A Companion to the Philosophy of Technology

Energy and Economic Growth

Energy is a key production factor, and empirical research confirms this role (Halsnæs and Garg 2006). Based on this, developing countries today have energy security in terms of reliable supply and low costs as a major policy priority. However, energy security is challenged by the volatility of international oil markets, and by international requests for cleaner energy sources in order to prevent global warming and other environmental impacts. These international requests could imply depressed energy supply and increasing costs if domestic sources like coal are excluded. Seen in relation to the perspective of energy access and affordability of private consumers, environmental concerns can be in conflict with energy demand. It is here important to recognize that in particular low-income households presently have low energy access, so there is a special equity dimension related to access. Furthermore, energy expenditures are a relatively high share of household expenditures of low-income families, which can make it controversial to increase energy costs seen from an equity perspective (Halsnæs and Garg 2006).

A utility-based equity approach would in this context focus on the welfare consequences of increased energy consumption at macro-economic level and in relation to households. These consequences can be measured in terms of GDP impacts, and costs and benefits to households and companies of increased energy consumption versus the costs and benefits of ...