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Energy Policy, Vol.27, No.11, 625-636, 1999
An appropriate mechanism of fuels pricing for sustainable development
In this work the authors, after a brief outlook concerning the markets of main energy commodities, propose an alternative mechanism for fuel pricing consisted with a sustainable development. Technological change and technological pluralism, costs and environmental issues are the benchmarks of the discussion developed. The two mechanisms here proposed for fuel pricing try to encompass all these aspects stressing the scarcity concern, not only under a merely-based resource point of view, but emphasizing also the technological variable as the first one to take into consideration. In fact, technology, the mean by which resources are transformed into usable services (energy forms), is strictly linked to its limits (above all productivity, efficiency and environmental effects) and cannot be any more considered only following the classical principles of the lowest cost of utilization without evaluating the other aspects related to the goals of sustainable development, widely shared at the international level. Furthermore, taking into consideration that some estimates of petroleum life expectancy calculate about 40-50 yr of consumption (at current rates of demand), a new mechanism to consider the right value of this resource (and, consequently, all energy commodities) is necessary. Without any pretension of exhaustion of the topic, this work seems to be in line with this perspective, trying to apply all these principles to price fuels.