ArticlesEconomics

Economic Strategy for Import-Export Controls on Energy Materials

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Science  19 Apr 1974:
Vol. 184, Issue 4134, pp. 316-321
DOI: 10.1126/science.184.4134.316

Abstract

Five policy elements should be combined in assuring adequate energy supplies at acceptable costs: moving toward a more balanced distribution power between producing and consoming countries; developing a technological readiness for national energy independence; establishing desirable stocks and reserve productive capacity; relying on a flexible tariff system for linking domestic and world energy markets; and adopting an export strategy that supports the basic objective.

Two conditions are sine qua non's to any import-export strategy regarding energy materials. Policies must be clearly laid out and pursued with a steady hand in order that investors can afford to commit the vast sums necessary and expect recovery and adequate returns, typically spread over long periods of times. The policy package must be internally consistent, avoiding the conflicts and contradictions that so often have marred U.S. energy policy in the past.