The potential influence of energy efficiency and economic efficiency on developing country carbon dioxide emissions

This paper focuses on the potential impacts of energy efficiency and economic efficiency on the future CO2 emissions of developing countries (DCs). It explores and offers some support to the hypothesis that, despite the opportunities for and value to the developing world of greater energy efficiency, in a situation where tight restrictions on global CO2 emissions were deemed necessary, efficiency alone could make only a limited contribution to restraining the growth of DC emissions. This is because of the projected rapid energy growth rates in most DCs, especially in the industrial sector and from fossil-fuelled electricity and transport, associated with growth in per capita incomes and population. The priority to be given to research and development work on energy efficiency, relative to that on other measures to address global CO2 emissions, particularly fuel-switching, is also examined It is suggested that the pursuit of a diversified portfolio of R & D investments would be the most appropriate strategy to assist in the stabilisation of future DC CO2 emissions.