Economic Rents and the Power of Scarcity

  • Srinivasan Sunderasan
Part of the Green Energy and Technology book series (GREEN)


The previous chapter dealt with the power of choice and concluded that development policy should ensure that the end-users are adequately informed and empowered to make choices for themselves. In the medium-term, fiscal and financial incentives should be geared towards bringing about sufficient awareness and in supporting, rather than supplanting, existing distribution channels for technology options or for financing. In a similar vein, the next chapter analyzes the power of scarcity and highlights the backward drift of surpluses to the owners of the scarce resources: sugarcane farmers in the case of the sugar industry. Even as the sugar industry is studied in detail, the central theme pertaining to scarcity rents is equally applicable to the solar PV industry (silicon wafers), wind energy sector (turbines and sites), small hydro sector (hydro-mechanical equipment and sites) etc.


Sugar Industry Command Area Sugar Mill Captive Area Sugarcane Farmer 
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© Springer-Verlag London Limited 2011

Authors and Affiliations

  1. 1.Verdurous Solutions Private LimitedKuvempunagar, MysoreIndia

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