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Energy Policy in Developing Countries 

Energy Policy in Developing Countries
Energy Policy in Developing Countries

Robert Bailis

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date: 25 July 2021

This chapter reviews some of the circumstances that affect energy policies in developing countries, discusses how these circumstances influence outcomes, and describes implications for climate change. Many developing countries lack conventional energy resources, such as coal, petroleum, and natural gas. With only traditional forms of energy like solid biomass (wood fuels, crop residues, and dung) available domestically, they must procure modern fuels in increasingly competitive international markets. As a result, many developing countries continue to rely on solid biomass for much of their energy needs, especially for household energy. Energy security (continuous without power outages) is a foundational component of energy policy in low-income settings. Energy policies to boost economic growth in developing countries often result in choosing less-cost options based on narrow financial considerations, which often fail to consider impacts on health, social welfare, or the environment.

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