The Palgrave Handbook of International Energy Economics

Foreword Acknowledgements Contents Notes on Contributors Abbreviations List of Figures List of Tables List of Boxes Introduction Economics of Energy Production and Distribution Economics of Energy Trading and Price Discovery Global Energy Trends Energy and the Economy: Continental Perspectives In Conclusion Part I: Economics of Energy Production and Distribution Chapter 1: Economics of Oil and Gas Production 1 Introduction 2 The Main Actors 2.1 The State 2.2 The Oil Companies 2.3 The Contractors 3 The Different Phases of Exploration-Production 3.1 Exploration 3.1.1 Geology 3.1.2 Geophysics 3.1.3 Seismic Cost 3.1.4 Drilling 3.1.5 Cost of Drilling 3.1.6 Total Cost of Exploration 3.2 Development 3.2.1 Production Drilling 3.2.2 Production Drilling Cost 3.2.3 Floating Supports 3.2.4 Total Development Costs 3.3 Production 3.3.1 Operating/Exploitation Costs 3.4 Dismantling—Site Restoration 3.5 Technical Cost 3.5.1 Cost Reduction 4 The Patrimonial Agreement 4.1 Procedures for Awarding Mining Titles/Contract 5 Concession 6 Production Sharing Contracts 7 Comparison Between Concession and PSC 8 Service Contract 9 Economic Studies Bibliography Chapter 2: Economics of Gas Transportation by Pipeline and LNG 1 Long-Distance Pipelines 1.1 Economics of Pipeline Projects 1.1.1 CAPEX 1.1.1.1 Economies of Scale 1.1.2 OPEX 1.1.3 Optimal Pipeline Design 1.2 Commercial Implications: Contract Design and Tariff Structuring 1.2.1 Characteristics of Gas Transportation Agreements 1.2.2 Tariff Structures 2 LNG 2.1 Liquefaction Terminals 2.1.1 CAPEX Structure 2.1.2 Unit Investment Costs 2.1.3 OPEX 2.1.4 Project Structuring and Contract Design 2.2 LNG Shipping 2.2.1 LNG Carriers 2.2.2 LNG Chartering 2.2.3 Unit Cost of LNG Transportation 2.3 Regasification Terminals 3 Conclusion References Chapter 3: Economics of Oil Refining 1 Introduction 1.1 Crude Oil 1.2 The Main Steps of Refining 2 History and Evolution of Refining 3 Refining Capacities Around the World 4 Refining Structure and Evolution of Demand by Product 4.1 Recent Developments 5 Refining Investment Costs 6 Refining Costs 6.1 Variable Refining Costs 6.2 Fixed Costs 6.3 Recovery of Capital Costs 6.4 Total Refining Cost 6.5 Factors That Influence Refining Costs and Profitability 7 Costs and Margins 7.1 Margins by Region 7.2 Future Margins and Costs 8 Oil Demand for Tomorrow 9 The Future of Refining Bibliography Chapter 4: Economics of Hydrogen 1 Introduction 2 Hydrogen Use and Markets 2.1 Transport 2.2 Private Households and Heat 2.3 Chemical and Heavy Industry 2.4 Power Sector 3 Potential Applications of Hydrogen 3.1 Hydrogen Policy and Regulation 4 Hydrogen Infrastructure 4.1 Production 4.2 Storage 4.3 Hydrogen Processing and Conditioning 4.4 Hydrogen Delivery 4.5 Hydrogen Refueling 5 Hydrogen Safety 5.1 The Public Acceptance of Hydrogen 5.2 Willingness to Pay 6 Conclusions References Chapter 5: Economics of Power Generation Chapter 6: Power Generation from Coal, Oil, Gas, and Biofuels 1 Introduction 2 Alternative Electricity Generation Options 2.1 Coal Power Plants 2.1.1 The History of Coal-Fired Power Generation 2.1.2 Global Coal-Fired Electricity Generation 2.2 Global Gas Power Generation 2.2.1 Status Quo 2.2.2 Future Plans 2.3 Biofuel-Based Power Generation 2.3.1 Current Situation 2.3.2 