The energy constraint in the 1980s and the scope for import substitution in Western Europe

Various policies are being proposed for reducing the energy dependence of Western Europe during the 1980s. This paper discusses their impacts through the use of a simple simulation model under different assumptions concerning energy prices conservation measures and overall economic growth. It also assesses broad energy prospects for three regions of Western Europe up to 1990. In particular, the paper analyzes the scope for substituting domestically produced energy for imported energy. Tentative policy recommendations are presented following presentation of the results. Preference is expressed for combined price-cum-rationing measures. Coordinated and generalized energy consumption policies, so as to improve the energy efficiency for both intermediate and final uses, are also discussed.