You are in Home > News > Macroeconomic developments > Energy policy debate – thus far not considering macroeconomic facts
- Political stability
- Fiscal affairs
- Monetary policy
- Regulated markets
- Privatisation
- Macroeconomic developments
Energy policy debate – thus far not considering macroeconomic facts
submited on 30.06.2008 in category Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
submited on 30.06.2008 in category Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
Several things must be considered when making energy policy.
First, market is working. When a particular good becomes relatively scarcer price rise which restricts consumption. This is exactly what is happening on the single European market regarding oil products’ consumption – for the period 2001-2006 it remains unchanged despite economic growth. In fact, business and households making use of the help of investments and technologies begin to save energy.
This means, that the economy becomes less dependent on energy – to the opposite of proclaimed fears both by the EU and Bulgarian politicians. By the way, evidence can be found also in the juxtaposition between the 3 times more expensive in the last 5 years basic commodities (for example metals) and produced by them consumer goods, whose end prices are relatively stable (for example electronics).
Secondly, “energy dependence” is lacking of economic sense information. Natural resources are unequally distributed. Under a functioning market this supposes specialization.
Bulgaria is in no way en exception. The net import represents a half of the primary energy consumption in the country.
There are many local policies, which could ensure more market freedom in production, transmission and trade with energy. This stimulates innovation, diversification and efficiency.
First, market is working. When a particular good becomes relatively scarcer price rise which restricts consumption. This is exactly what is happening on the single European market regarding oil products’ consumption – for the period 2001-2006 it remains unchanged despite economic growth. In fact, business and households making use of the help of investments and technologies begin to save energy.
This means, that the economy becomes less dependent on energy – to the opposite of proclaimed fears both by the EU and Bulgarian politicians. By the way, evidence can be found also in the juxtaposition between the 3 times more expensive in the last 5 years basic commodities (for example metals) and produced by them consumer goods, whose end prices are relatively stable (for example electronics).
Secondly, “energy dependence” is lacking of economic sense information. Natural resources are unequally distributed. Under a functioning market this supposes specialization.
Bulgaria is in no way en exception. The net import represents a half of the primary energy consumption in the country.
There are many local policies, which could ensure more market freedom in production, transmission and trade with energy. This stimulates innovation, diversification and efficiency.
What is your opinion about this article?
0 agreed
0 disagreed