Process and Technology Status 2.4 Oil-Fired Power Stations 2.4.1 Role at Present 2.4.2 Oil-Fired Plants in Different Countries 3 Economic Characteristics 3.1 Economic Analysis 3.1.1 Fixed and Variable Costs 3.1.2 Life Duration and Revenue 3.1.3 Basic Economic Indicators 3.2 Financial Analysis 3.3 Dispatchability and Flexibility 3.4 Location 3.5 Expected Service Life 4 Conclusion Bibliography Chapter 7: Power Generation from Nuclear Energy 1 Reminder: Current and Expected Role of Nuclear in Decabonization Scenarios 2 Fundamentals of Nuclear Economics 2.1 Cost of Production 2.2 Revenues from Nuclear Plants 3 Economics of Nuclear Long-Term Operations 3.1 Cost Drivers for Long-Term Operation of Nuclear Plants 3.2 Competitiveness of Long-Time Operations of Nuclear Power Plants 4 Economics of New Nuclear Projects 4.1 Challenges Associated with Delays and Cost Overruns in Recent Projects 4.2 Cost Drivers of New Nuclear Projects 4.3 Potential for Reduction in the Cost of New Nuclear Projects 4.4 A Case for Disruptive Innovation: Small Modular Reactors (SMRs) 5 New Research on the Value of Nuclear in the Future Low-Carbon Mix 5.1 Beyond the Cost of Power Generation, the Notion of “System Costs” 5.2 MIT Study Shows That the Least-Cost Carbon-Neutral Portfolio Includes a Share of Nuclear 5.3 Toward Major Changes in the Regulation of Electricity Markets 6 Conclusion References Chapter 8: Hydropower 1 Introduction 2 Run-of-River 3 Hydro Storage 4 Pumped-Storage Hydroelectricity 5 Role of Hydropower in Generation Portfolios and Flexibility 6 Hydropower Costs and the Financing of Hydropower Plants 7 Outlook for Hydropower References Chapter 9: Solar Power Generation 1 Introduction 2 Technical Characteristics of Solar Energy 2.1 Solar PV 2.2 Concentrated Solar Power 3 Applications of Solar Energy 4 Costs of Solar Energy 4.1 Declining Investment Costs of Solar Energy 4.2 Operation and Maintenance Costs of Solar Energy 4.3 LCOE of Solar Energy 5 Generation Pattern of Solar Energy 6 Potential of Solar Energy 7 Policy Instruments and Support Schemes 8 Outlook Literature Chapter 10: Wind Power Generation 1 Introduction 2 Technical Characteristics 3 Technical Potential of Wind Energy 4 Costs of Wind Energy 5 System Integration 6 Policies Supporting Wind Energy Literature Chapter 11: Geothermal Power Generation 1 Introduction 2 Geothermal Energy Technology and Utilization 2.1 Dry Steam Power Plants 2.2 Flash Steam Power Plants 2.3 Binary Cycle Power Plants 2.4 Combined-Cycle or Hybrid Plants 2.5 Enhanced Geothermal System (EGS) 2.6 Heat Pump and Direct Use Systems 3 Geothermal Power Generation Worldwide and Market Overview 4 Geothermal Energy Costs and the Financing of Geothermal Power Plants 5 Outlook for Geothermal Energy Cited References and Consulted Official Report and Scientific Publications Chapter 12: Power Generation from Tides and Waves 1 Introduction 2 Resources, Technologies, Deployments 2.1 Tidal Current Devices 2.2 Tidal Current Device Deployment 2.3 Wave Energy Converters 2.4 Wave Energy Converter (WEC) Deployment 3 Cost Drivers 3.1 Technology Cost Drivers 3.2 System Costs: Levelized Cost of Electricity 4 Economic Value: Relevant Markets and Applications 4.1 Remote and Island Communities 4.2 Faroe Islands (Resource Complementarity) 4.3 Alaska (Fuel Supply and Resource Availability) 4.4 