Economic and public policy implications of energy pricing in Costa Rica

Thesis/Dissertation · Tue Dec 31 23:00:00 EST 1985

OSTI ID:5289320

Bourgoin, L

The methods used in examining the role of pricing in energy policy development may apply to many oil-importing countries with foreign exchange constraints. Data are developed by economic sectors on output plus on real factor inputs and factor wages for capital (by a perpetual inventory method), labor and useful energy (adjusted for efficiencies). A constant elasticity of substitution production model using 1965-1982 aggregate energy and nonenergy inputs is used to demonstrate the energy-economy linkages in Costa Rica. Estimates are from the best linear unbiased estimator and from the nonlinear system (structural form) of simultaneous equations jointly estimated by GLS multivariate methods. The elasticity of substitution is 0.98 using only energy source costs and about 0.87-0.89 using energy system costs. The macroeconomic impacts of energy taxation or subsidization in Costa Rica for the range of likely values of the elasticity of substitution suggest that a small energy tax would result in a net national economic gain. Eight energy policy proposals demand management interventions and supply-side enhancements) are formulated for Costa Rica and qualified for five broad criteria according to their likelihood of success. These are chosen since they are believed to promote socioeconomic efficiency, to be politically feasible, and to be administratively implementable; the anticipated degree of popular acceptance and the size of the impact vary.

• Research Organization: Harvard Univ., Boston, MA (USA)
• OSTI ID: 5289320
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
CENTRAL AMERICA
COSTA RICA
DEVELOPING COUNTRIES
ECONOMIC ANALYSIS
ECONOMIC ELASTICITY
ECONOMICS
ENERGY POLICY
ENERGY SUBSTITUTION EQUIVALENT
ENERGY SUPPLIES
GOVERNMENT POLICIES
LATIN AMERICA
PRICES
RECOMMENDATIONS