This paper revisits the roles that energy plays in poverty reduction. First, while energy does not reduce poverty itself, it delivers energy services. These services can improve poor people's welfare both directly by enhancing their own productivity, education and health, and indirectly by changing the economy around them. The paper provides a simplified framework for thinking about these energy services, and then reviews the literature on their importance to poverty reduction. From this framework, we draw a series of three important conclusions about energy priorities and their implications for poverty reduction and development.
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