Caribbean & Indian Ocean Islands (Land Use) 4.5 Military Bases 4.6 Constrained Grids and Grids with High Renewable Energy Contributions 4.7 Scotland (Energy Storage Integration) 4.8 Australia (Renewables Integration) 4.9 Powering the Blue Economy 5 Conclusion References Chapter 13: The Economics of Energy Networks 1 Wires and Pipes: Electricity and Gas as Network-based Energy Sources 2 Physical and Economic Properties of Energy Networks 3 Natural Monopoly and Vertical Integration 4 The Unbundling of Energy Networks 5 Third-party Access to Unbundled Networks 6 Revenue Regulation in Energy Networks 7 Network Tariffs and Market Structures 8 Conclusion: The Future of Energy Networks Bibliography & Further Readings Chapter 14: Economics of Electricity Battery Storage 1 Introduction 2 Battery Technologies 2.1 Li-Ion Batteries 2.2 Other Battery Technologies 2.2.1 Lead Batteries 2.2.2 Sodium-Sulfur Batteries 2.2.3 Flow Batteries 3 Economics of Li-Ion Batteries 3.1 Investment Cost 3.2 O&M and Charging Costs 3.3 End of Life: Decommissioning and Recycling 3.4 Performance Parameters 3.5 Comparison of Different LCOS Studies 3.6 External Context and Revenue Opportunities 3.7 Future Deployment of Stationary Li-Ion Batteries 4 Conclusions References Chapter 15: Economics of Sector Coupling 1 Introduction 2 Power-to-Gas 3 Power-to-Heat 4 Power-to-Vehicles 5 Power-to-Liquids 6 Economic Comparison of Sector Coupling Options 7 Conclusions Bibliography Chapter 16: The Integration of Non-dispatchable Renewables 1 Introduction 2 Characteristics of Non-dispatchable Renewable Energy Sources 2.1 Technologies and Their Characteristics 2.2 Key Properties 3 The Changing Structure of Power Systems 3.1 Impact on System Adequacy 3.2 Impact on the Mix, Type and Operations of Plants in the System 3.3 The Rise of Distributed Generation 3.4 The Merit Order Effect 4 Main Integration Options 4.1 Increasing Flexibility of Power Plants 4.2 Energy Storage 4.3 Demand-Side Response 4.4 Transmission and Distribution Grids and Interconnections 5 Economic Implications 5.1 Economic Value of System Flexibility 5.1.1 Changing Value of Wind and Solar PV Electricity Production 5.1.2 Competitiveness, LCOE and System Costs 5.2 Impact on Power Markets and Attractiveness to Invest in New Plants 5.3 Impact on Electricity Prices and Affordability 6 Conclusions References Chapter 17: Financing of Energy Investment 1 Identifying the Volume and the Nature of the Funds Needed 1.1 Project Viability Analysis 1.1.1 Revenues 1.1.2 Costs 1.2 The Nature and the Cost of Funds 1.2.1 Financing Instruments 1.2.2 Cost of Financing 2 Structuring the Financing of an Energy Project 2.1 Financing Models Used for Energy Projects 2.1.1 “Corporate Finance” and “Project Finance” 2.1.2 The Choice of the Financing Structure 2.2 Investors in Energy Projects 2.2.1 Debt Lenders 2.2.2 Equity Investors 3 Financing Renewable Energy Projects 3.1 Financing Solar Photovoltaic (PV) Projects 3.2 Financing Wind Projects 3.3 Financing Grid 3.4 Financing Hydropower 4 Financing Oil and Gas Projects 4.1 Financing Upstream Oil and Gas Projects 4.2 Financing Mid and Downstream Oil and Gas Projects 5 Conclusion References Recommended Readings Part II: Economics of Energy Trading and Price Discovery Chapter 18: The Trading and Price Discovery for Crude Oils 1 Introduction: Global