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Deciding the Future: Energy Policy Scenarios to 2050

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<strong>Deciding</strong> <strong>the</strong> <strong>Future</strong>: <strong>Energy</strong> <strong>Policy</strong> <strong>Scenarios</strong> <strong>to</strong> <strong>2050</strong> World <strong>Energy</strong> Council 2007 Introduction<br />

9<br />

redistribution. Ideally, this happens through a<br />

process of mutually beneficial cooperation<br />

between countries. While cooperation can<br />

occur naturally, driven by market forces, this<br />

is by no means true in all cases. There are<br />

numerous examples throughout his<strong>to</strong>ry<br />

where countries went <strong>to</strong> war <strong>to</strong> gain or deny<br />

access <strong>to</strong> resources.<br />

A nation poor in natural and financial<br />

resources has little <strong>to</strong> offer and is unlikely <strong>to</strong><br />

attract support from <strong>the</strong> rich. The private<br />

sec<strong>to</strong>r will not invest <strong>the</strong>re because it cannot<br />

earn returns commensurate with <strong>the</strong> risks,<br />

and <strong>the</strong> country is <strong>to</strong>o poor <strong>to</strong> pay<br />

appropriate returns <strong>to</strong> attract inves<strong>to</strong>rs.<br />

There is no transfer of know-how and<br />

technology and no development of human<br />

capacity. A poverty spiral often results<br />

unless <strong>the</strong>re is some form of goodwill (e.g.,<br />

Development Agencies) that bridges <strong>the</strong> gap<br />

and supports cooperation.<br />

Many countries have entered in<strong>to</strong><br />

cooperative agreements <strong>to</strong> <strong>the</strong>ir mutual<br />

benefit. Exchanges of goods and services<br />

and international trade agreements are<br />

examples. In some cases, cooperative<br />

agreements are driven by a need <strong>to</strong> share<br />

common resources, such as <strong>the</strong> case with<br />

<strong>the</strong> development of hydropower (<strong>the</strong> river<br />

being <strong>the</strong> common element). The<br />

development of international power pools is<br />

ano<strong>the</strong>r example where parties have come<br />

<strong>to</strong>ge<strong>the</strong>r for mutual benefit. Such<br />

arrangements often require specific<br />

international treaties or agreements <strong>to</strong><br />

enable <strong>the</strong>m. However, <strong>the</strong>re are also cases<br />

of little or no cooperation. In some cases,<br />

opposing political ideologies prevent<br />

cooperation.<br />

Cooperation and integration also has a<br />

broad enough spectrum <strong>to</strong> embrace <strong>the</strong><br />

aspirations and ideologies of all <strong>the</strong> WEC<br />

Member Committees and is material <strong>to</strong> <strong>the</strong><br />

achievement of <strong>the</strong> 3 A’s.<br />

The core of this report is <strong>the</strong> assessment of <strong>the</strong><br />

four policy scenarios within <strong>the</strong> context of <strong>the</strong>se<br />

two axes. It details <strong>the</strong> policy choices and<br />

actions necessary <strong>to</strong> advance <strong>the</strong> achievement<br />

of <strong>the</strong> 3 A’s.<br />

1.3. Process<br />

The methodology adopted in this report<br />

comprises group analysis with consistency<br />

checks using ma<strong>the</strong>matical simulations. That<br />

means that, in essence, this is a modified Delphi<br />

study. 6 It is also “normative” because it defines<br />

desirable characteristics of <strong>the</strong> future related <strong>to</strong><br />

<strong>the</strong> WEC 3 A’s (see Section 2 for more detail).<br />

Regional groups, in a series of several<br />

workshops, developed descriptions of how <strong>the</strong><br />

world would look in terms of <strong>the</strong> 3 A’s, including<br />

relative changes in quantitative estimates of <strong>the</strong><br />

chosen indica<strong>to</strong>rs. Any Delphi study may be<br />

faulted in having a built-in tendency <strong>to</strong> limit itself<br />

<strong>to</strong> conventional wisdom and prevailing<br />

6<br />

<strong>Energy</strong> <strong>to</strong> <strong>2050</strong>: <strong>Scenarios</strong> for a Sustainable <strong>Future</strong>, IEA,<br />

Paris, 2003.

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