Quality of institutions, not just innovation, promotes energy progress

03/6/2014 | Forbes

While technological innovations have brought about the U.S. shale revolution, the quality of a country's institutions also determines the trajectory of its progress in developing shale energy, writes energy and natural resources expert Peter Kaznacheev. In nations such as the U.S., Canada and Australia, energy firms enjoy secure property rights, transparent policies and reduced red tape, which create a favorable business climate, Kaznacheev adds. "An often overlooked important lesson of the 'shale revolution' is that it's the quality of institutions that determines whether natural resource abundance boosts or stifles innovation, growth and development," he writes.

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