Oil Markets 2 Oil Industry and Markets: A Brief Historical Introduction 2.1 Beginnings of the Oil Industry in the US 2.2 The ‘Majors’ 2.3 The ‘Independents’ 2.4 The Oil Cartel 3 ‘Spot’ Market and Prices 4 Oil Price Benchmarks 4.1 West Texas Intermediate (WTI) 4.2 Dated Brent 4.3 Dubai: Brent’s Asian Cousin 4.4 Oman: Dubai’s Neglected Sibling 5 Global Oil Markets: Benchmarks in Action 6 Speculation and Financialization: Price Makers and Price Takers 7 Concluding Remarks Bibliography Chapter 19: The Trading and Price Discovery of Oil Products 1 Introduction 2 Some Very Basic Carbon Chemistry 2.1 PONA 3 The Crude Oil Assay 4 Whole Crude Properties 4.1 Density 4.2 Sulphur Content 4.3 Pour Point 4.4 Acid, Salt and Metals 5 Refining Processes 5.1 Primary or Atmospheric Distillation 5.2 Hydrodesulphurisation and Reforming-Hydroskimming 5.3 Upgrading/Conversion 5.4 Other Refining Processes 6 Refined Products 6.1 LPG 6.2 Naphtha 6.3 Gasoline 6.4 Kerosene/Jet Fuel 6.5 Gas Oil/Diesel Fuel 6.6 Fuel Oil and Bunkers 6.7 Lubes 6.8 Bitumen 6.9 Coke 7 Gross Product Worth and the Value of Crude Oil 8 Leads and Lags in Petroleum Prices Bibliography Chapter 20: The Trading and Price Discovery for Natural Gas 1 Pricing and Prices—General Remarks on Their Functions 2 Variety of Pricing Mechanisms Along the Gas Value Chain 3 A Taxonomy of Pricing Mechanisms 4 The Rationale of Oil Indexation 5 Oil Indexation Comes Under Pressure: Gas-to-Gas Competition 6 Gas Pricing in the 2020s 7 Conclusion References Chapter 21: The Trading and Price Discovery for Coal 1 Major Producers, Importers and Exporters of Coal: Main Trends 2 Different Coal Qualities and Price Discovery Tools 2.1 Quality 2.2 Some Concepts on Coal Mining 2.3 Price Discovery 2.4 Thermal Coal Qualities 3 Major International Contracts 3.1 Thermal Coal 3.2 Coking Coal 4 Derivatives and Market Liquidity 5 Notes Chapter 22: The Trading of Electricity 1 Introduction 1.1 The Electricity Industry and Its Value Chain 1.2 The Emergence of Electricity Markets 2 Theoretical Foundation and Design of Wholesale Electricity Markets 2.1 How to Define the Price of Electricity? 2.1.1 Marginal Pricing of Electricity 2.1.2 Spatial Distribution of Electricity Prices 2.2 The Emergence of Different Wholesale Market Designs 2.2.1 Nodal and Zonal Market Designs 2.2.2 Centralized and Decentralized Market Organizations 2.2.3 Ancillary Services 2.3 The Problem of System Adequacy: Capacity Mechanisms 3 Electricity Trading in Practice 3.1 Wholesale Electricity Trading 3.1.1 Electricity Transactions 3.1.2 Market Participants 3.1.3 Trading Venues 3.1.4 Liquidity 3.1.5 The Trading Sequence 3.2 Power Derivatives 3.2.1 Hedging, Sourcing and Arbitraging 3.2.2 Power Derivatives in Europe and the US 3.3 Spot Electricity Markets 3.3.1 The Day-Ahead Spot Market 3.3.2 The Intraday and Real-Time Markets 4 Looking Ahead, New Challenges for the Power Markets Bibliography Chapter 23: The Trading of Carbon 1 Introduction 2 Pricing Carbon: Carbon Taxes Versus Emissions Trading Systems 3 Design Options for Emissions Trading Systems 3.1 Cap Setting 3.2 Scope and Coverage 3.3 Supply of Allowances to the Market 3.4 Flexibility Provisions 3.5 MRV, Enforcement and Market Oversight 3.6 Price/Quantity Management Mechanisms 3.7 Use of Revenues 4 The Experience of the EU ETS and its Ongoing Evolution 