The Economics of Energy Transition

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides a structured overview of energy transition economics, useful for framing research on investment and policy.

🏢実務担当者:Helps corporate sustainability teams understand the economic rationale and investment landscape for transition planning.

🏛政策担当者:Offers a framework for designing policies that balance costs, benefits, and capital mobilization.

Chapter 3 is written by Nima Farrahi and is titled “The Economics of Energy Transition”. The author gives an economic take on the energy transition, explaining that ‘the energy transition is not solely a matter of environmental necessity’ but also ‘an economic challenge – one that requires unprecedented levels of investment in renewable energy technologies, modern infrastructure and innovation’. He explains the four dimensions of the economic challenges: (i) direct and incidental costs, (ii) who bears the costs and how they are distributed, (iii) the issue of benefits, and (iv) mobilizing sufficient capital. He explains that there are both economic challenges and opportunities, cautioning that effective design is crucial to accelerate energy transition and minimize economic disruption. In his chapter, he covers the investment landscape through investment trends, regional disparities, and investment needs and gaps. He articulates the theoretical foundations of energy economics, including by explaining energy as a factor in economic growth and outlining energy pricing mechanisms. He then gives an overview of the economic impacts of the energy transition – including costs of climate inaction and investment requirements and the benefits of it.

• openalex https://doi.org/10.4324/9781003536567-4first seen 2026-08-10 04:44:14