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This chapter attempts at disentangling the multiple contrasting interactions between economic conditions and energy transitions. It goes without saying that the net effect, resulting from the balance of such multiple contrasting interactions, is extremely difficult, or even impossible to predict. It very much depends on the specific characteristics of the economy facing the need to decarbonize, notably its current energy system, rate of growth of energy demand, available energy resources, and opportunities for decarbonization. All of these parameters are extremely variable country by country. It also greatly depends on the specific transition path pursued, and especially the intended speed of the transformation. This chapter lays special emphasis on the need to shift resources from consumption to investment and the consequent increase in the capital-output ratio, which has also consequences for the distribution of income.

This chapter argues that pricing mechanisms are a key element of gas trade, as they concur to determine price levels and define commercial strategies. It explains why gas suppliers traditionally defended long-term oil-indexed contracts and analyses the main features of historical contracts. The old consensus on oil indexation, which had been a pillar of international gas trade for a decade, has been eroded in several regions. The chapter discusses how more impersonal market exchange now prevails. Beyond Europe and North America, Asia is also gradually moving towards a larger share of hub indexation, although it is still lagging behind in the process of establishing its own hubs. The chapter concludes that gas prices remain regional even if additional convergence is materialising thanks to the globalising effect of flexible LNG.

This chapter provides an introduction to the economics of electricity generation, presenting the major economic differences between the multiple power generation solutions and highlighting the comparative advantages and disadvantages of each. In order to provide a satisfactory treatment of power generation technology and economics, a single chapter would have expanded beyond a practical dimension: accordingly the discussion has been divided into a general introduction and a sequence of specific chapters each devoted to a different generation solution: thermal power based on fossil fuels (coal, oil, and gas), thermal power based on nuclear fission, hydroelectricity chapter, solar power, wind power, geothermal power, and power from tides and waves. The present introductory chapter explains where on the load curve the different power generation options should be placed depending on costs, the issue of dispatchability, as well as the difference in the economic cost approach between dispatching and future capacity planning. Also flexibility mechanisms to integrate a large share of non-dispatchable renewable energy sources are discussed. Finally, issues related to space occupation and locational constraints are addressed.

When can oil economies be deemed sustainable? We did not expect to find an unequivocal and final answer to this question when we set out collecting the chapters of this book, and in fact do not believe that an unequivocal and final answer exists. Our more modest purpose was to question a stereotype—that all Gulf economies are not sustainable—and start a critical discussion of what these economies and polities should do to guarantee themselves a relatively stable future.

Microorganisms are employed to mine economically important elements from rocks, including the rare earth elements (REEs), used in electronic industries and alloy production. We carried out a mining experiment on the International Space Station to test hypotheses on the bioleaching of REEs from basaltic rock in microgravity and simulated Mars and Earth gravities using three microorganisms and a purposely designed biomining reactor. Sphingomonas desiccabilis enhanced mean leached concentrations of REEs compared to non-biological controls in all gravity conditions. No significant difference in final yields was observed between gravity conditions, showing the efficacy of the process under different gravity regimens. Bacillus subtilis exhibited a reduction in bioleaching efficacy and Cupriavidus metallidurans showed no difference compared to non-biological controls, showing the microbial specificity of the process, as on Earth. These data demonstrate the potential for space biomining and the principles of a reactor to advance human industry and mining beyond Earth., Rare earth elements are used in electronics, but increase in demand could lead to low supply. Here the authors conduct experiments on the International Space Station and show microbes can extract rare elements from rocks at low gravity, a finding that could extend mining potential to other planets.

Gulf oil economies are commonly deemed not sustainable, but is this justified? Measurable and significant diversification of the Gulf economies has taken place. More is needed but the process is continuing. Global demand for hydrocarbons will not disappear overnight. The Gulf economies have ample opportunities to develop renewable sources, and decarbonize their oil production through carbon capture and sequestration. The progressive transformation of crude oil and gas into non-fuel products or hydrogen, and the possible advent of a hydrogen economy, may eventually eliminate emissions from burning hydrocarbons directly. The oil rent is likely to shrink, and greater reliance on taxation of domestic value added will be necessary. For that, a genuinely independent and competitive private sector must develop, which is capable of walking on its own legs and not depend solely on government procurement. Finally, social and political cohesion requires that greater attention be paid to employment of nationals and income distribution.

When can oil economies be deemed sustainable? This complex question has been profusely debated in the last 5 years. The timing of this debate is no coincidence. On the one hand, the pace of environmental degradation has aggravated, in terms of air pollution, carbon emissions and the impacts of the planet’s warming. On the other hand, volatile international oil markets and the acceleration of the energy transition have challenged the notion that oil revenues are sufficient to sustain oil economies in the near to medium term. With current challenges predicted to pursue in the near future, a more in-depth discussion about sustainability is warranted.

