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Structural Analysis of the Impacts of Deregulation on the Amount and Efficiency of Energy Consumption

Yohannes K.G. Mariam

Abstract



There have been significant changes in the energy sector since the early 80's. These changes in part caused by federal or state level polices, were intended to either protect consumers, the environment or promote economic growth. Regardless of the reasons for the implementation of initiatives or policies, deregulation and restructuring of the energy sector is being pursued by several states. International forces that govern the supply and demand of global energy also influence the domestic structural changes. Structural analysis is useful to compare important parameters between two time periods to infer whether or not the implementation of policies and regulations have resulted in significant changes. The findings from this kind of analysis will assist in strengthening or re-defining previously implemented policies. Analysis of the impact of policies on amount and efficiency of energy consumption is important for the following reasons: i) appropriate remedial measures could be put in place to minimize the impact of emissions and wastes that originates from the consumption of energy, ii) plans could be designed to promote and implement sustainable consumption of energy because it is the most important driving force of the economy and it greatly impacts the survival of human beings. The results from this kind of study, therefore, are useful for private and public policies making that are intended to balance economic growth with environmental and human health.

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