This book investigates how resource misallocation theory can be applied to energy economics. This chapter details how the theory developed and gives real-world examples of its use. The book analyzes the impact of resource misallocation on energy efficiency and green transformation, providing an essential reference for policy guidance. It underscores the significance of adequately channeling resources to promote sustainable energy consumption and create conditions conducive to transitioning towards more environmentally friendly economies. The book provides a transdisciplinary approach that leads to comprehensive analysis and answers the questions faced by governing authorities who make decisions in terms of not only resources, energy, and environmental sustainability.