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Energy Price Increases and Macroeconomic Policy

Robert S. Pindyck

Year: 1980
Volume: Volume 1
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No4-1
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Abstract:
A rising world price of energy imposes a macroeconomic cost on the United States in two different ways. First, to the extent that energy is both an important input to production and a consumption good, with limited elasticities of substitution and demand, the economy's production and consumption possibilities are necessarily reduced as energy becomes more scarce. Thus, even if an expansionary monetary and fiscal policy were successful in pushing the economy close to its full capacity level, the resulting real national income would be lower than if energy prices had notAn earlier version of this paper was presented at the CEPR Conference on Energy Prices, Inflation and Economic Activity, Cambridge, November 9, 1979. Work leading to this paperwas supported by the Center for Energy Policy Research of the M.I.T. Energy Laboratory, and that support is gratefully acknowledged. In writing this paper, I benefited considerablyfrom conversations with and comments from Olivier Blanchard, Stanley Fischer, Benjamin Friedman, Robert Hall, Franco Modigliani, Robert Solow, and an anonymous referee.



Modeling Energy Demand and Socioeconomic Development Of Taiwan

Gwo-Hshiung Tzeng

Year: 1989
Volume: Volume 10
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No2-9
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Abstract:
Taiwan lacks a natural energy endowment. Its energy demands have dramatically increased with the growth of the economy and standard of living during the past two decades. Based on the new socioeconomic developmentpolicy for the next two decades, the government of Taiwan has devoted special attention and effort to improving various social and environmental problems affecting the country's overall quality of life. The increasing rate of household energy demand will slow down as the market for electrical appliances reaches a saturation point and as the energy efficiency of appliances is improved. Transportation policies call for energy conservation during the next two decades by raising energy use efficiency. The industrial sector has also implemented energy conservation measures by raising energy efficiency and by diagnosing and improving energy-use.





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