4.1 The Early Years of the EU ETS 4.2 Challenges and Reforms: EU ETS Phase 2 and Phase 3 4.3 EU ETS Fit for Life? Phase 4 Reform 4.4 Lessons Learnt and Way Forward 5 Other Major ETS Markets and Potential for Interconnection 5.1 Emissions Trading Systems: Examples from Around the World 5.1.1 Western Climate Initiative (WCI): California and Québec 5.1.2 Regional Greenhouse Gas Initiative (RGGI) 5.1.3 Korean Emissions Trading System (KETS) 5.1.4 China 5.2 Carbon Trading and Potential for International Cooperation Mechanism Bibliography Chapter 24: Unbundling, Markets, and Regulation 1 Introduction 2 Energy as a Network Industry 3 Unbundling Vertical Monopolies and Enforcing Competition Through Regulation 4 Natural Gas Unbundling and Liberalisation 5 Electricity Market Liberalisation 6 Unbundling Markets in Developing Countries 7 Energy Market Transition and Innovation 8 Conclusion References Part III: Global Energy Trends Chapter 25: Macroeconomics of the Energy Transition 1 Introduction 2 Energy: In Transition 3 Imposing a Price on Carbon 4 Carbon Prices Are a Tax 5 Effects on the Destination of Income 6 How to Encourage Investment? 7 Income Distribution 8 Employment 9 Conclusions Bibliography Chapter 26: Energy Demand Drivers 1 Introduction 2 Assessing Energy Demand Drivers: Overview 2.1 Energy Demand: What Is Behind? 2.2 Time Issues 2.3 Role of Main Actors 2.4 Social Forces and Behaviour 3 Energy Demand Drivers in Industry 3.1 Outlook of Energy Demand in Industry 3.2 Overview of Energy Demand Drivers in Industry 3.3 Insights in Energy-Intensive Industries 3.4 Insights in Other Sub-sectors 3.5 Some Critical Issues 3.6 National Versus Global Vision of Energy Demand in Industry/Regional Issues 3.6.1 How Energy Consumption for Industry is Distributed Among World Regions? 3.6.2 Energy Versus Industrial GDP and Share of Energy-Intensive Industries 4 Transport 4.1 Outlook of Energy Demand in Transport: Historical Evolution, Structural Aspects 4.2 Drivers Related to Mobility and Trade 4.2.1 Passenger Transport in Private Vehicles 4.2.2 Passenger Transport in Public Modes 4.2.3 Freight Transport 4.3 Drivers Related to Technology 4.3.1 Transport Modes Infrastructures 4.3.2 Vehicles Technology 4.3.3 Main Issues 4.4 National Versus Global Vision of Energy Demand in Transport 4.4.1 How Energy for Transport Is Distributed Worldwide? 4.4.2 Transport Energy and GDP According to World Regions, and Motor Fuel Prices 5 Buildings 5.1 Outlook for Energy Demand in Buildings: Historical Evolution, Structural Aspects 5.2 Overview of Needs and Energy End-Uses in Buildings 5.2.1 Housing Buildings 5.2.2 Services Buildings 5.3 Socio-economic-Related Drivers 5.3.1 Housing Buildings 5.3.2 Services Buildings 5.4 Technology-Related Drivers 5.4.1 Buildings 5.4.2 Equipment 5.5 The Main Issues 5.5.1 Building Heritage 5.5.2 Budget Coefficients 5.5.3 Information Spread and Imitation 5.5.4 Energy Efficiency and Environment Objectives 5.6 National Versus Global Vision of Energy Demand in Buildings 5.6.1 How Energy for Buildings Is Distributed Worldwide? 