1.4 Opportunities, barriers and issues
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1.4.1 Opportunities
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1.4.1.1 Social and economic development
Globally, per capita incomes as well as broader indicators such as the Human Development Index are positively correlated with per capita energy use, and economic growth can be identified as the most relevant factor behind increasing energy consumption in the last decades. As economic activity expands and diversifies, demands for more sophisticated and flexible energy sources arise. Economic development has therefore been associated with a shift from direct combustion of fuels to higher quality electricity (Kaufmann, 2004; see Section 9.3.1).
Particularly for developing countries, the link between social and economic development and the need for modern energy services is evident. Access to clean and reliable energy constitutes an important prerequisite for fundamental determinants of human development, contributing, inter alia, to economic activity, income generation, poverty alleviation, health, education and gender equality (Kaygusuz, 2007; UNDP, 2007). Because of their decentralized nature, RE technologies can play an important role in fostering rural development (see Section 1.4.1.2).
The creation of (new) employment opportunities is seen as a positive long-term effect of RE both in developed and developing countries and was stressed in many national green-growth strategies. Also, policymakers have supported the development of domestic markets for RE as a means to gain competitive advantage in supplying international markets (see Sections 9.3.1.4 and 11.3.4).
