Dr. Munasinghe emphasizes the importance of coordinated energy
planning and pricing in less developed countries with particular
reference to the interrelationships among the pricing policies
adopted in various energy subsectors--electric power, petroleum,
natural gas, coal, and traditional fuels (e.g., firewood, crop
residues, and dung). In less developed countries the already
complex problems typically faced by energy planners are exacerbated
by high levels of market distortion, shortages of foreign exchange
and resources for development, large numbers of poor households
whose basic needs must be met, reliance on traditional fuels, and a
relative paucity of energy data. The principal investment issues
surrounding energy planning and the extent to which they influence
pricing policy are also discussed.
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