Using a multidisciplinary approach that draws on their in-depth experience in the fields of energy, environment, and economics, the authors develop a comprehensive analytical framework. They apply their methodology to four detailed studies of Sri Lanka’s energy sector, which illustrate how to address key energy and environmental policy issues found in many developing countries today. Supplementary case examples are presented which also draw on many other countries in Asia and Africa. The main energy-related areas discussed include electric power, new and renewable energy sources, transport and oil-based fuels, and greenhouse gas emissions. The methodological tools of energy and environmental economics provide a rational basis for identifying policy priorities, evaluating them, and developing more sustainable energy options. The results of the studies are presented in an integrated manner, and contribute to the practical resolution of many important public policy issues. How to deal with risk and uncertainty, and how to identify robust policy options, are major themes that run throughout the volume. Energy and environmental economists, and graduate students interested in an introduction to the analytical methods used in recent World Bank projects on renewable energy and sustainable development will find this book of great value, as will decision-makers and policy analysts in developing countries.