Energy for Development: Institutions, Incentives, and the Misallocation of Resources
Author(s)
Tugwell, Franklin
Abstract
This essay focuses on the set of incentives and disincentives that are critical to shaping the capital commitments necessary for energy infrastructure. Specifically, the author identifies the kinds of incentives that can prevent people from doing things that are irrational in the long-term but that go against ingrained habits of thought and the institutional designs that shape everyday decisions. He suggests that more resources be allocated to the development of renewable energy systems in the developing world as well as some of the legal and institutional changes that will be required for countries to move to an economically and environmentally more sensible future.
