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The demand for energy is increasing in the world as the world's population expands, and technology keeps surging.This requires significant investment in the energy sector to keep pace with the increasing demand.In this chapter, we document the different forms of energy projects such as power generation and renewable energy infrastructure and how to raise funds to finance them.Some of the funding sources discussed include debt finance, equity finance, private capital, blended finance, and public private partnership finance.We also discuss the role of ESG in financing energy projects and why energy firms need to incorporate ESG practices when dealing with energy projects.In terms of ESG, we conclude that international financial institutions such as multilateral institutions and development finance institutions must critically assess energy projects’ ESGs certifications before funding them.We recommend that energy projects must have an ESG buy-in from indigenes before they are cleared to be financed.Finally, both the public and private sector must collaborate to finance energy projects since they are highly capital intensive.

Sustainability management in the oil and gas industry in emerging and developing countries has become essential to the sustainable development discourse because of the growing interest regarding the compatibility of the industry to a sustainable future. This chapter examines the management of environmental and sustainability issues in oil and gas industry in developing countries. The chapter comprises five sections. The first section presents the introduction and overview of the oil and gas industry in Africa. The second section presents sustainability challenges of the industry. The third section discusses environmental governance, ethics, and management of environmental impacts. The fourth section discusses how environmental impacts of the oil and gas industry are being managed and the regulatory framework for pollution prevention. The fifth section highlights corporate environmentalism in industry, the efforts to reduce pollution, and the greening of the sector. The chapter reveals that although the oil and gas sector has improved the economies of most developing countries over the years, the oil and gas sector activities have had significant environmental impacts. The chapter notes that several pressures from regulators and individuals force firms to behave ethically. What has helped mitigate the effect of the activities of the industry is the sense of duty towards the environment.

The world, since the industrial revolution, has relied significantly on oil and gas (O&G) resources to fuel, especially for its industrial and transportation activities. The major consuming block for oil before 2012 was always the Organization for Economic Cooperation and Development (OECD) countries, which are more industrialised relative to countries in the non-OECD block. In most emerging and developing countries (EDCs), when O&G resources are discovered, they are often quick to extract these resources with the aim of rapidly growing the economy, reducing poverty, and gaining some political capital without a careful management plan. Despite the transition to low carbon economy being underway along with the associated increased interest in renewable energy sources globally, especially among policymakers and investors in developed countries, demand for O&G resources will continue to surge due to growing demand from EDCs such as China, India, South Africa, and Brazil.

Notwithstanding the importance of fossil fuels, increasing environmental concerns are gradually shifting the focus to natural gas due to its environmental advantages. This chapter discusses contributions of the natural gas sector in emerging and developing countries (EDCs) and the hindrances encountered. The key findings are that natural gas (NG) reserves in EDCs have potential to promote growth and that exports of NG contribute significantly to revenue and employment generation. Thus, policy measures should be designed to help to create forward and backward linkages in the NG sector in EDCs. Again, EDCs should continue to use a fiscal partnership regime and the adoption of a sovereign wealth fund approach for sustainable management of natural gas resources.

The oil and gas industry is a complex sector with significant reach in terms of providing the energy needs of the global economy and the security, environmental and development consequences thereof. In particular, the sector is extremely important for the economic growth of emerging markets and developing countries. Furthermore, the life span of oil and gas resources is finite, with high health and safety risks and substantial environmental costs that require careful management and sustainability practices to ensure optimal extraction and utilisation of these resources. This book examines the challenges and opportunities in the oil and gas industry, in the context of emerging markets and developing economies. It provides comprehensive coverage of the management and sustainability practices of the sector, the environmental impact and sustainability of resources as well as the businesses that operate in the sector across the entire value chain. It addresses the current discourse on topics such as the Sustainable Development Goals, the Green Economy, the Paris Agreement and Glasgow Climate Pact and concludes with a chapter on the future of the oil and gas industry. The discussions around energy and energy transitions in particular continue to gain momentum and the book provides a wide-reaching and up-to-date overview of the industry. The book introduces readers to the concepts and formal models of analysis in the oil and gas sector and will serve as a useful resource for students, scholars and researchers in operations, marketing, procurement and supply chain management, project management, health and safety management, environmental economics, natural resource economics, development finance, and development studies. Researchers and practitioners working in these areas will also find the book a useful reference material.