Microorganisms perform countless tasks on Earth and they are expected to be essential for human space exploration. Despite the interest in the responses of bacteria to space conditions, the findings on the effects of microgravity have been contradictory, while the effects of Martian gravity are nearly unknown. We performed the ESA BioRock experiment on the International Space Station to study microbe-mineral interactions in microgravity, simulated Mars gravity and simulated Earth gravity, as well as in ground gravity controls, with three bacterial species: Sphingomonas desiccabilis, Bacillus subtilis, and Cupriavidus metallidurans. To our knowledge, this was the first experiment to study simulated Martian gravity on bacteria using a space platform. Here, we tested the hypothesis that different gravity regimens can influence the final cell concentrations achieved after a multi-week period in space. Despite the different sedimentation rates predicted, we found no significant differences in final cell counts and optical densities between the three gravity regimens on the ISS. This suggests that possible gravity-related effects on bacterial growth were overcome by the end of the experiment. The results indicate that microbial-supported bioproduction and life support systems can be effectively performed in space (e.g., Mars), as on Earth.

Two conflicting narratives are frequently heard in connection with the economic impact of the energy transition. The first has it that the transition is a great opportunity to revitalize economic growth and increase employment. The second, in contrast, estimates that objectives like reaching carbon neutrality by 2050, as pledged by the European Union, would be “too expensive.” Which is right?

This chapter looks at the role of oil in the political economy and the international relations of the Middle East. Oil is commonly considered a political commodity. Because of its pivotal importance as a primary source of energy, governments are concerned with its continued availability and seek to minimize import dependence. Historically, interest in oil — especially in the United Kingdom and the United States — strongly influenced attitudes towards the Middle East and the formation of the state system in the region, following the collapse of the Ottoman Empire. Oil also affects the power balance within the region. The polarization in the region between oil-rich and oil-poor states is thus an essential tool of analysis. The parallel distinction between rentier and non-rentier states helps to explain how oil affects the domestic political development of the oil-rich states and influences their regional relations.

Democratic transitions since 2011 in the Middle East and North Africa have mostly failed to consolidate and have been hindered by the difficult economic heritage of previous authoritarian governments. Which short-term economic policies may help consolidate the early democratisation process?

In the past five years, the member countries of the Gulf Cooperation Council (GCC) have shown growing interest in acquiring a nuclear component to their power generation fleet. Initially, there was...

Price volatility is a major problem for all commodity exporters because it translates into direct or indirect volatility of government revenue. Should a developing country's state be responsible for isolating the domestic economy from the consequences of fluctuating international commodity prices? This article argues that this is an essential function of the state and a crucial component of its legitimacy. Recently, the establishment of stabilization funds has been regarded as an essential component of good governance, notwithstanding the persistence of major problems. As an alternative, this article proposes the use of resource revenue for establishing endowments of autonomous public institutions with well-defined developmental goals, or furnishing the equity for strategically important commercial corporations. The latter opens the door to an interesting perspective on the potential path toward progressive democratization of the rentier states.

Several Arab countries have recently manifested an interest in civilian nuclear energy. For some, like Egypt, this is the revival of an old interest, for others, notably the members of the Gulf Cooperation Council (GCC), it represents a clear reversal of previously held positions. This interest has been interpreted as an implicit threat to move in the direction of acquiring a military nuclear capability, in case Iran develops a bomb. Instead, the article argues that interest in nuclear energy has strong economic motivations for all Arab countries, although the position of the GCC is quite different from that of North Africa and Levant countries, from the point of view of both the cogency of motivation and the ability concretely and rapidly to launch a civilian nuclear program.

This article discusses the evolution of the Italian legal and regulatory framework in the energy sector. After a description of the liberalisation and decentralisation undertaken, it raises a few issues and questions about the future course of Italian energy policy and in particular whether an international side can be revived in the near future.

The tension between the sovereign state and the multinational corporation has long been in focus. Globalization — the progressive opening of markets to the free circulation of goods, services and capitals (not necessarily individuals) — has been perceived as limiting the power and sovereignty of states. In a globalized world, governments are increasingly obliged to compete with each other to attract investment and foster the competitiveness of their industry through progressive deregulation, that is, simplification or outright abolition of all sorts of rules that states may have imposed over time to pursue various objectives deemed in the collective interest. Through competition, states may be expected to progressively self-limit their intervention tools and their penetration of economy and society, leaving a free hand to market forces and corporate actors.