Recent trends in trade arrangements have a tendency to curtail the policy options that developing countries can tailor to achieve their objectives of growth, economic development, and social welfare. At the same time, in the past decades we have seen that countries that have achieved high levels of growth and poverty reduction have benefited from a combination of orthodox and heterodox policies, which invariably include integration objectives.

Two billion people, or roughly one third of humanity, still lack access to modern energy services such as heat, light and mechanical power, all of which are integral to economic development. Employing sustainable energy technologies to increase access to these services has proven beneficial to poor, underdeveloped communities by improving livelihoods and generating sources of income. In addition to the significant environmental benefits associated with sustainable energy technologies, cleaner technologies are often the most cost-effective solutions in remote, rural areas. In the case of electricity, for example, conventional grid-extension can be prohibitively expensive. Moreover, studies indicate that poor energy consumers have a high willingness and ability to pay for these technologies given the proper financial mechanisms. If the provision of modern energy services through sustainable energy technology creates a potential win-win solution for the environment, the private sector as well as poor, rural energy consumers, why haven’t more projects succeeded? Which economic, financial and policy barriers exist to successful implementation of profitable rural energy programs? What is the role of government, multi-lateral institutions, and the private sector? What are the important lessons to be learned from past rural energy efforts and how can we make projects more self-sufficient in the future? Lastly, what creative solutions can we employ to improve access to energy services in underdeveloped countries? Read more