Population growth, quest for value addition via industrialisation, and increasing demand for personal vehicles in emerging and developing regions such as Africa are leading to growth in demand for refined oil products and creating revenue generation potentials for the refining industry, despite the increasing environmental concerns. This chapter discusses key factors that determine the siting of a refinery, the input-output of a refinery, the refining margins, health and safety issues of the industry, and the trends in the refining business. It thus highlights the constraints and opportunities in Africa’s oil refining industry.

Oil and gas are important natural resources and have propelled economic growth and increased the global competitiveness between producing nations in global trade and resulted in the associated advantages to domestic economies. This chapter examines the future of the oil and gas industry in emerging and developing countries. It discusses the exploration of oil and gas and how the environment is being impacted by the activities. The chapter looks at the role of market players along the value chain of the oil and gas sector. It then examines how the world is being transitioned to renewable energy use through an analysis of demand trends and challenges confronting the oil and gas industry. It makes the case that despite the immeasurable contributions of the oil and gas sector to the development of the global economy, there have been systemic shifts in their demand in recent times. High cost of capital requirements in oil and gas production, climate change effects and global warming, deprivations and community conflicts, and technological advancements account for these shifts in the demand trends of oil and gas.

In this study, using hourly data from a representative sample of Swedish households on standard tariffs, we investigate the welfare and emission implications of moving to a mandatory dynamic pricing scheme. We allow demand during different hours of a day to affect utility differently, and account for the derived nature of electricity demand by explicitly accounting for the services (end-use demands) that drive hourly electricity demand. We use the flexible Exact Affine Stone Index (EASI) demand system, which accommodates both observed and unobserved heterogeneity in preferences, to understand changes in load consequent to hourly retail pricing. Our findings suggest that, following hourly retail pricing, changes in load patterns across hours are relatively small: total load changes by less than one percent. There are correspondingly small reductions in welfare and carbon emissions, of less than 0.2 percent and 0.47 percent, respectively. Overall, in the context of a decentralized, competitive retail electricity market-setting, our results suggest that the benefits to ensuring that the retail price of electricity reflects the hourly marginal cost is small, at least in the short run.

This paper examines convergence in environmental/carbon performance by constructing a measure based on production theory, where production processes explicitly result in the production of two outputs; a good output (GDP) and a bad output (CO2). We use the derived measure to test the beta-convergence hypothesis for a panel of 94 countries. The results reveal evidence in support of beta-convergence in environmental, or carbon performance for the entire (global) sample and each of the sub-samples. The evidence points to a slower convergence rate for the high-income countries relative to low-income countries. Moreover, the rate of convergence does not vary with capital in the global sample, but does vary in the high-income sample, possibly reflecting differences in abatement cost induced by differences in the stringency of environmental regulation and enforcement. Additionally, we find evidence of a negative relation between environmental performance and fossil fuel share, both at the global level as well as at the middle and high sub-samples, which tend to vary with capital intensity. As such, the results conform to the results from studies on the dynamics of per capita emissions.

This paper examines convergence of per capita carbon dioxide (CO2) emission for a panel of 124 countries taking into account the impact of economic growth and the quality of government institutions. The analysis builds on both parametric and non-parametric panel data techniques, and we examine the β-convergence hypothesis in a neoclassical growth model setting with institutional quality as one of the independent variables influencing both emissions and output growth. The results reveal evidence in support of β-convergence of per capita CO2 emissions for the global sample, and for the sub-samples comprising OECD versus non-OECD countries and high- versus low-income countries, respectively. There is, however, heterogeneity in β-convergence and it tends to vary with the level of the initial per capita CO2 emissions. We also report evidence of a negative direct effect of institutional quality on growth in per capita CO2emissions, especially for the global and high-income samples. However, institutional quality also promotes economic growth, thus generating a positive indirect effect on emissions growth. Overall the empirical results suggest a positive net effect of institutional quality on growth in per capita CO2 emissions in the global sample. Finally, the non-parametric approach reveals some evidence of bias in the parametric approach, in particular in the case of the estimates for the convergence parameter at either end of the distribution.