5.6.2 Buildings’ Energy and GDP According to World Regions, and Energy Prices 6 Electricity 6.1 Overview 6.2 Electricity Substituting for Fossil Fuels 6.2.1 Drivers and Limitations 6.2.2 Information and Complementarity 6.2.3 Impacts on Primary Energy Demand 6.3 Specific/Captive End-Uses of Electricity 6.3.1 Information Mastering and Electricity Expansion 6.3.2 Impacts on Primary Energy Demand 6.4 Main Issues Bibliography Chapter 27: Energy Subsidies 1 Introduction 2 Subsidies and Energy Subsidies 2.1 Different Types of Subsidies 2.2 Categorizing Energy Subsidies 3 Fossil Fuel Consumption Subsidies 3.1 Subsidy Objectives 3.2 Subsidy Types 3.3 Subsidy Estimates 3.4 The Politics of Fossil Fuel Consumption Subsidies 3.4.1 The Drivers of Fossil Fuel Consumption Subsidy Reform 3.4.2 The Drivers of Fossil Fuel Consumption Subsidies 4 Fossil Fuel Production Subsidies 4.1 Subsidy Objectives 4.2 Subsidy Types 4.3 Subsidy Estimates 4.4 The Politics of Fossil Fuel Production Subsidies 5 Renewable Electricity Subsidies 5.1 Subsidy Objectives 5.2 Subsidy Types 5.3 Subsidy Estimates 5.4 The Politics of Renewable Electricity Subsidies 6 Conclusion: Energy Subsidies and the Politics of Reform References Chapter 28: Economics of Access to Energy 1 Energy Access: Fundamentally an Economic Problem 2 Access to Electricity: Economic Issues and Policy Instruments 2.1 Generation, Transmission, and Distribution Infrastructure Expansion 2.2 Budgetary Deficit of National Utilities and Subsidy Reforms 2.3 Investment Attractiveness and Private Capital 2.4 The Ability-to-Pay of Households, Connection Charges, and New Payment Schemes 3 Access to Clean Cooking: Economic Issues and Policy Instruments 3.1 Modern Cooking Fuels: Lack of Infrastructure and Economic Incentive 3.2 Complementary Cooking Solutions for the Short and Longer Term 3.3 Fuel Choice and Behavioural Barriers 4 Conclusion: Enabling Energy Access 4.1 Economic Issues of Energy Access 4.2 Coordinated Policy Actions to Enable Energy Access References Chapter 29: Disruptive Technologies 1 Introduction 2 Monitoring Changes in Energy 3 Past Disruptions in the Energy Industry 3.1 Residential Heating in Germany: The End of Coal in the 1990s 3.2 Electricity Generation in the US: Gas Overtaking Coal 3.3 Electrification of OECD Countries: The Rise of Electricity 4 Potential Future Disruptions in the Energy Industry 4.1 Towards a Mass Market for Electricity Generation 4.2 Hydrogen and Green Gas, a Way to Keep Gas in the Game 4.3 Electrification Phase Two: Transport and Heating 5 Summary and Conclusions References Chapter 30: The Impact of Digitalization 1 Introduction 2 Digitalization in the Context of the Energy Sector 3 Impact of Digitalization on the Supply of Energy 3.1 Impact of Digitalization on the Extraction of Fossil Fuels 3.2 Impact of Digitalization on the Supply of Electricity 4 Towards an Integrated Customer-Centric Energy System 4.1 An Interconnected and Responsive Energy System 4.2 A Customer-Focused Power Sector 5 Wider Issues Concerning the Risks, Costs and Threats of Digitalization 5.1 Cybersecurity 5.2 Privacy and Data Ownership 5.3 Energy Use from Digitalization 5.4 Changes in the Workforce 6 Conclusions Annex: Glossary of Digital Technologies Existing and New Data Sources Data Visualization, Analysis and Evaluation Control and Automation Bibliography Part IV: Energy and the Economy Chapter 31: Energy and the Economy in China 1 An Energy System Dominated by Industrial Use 2 Supplies and Policy Priorities 3 An Economic Transition and Environmental Awakening 4 Energy and Industry 2.0 5 The Energy