Energy Policy: An Optimal Allocation Approach

Any system of ideas which underlies economic policyrecommendations needs to be made explicit so that its doctrinal premisemay be examined and debated. Section I of this paper, therefore,explicitly states the philosophical under -pinning of this study.Section 2 presents the central energy problem in a general mathematicalform whereas the solution of the specific energy problem for thePakistani economy is presented in Section 3, in which policy guidelinesfor obtaining the desired solution have also been discussed. Finally,Section 4 briefly presents our concluding remarks.