Energy Economic Planning in the Developing Countries: A Cenceptual for India
Developing countries have been adversely affected by the four-fold increase in oil prices of late 1973. As Energy sectors and other economic sectors are competing for the limited investible resources, increasing energy import and development costs might constrain the economic growth rate in the developing countries in the foreseeable future. Integrated planning for energy and non-energy sectors should be given high priority in these countries to analyse energy policy and development plans within a framework of economic planning. The methodologies used for energy sector planning are not usually applicable to the developing countries due to various reasons. The present paper describes an approach for integrated Energy-Economic Planning for the developing countries and illustrates this approach in the Indian context. An Energy-Economic Planning Model is considered for India, linking a macro-economic input-output model with Energy Supply Models representing production/conversion and transportation activities and Energy Demand Forecasting Models through an Energy Impact Model. The objective is to determine optimal energy sector development plans for meeting energy demands from productive activities and final consumption, based on alternative future growth scenarios. The Impact of the energy sector on the economy would also be analysed in the Energy-Economic Modelling framework.
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