Sector: Stranded between the Plan and the Market References: Chapter 32: Energy and the Economy in Russia 1 Introduction 2 Demography and Macroeconomics 2.1 Demography 2.2 Macroeconomics 2.3 Impact of Demography and Macroeconomics on Domestic Energy Demand 3 Resources Available 3.1 Energy Resources 3.2 Energy Resource Production and Exports 3.3 Domestic Energy Consumption 4 The Role of Energy in the Russian Economy 4.1 Current Role of Energy in the Russian Economy 4.2 The Future of Russian Energy Exports 5 Institutional Framework of the Russian Energy Sector 5.1 Oil Sector 5.2 Gas Sector 5.3 Electricity Sector 6 Climate Policy 7 Technological Policy 7.1 Energy Efficiency 7.2 Renewable Energy Sources 7.3 Decentralization and Distributed Energy Resources Potential in Russia’s Power System 7.4 Digitalization of Energy as the Government Priority 7.5 Hydrogen 8 Prospects of Energy Transition: Challenges and Opportunities References Chapter 33: Energy and the Economy in the Middle East and North Africa 1 Introduction 2 Economic and Demographic Growth 3 Energy in Arab Economies 4 Energy Pricing and Fiscal Policies 5 Arab Region Progress on SDG 7 5.1 Energy Access 5.1.1 Electricity Service Quality and Affordability 5.2 Renewable Energy 5.2.1 Renewable Energy Announced Targets, National Policies, Projects and Upcoming Capacities 5.3 Energy Efficiency 6 Conclusion and Key Policy Recommendations Bibliography Chapter 34: Energy and the Economy in Sub-Saharan Africa 1 An Energy Scene Dominated by Foreign Actors 1.1 Oil Production and Reserves 1.2 Natural Gas Production and Reserves 2 A Region Plagued by the Resource Curse 2.1 The Paradigmatic (and Dramatic) Case of Nigeria 3 The Lack of Access to Energy 3.1 The Lowest Electrification Rate in the World 3.2 Limited Access to Clean Cooking Energy and Heavy Reliance on Biomass 4 The Challenges Ahead 4.1 Harnessing the Resources 4.2 Improving the Governance to Attract Investments 4.3 Fostering Regional and International Cooperation Bibliography Chapter 35: Energy and the Economy in North America 1 Introduction 2 The U.S. 3 Canada 4 Mexico 5 Future Development Bibliography Chapter 36: Energy and the Economy in Europe 1 Introduction 2 The Heterogeneity of Europe’s Energy Sector 3 Historical Evolution of the EU Energy Policy Framework 4 Historical Evolution of the EU Energy Mix 4.1 The Role of Energy Imports and Security Concerns 5 Case Studies on Selected National Pathways 5.1 United Kingdom 5.2 Italy 5.3 France 5.4 Germany 5.5 Poland 6 The Green Deal: Toward a Carbon-Neutral EU in 2050 7 Conclusions Bibliography Energy Units Conversion Tables Index This open access handbook is distinguished by its emphasis on international energy, rather than domestic energy policies or international geopolitic aspects. Addressing key topics such as energy production and distribution, renewables and corporate energy structures, alongside global energy trends, regional case studies and emerging areas such as the digitalization of energy and energy transition, this handbook provides a major new contribution to the field of international energy economics. Written by academics, practitioners and policy-makers, this handbook is a valuable and timely addition to the literature on international energy economics. This book was published open access with the support of Eni.