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To become prosperous and globally competitive, emerging economies require reliable, affordable, and abundant energy for industry and households
Energy is essential for economic growth and the basis of modern lifestyles, yet more than a billion people worldwide live without access to electricity. For millions who may have some access, power is too unreliable or expensive to achieve real prosperity. Boosting generation and expanding access are top priorities for African governments and their partners, including through the US Power Africa Initiative and the Electrify Africa Act. CGD research seeks to redefine what the world means by “modern energy” and to suggest ways to provide energy at scale for development to flourish.
Every year, millions of Americans power up decorative lights to celebrate the holidays. These festive lights invoke the best human aspirations of peace, joy, and generosity. This time of year, Americans should also celebrate that we can enjoy these traditions because we live in a country with a modern energy system that (almost always) delivers affordable 24/7 electricity.
This paper covers qualitative case studies from Iran, Nigeria, and India to illustrate a series of lessons for governments implementing subsidy reform policies. From these three country experiences, we find that fostering public support to implement lasting reform may depend on four measures: (1) forming a public engagement plan and a comprehensive reform policy that are then clearly communicated to the public in advance of price increases; (2) phasing in price adjustments over a period of time to ease absorption; (3) providing a targeted compensatory cash transfer to alleviate financial impacts on low- to middle-income households; and (4) capitalizing on favorable global macroeconomic conditions.
The World Bank now has three benchmarks for measuring poverty. The “headline” extreme poverty threshold of $1.90/day will stay, but two new international poverty lines were added for lower middle-income ($3.20/day) and upper middle-income ($5.50/day) countries. While it’s great that the World Bank is bringing a little more nuance to the way we define poverty, it's still a repackaging of Lant Pritchett’s kinky development.
In the past decade, Ghana has experienced severe electricity supply challenges even though installed generation capacity has more than doubled over the period. The electricity supply challenges can be attributed to a number of factors, including a high level of losses in the distribution system as well as non-payment of revenue by consumers. Solving Ghana’s electricity challenges would require a range of measures.
This paper finds that end-user financing (i.e. consumer subsidies and tax rebates) is relatively ineffective at enhancing sales of off-grid solar technologies in India. If the government is to make meaningful progress toward its national goal to extend a constant supply of electricity to every household in the coming years, it will need to learn from and adapt its current financing structures for off-grid solar (and other renewable energy) technologies.
We present results below from a survey of shop owners who are part of the Indian government’s Akshay Urja Solar Shops program. To our knowledge, the Akshay Urja program has not previously been evaluated. These results build on a case study featured in an upcoming CGD policy paper on clean energy access entitled, “Financing for Whom by Whom? Complexities of Advancing Energy Access in India.”
Are some countries too poor to consume a lot more energy? Or is income growth being held back by a lack of reliable and affordable electricity? While there is a strong relationship between energy consumption and income, the direction of causality is often far less clear. One way to estimate unmet demand may be to try to compare pairs of countries—e.g., how much additional energy does Kenya need to reach the level of Tunisia?