Energy is essential to heat homes and cook meals. It is needed to deliver proper health care in hospitals and to teach children. It is essential for economic growth and development and for powering industries, farms and businesses. It is at the heart of any effort to make a better life possible for people all over the world, in particular for the world’s poorest.
Europe and Central Asia
Kelvin Doe found that batteries were too expensive for a project he was working on in 2009. He used acid, soda, and metal parts that he found in trash bins in his neighborhood to build his own battery. Doe, then a 13-year-old from Sierra Leone, constructed a generator to light his home and operate an FM radio station that he built. He now employs his friends at the radio station.
Diversification of a country’s exports – increasing both the number of products it produces and the destinations of those products – is considered part of the path to development. Many economists and policy-makers see export diversification as an important means for increasing employment and speeding growth. Diversification also makes growth more stable, as it provides protection against shocks; a country that exports many products will not be hit so hard when the price of one falls, and similarly, a nation that exports to a wide variety of destinations will be shielded against a recession in one of them.
But new evidence contributes to a body of work suggesting that countries with an abundance of natural resources might be more prone to export concentration during spurts of high natural-resource prices – mainly in products, but also to a milder extent in trading partners – leaving them more vulnerable to price swings.
[also available in Thai]
Recent headlines from places as diverse as Kenya ("6,000 primary schools picked for free laptop project") and California ("Los Angeles plans to give 640,000 students free iPads") are just two announcements among many which highlight the increasing speed and scale by which portable computing devices (laptops, tablets) are being rolled out in school systems all over the world. Based on costs alone -- and the costs can be very large! -- such headlines suggest that discussions of technology use in schools are starting to become much more central to educational policies and planning processes in scores of countries, rich and poor, across all continents.
Are these sorts of projects good ideas? It depends. The devil is often in the details (and the cost-benefit analysis), I find. Whether or not they are good ideas, there is no denying that they are occurring, for better and/or for worse, in greater frequency, and in greater amounts. More practically, then:
What do we know about what works,
and what doesn't (and how?, and why?)
when planning for and implementing such projects,
what the related costs and benefits might be,
and where might we look as we try to find answers to such questions?
- European Schoolnet
- Plan S@armiento BA
- Conectar Igualdad
- Plan Ceibal
- One Laptop Per Child
- 1-to-1 computing
- Information and Communication Technologies
- Europe and Central Asia
- United States
According to the International Energy Agency (IEA), global energy demand is likely to grow by more than one-third between now and 2035. Mobilizing investment capital is one major task. Additionally, energy infrastructure such as electric power facilities has a long time span – up to 40 or 50 years in the case of base-load nuclear or coal plants. As the new Growing Green report, released by the World Bank’s Europe and Central Asia Region, points out, with such a long time span and the enormous amount of capital at stake, power sector investments need to consider at least three types of uncertainties—changing regulations, changing technology, and changing climatic conditions.
Regulatory uncertainty persists in countries without formal greenhouse gas emission restrictions. Even in the EU, the emissions trading system is still evolving and future prices for carbon emissions will in large part depend on political decisions. Such schemes may spread to other parts of Europe and Central Asia as the implications of climate change become more apparent and support for climate action rises. A price on carbon, either through a cap-and-trade sys¬tem or a tax, can profoundly alter the comparative economics of different power generation technologies. With a price on carbon emissions, the cost differential between fossil-fuel plants and low-carbon alternatives shrinks and in some cases disappears.
Many international firms and banks already incorporate an assumed carbon price into their financial investment feasibility calculations. Expectations of future carbon pricing have already altered investment decisions favoring natural gas over coal-fired power plants in the U.S. (although more recently the drop in gas prices has been a larger factor). Conversely, regulatory uncertainty also hinders investments in low-carbon generation. The IEA estimates (pdf) that uncertainty in climate change policy might add a risk premium of up to 40 percent to such investments, driving up consumer prices by 10 percent.
World Bank study of Eastern Europe and Central Asian experience finds that complementary policies needed to get more renewable bang out of FiT buck.
Given that the effects of energy efficiency measures tend to be offset by a greater energy consumption that comes with economic growth, these measures, while important, will not by themselves be sufficient to achieve major reductions in emissions – making the move toward cleaner energy a rising priority for climate change mitigation.
A cup of coffee in Caracas costs almost 200 times a liter of gasoline. Households in Turkey paid 74 times more than their Egyptian counterparts for bottled cooking gas in early 2013. The price differences across countries for gasoline and diesel are even larger, as much as 250-fold for diesel.
Turkey’s remarkable economic growth over the last decade has been a much quoted success story. One often hears that the country trebled its per capita income, and has become the 16th largest economy in the world. One hears less often that this economic growth has been inclusive, accompanied by reduced poverty and expanded access to social services in health and education. And yet even these debates on expanded social services rarely move beyond quoting the headline numbers to look at the dynamics of change in the sector(s). This omission is unfortunate because the dynamics of change in the social sectors can be a harbinger for future progress. I want to draw the reader’s attention to the unheralded progress in the education sector.
Since our most recent Russia Economic Report (RER) just four months ago, the World Bank revised its 2013 growth outlook for Russia – down from 3.3 percent to 2.3 percent. This downward revision in May represents a decline in our projections by 1.0 percentage point compared with March, and 1.3 percentage points compared with October 2012.
Under current trajectories, the world is headed toward a world that will be 4 degrees warmer by the end of this century. Despite the mounting concern around this scenario, many countries throughout the Europe and Central Asia (ECA) region are understandably reluctant to introduce more ambitious climate policies because they are worried about the negative consequences on competitiveness or energy affordability, for instance.
However, as we try to show in our recent publication, Growing Green: the Economic Benefits of Climate Action, strategic investment in climate action can benefit these countries in the medium- and long-terms – thus offsetting the negative consequences of these investments.
Above all, countries need to focus on three types of climate action: climate action as a co-benefit, climate action as an investment, and climate action as insurance.