Energy for the new millennium

The evolution of thinking about energy is discussed. When the authors began collaborating 20 years ago, energy was typically considered from a growth- oriented, supply-side perspective, with a focus on consumption trends and h ow to expand supplies to meet rising demand. They were deeply troubled by t he environmental, security and equity implications of that approach. For in stance, about two billion people lack access to affordable modern energy se riously limiting their opportunities for a better life. And energy is a sig nificant contributor to environmental problems, including indoor air pollut ion, urban air pollution, acidification, and global warming. The authors sa w the need to evolve a different perspective in which energy is provided in ways that help solve such serious problems. They argued that energy must b ecome an instrument for advancing sustainable development-economically viab le, need-oriented, self-reliant and environmentally sound development-and t hat the focus should be on the end uses of energy and the services that ene rgy provides. Energy technological options that can help meet sustainable d evelopment goals are discussed. The necessity of developing and employing i nnovative technological solutions is stressed. The possibilities of technol ogical leapfrogging that could enable developing countries to avoid repeati ng the mistakes of the industrialized countries is illustrated with a discu ssion of ethanol in Brazil. The role foreign direct investment might play i n bringing advanced technologies to developing countries is highlighted. Ne ar-and long-term strategies for rural energy are discussed. Finally, policy issues are considered for evolving the energy system so that it will be co nsistent with and supportive of sustainable development.