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Socio-Economic Goals in Energy Pricing Policy: A Framework for Analysis

  • Manmohan S. Kumar

Abstract

This chapter develops a framework for analysing the role energy pricing policy can play in serving socio-economic goals in the developing countries of Asia. A number of goals relating to economic growth, industrialization, inflation, employment, and equity can be affected by energy pricing. The chapter emphasizes the interdependence between these goals and the importance of taking into account the diverse implications of any particular pricing strategy. There are, of course, a number of other powerful instruments at the disposal of governments to attain the goals. At the same time, the pricing policy is also subject to constraints relating to the cost of energy, financing requirements, and the availability of foreign exchange. One of the main objectives of this chapter will be to examine whether the goals, subject to the constraints, could be significantly promoted by managing prices of energy as a whole, and of different types of fuels.

Keywords

Marginal Cost Income Distribution Foreign Exchange Price Strategy Energy Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© The East-West Center, Honolulu, and the United Nations, New York 1985

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  • Manmohan S. Kumar

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