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Pakistan’s Energy Sector Issues: Energy Efficiency and Energy Environmental Links

Author

Listed:
  • Tariq Husain

    (Former Director, World Bank.)

Abstract

This paper analyzes Pakistan’s energy sector issues and highlights (i) the importance of the link between energy and the environment, and (ii) the central importance of energy efficiency for high return demand-side solutions to meet the country’s energy needs. The paper argues that energy planning should integrate the external cost of energy use in deciding about the composition of supply: coal, oil, gas, hydropower, renewable, nuclear, and solar. By utilizing external cost estimates made by the European Commission for Europe, and the US National Academy of Sciences, a total cost (external + internal) ranking of primary energy sources for Pakistan is estimated. This estimate is at the low end of the cost spectrum because classic pollutants—sulfur dioxide, nitrogen oxides, carbon monoxide—in Pakistan are significantly higher than in Europe or the US. The paper also discusses the experiences of China and OECD countries in increasing energy-wide efficiency. A central lesson emerging from the analysis is that Pakistan will have to significantly increase its energy-related research and development expenditure in order to adequately address its energy sector issues. A quadrupling from 0.25 % of gross domestic product is recommended over a decade.

Suggested Citation

  • Tariq Husain, 2010. "Pakistan’s Energy Sector Issues: Energy Efficiency and Energy Environmental Links," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(Special E), pages 33-59, September.
    • Handle: RePEc:lje:journl:v:15:y:2010:i:sp:p:33-59
    as

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    File URL: http://121.52.153.179/JOURNAL/LJE%2015,%20SE/03%20Dr%20Tariq%20Husain%20EDITED%20TTC%2011-10-10.pdf
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    References listed on IDEAS

    as
    1. World Bank, 2009. "World Development Indicators 2009," World Bank Publications - Books, The World Bank Group, number 4367.
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    Citations

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    Cited by:

    1. Rafi Amir-Ud-Din, 2014. "From Energy Blues to Green Energy: Options Before Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(4), pages 309-325.
    2. Akhter Ali & Dil Bahadur Rahut & Khondoker Abdul Mottaleb & Jeetendra Prakash Aryal, 2019. "Alternate energy sources for lighting among rural households in the Himalayan region of Pakistan: Access and impact," Energy & Environment, , vol. 30(7), pages 1291-1312, November.

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    More about this item

    Keywords

    Energy; policy; environment; Pakistan.;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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