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An Integrated Framework for Energy Pricing in Developing Countries

Mohan Munasinghe

Year: 1980
Volume: Volume 1
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol1-No3-1
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Abstract:
In recent years, decisionmakers in an increasing number of countries have realized that energy sector investment planning and pricing should be carried out on an integrated basis, e.g., within the framework of a national energy master plan that determines energy policy, ranging from short-run supply-demand management to long-run planning. However, in practice investment planning and pricing are still carried out on an ad hoc and at best partial or subsector basis. Thus, electricity and oil subsector planning have traditionally been carried out independent of each other as well as independent of other energy subsectors. As long as energy was cheap, such partial approaches and the resulting economic losses were acceptable, but lately, with rising energy costs and changes in relative fuel prices



The Demand for Electricity Services and the Quality of Supply

Romesh Dias-Bandaranaike and Mohan Munasinghe

Year: 1983
Volume: Volume 4
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol4-No2-5
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Abstract:
The spiraling costs of energy within the last decade have stimulated renewed interest in the increased efficiency of energy production and consumption.' Electricity is a relatively mature sector where considerable theoretical work on the economic aspects has been carried out since the 1950s.2 While the microeconomic principles underlying optimal investment planning and pricing policy have received much attention in the recent literature, less effort has been devoted to the effects of quality of supplyand output reliability.



The Energy Research Group and Its Work

Mohan Munasinghe

Year: 1987
Volume: Volume 8
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-NoSI-1
No Abstract



Energy R & D Decionmaking in Developing Countries

Mohan Munasinghe

Year: 1987
Volume: Volume 8
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-NoSI-8
No Abstract





Energy Economics in Developing Countries: Analytical Framework and Problems of Application

Mohan Munasinghe

Year: 1988
Volume: Volume 9
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol9-No1-1
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Abstract:
The pervasive and vital role of energy in national economies indicates that the identification of energy issues and energy policy analysis and implementation are important areas of study. While the drop in world oil prices which began in 1986 has provided some relief to the economies of oil-importing nations, energy-related problems still preoccupy the minds of decision-makers in most developing countries. Thus, while most of the key energy issues identified during the past decade persist, the availability of adequate energy resources at reasonable cost remains a vital precondition for continued economic growth. Typically, energy investments still account for about 25 percent of total public capital investments in developing countries.



Integrated Resource Planning with Environmental Costs in Developing Countries

Chitru S. Fernando, Paul R. Kleindorfer and Mohan Munasinghe

Year: 1994
Volume: Volume15
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No3-6
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Abstract:
This paper presents an integrated approach to dealing with the twin problems of environmental degradation and capital costs associated with the rapid expansion of electric power in developing countries. The integrated resource planning framework developed here calls for a careful balancing of supply and demand side options. Interruptible technologies are an important option in those developing countries where capital is scarcer and shortage costs are higher. When environmental costs of conventional generating technologies are included, the balance shifts even further in favor of demand side measures. This integrated perspective at the planning phase must be complemented by pricing policies that accurately reflect the cost of providing electric power, and organization structures that provide strong incentives for efficient operation.



Greenhouse Gas Emission Reduction: A Case Study of Sri Lanka

Peter Meier and Mohan Munasinghe

Year: 1995
Volume: Volume16
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol16-No4-4
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Abstract:
In this paper we describe a case study for Sri Lanka that explores a wide range of options for reducing greenhouse gas (GHG) emissions. Options range from renewable technologies to carbon taxes and transportation sector initiatives. We find that setting electricity prices to reflect long-run marginal cost has a significant beneficial impact on the environment, and the expected benefits predicted on theoretical grounds are confirmed by the empirical results. Pricing reform also has a much broader impact than physical approaches to demand side management, although several options such as compact fluorescent lighting appear to have great potential. Options to reduce GHG emissions are limited as Sri Lanka lacks natural gas, and nuclear power is not practical until the system reaches a much larger size. Building the few remaining large hydro facilities would significantly reduce GHG emissions, but these would require costly resettlement programs. Given the inevitability for fossil-fuel baseload generation, both clean coal technologies such as pressurized fluidized bed combustion, as well as steam-cycle residual oil fueled plants merit consideration as alternatives to the conventional pulverized coal-fired plants currently being considered Transportation sector measures necessary to ameliorate local urban air pollution problems, such as vehicle inspection and maintenance programs, also bring about significant reductions of GHG emissions.





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