ECO14: End-use energy prices by fuel and by sector Brief Definition Actual prices paid by final consumer for energy
with and without taxes and subsidies
Units US dollars (purchasing power parity [PPP]) per unit
of energy (different units)
Alternative Definitions None
Agenda 21 Chapter 4: Consumption and production patterns
POLICY RELEVANCE (a) Purpose: This indicator reflects the final price paid by consumers for energy
services. Energy prices are driving forces for incentives or disincentives for
consumption or conservation, or efficiency improvements. Also, prices can affect
affordability.
(b) Relevance to Sustainable Development: Energy prices can be regulated to
internalize environmental and social costs, to manage demand and to encourage
development of alternative renewable energy options.
For developing countries, there is a need to increase energy availability and
affordability, in particular for the lower-income groups of the population, so as to
improve social and economic development. At the same time, efficient energy use in
developing and developed countries is a major priority. Appropriate pricing
mechanisms may be used to overcome inefficiencies.
(c) International Conventions and Agreements: None.
(d) International Targets/Recommended Standards: No international targets have
been established. However, it is widely accepted that external costs of energy
production and use should be internalized. Furthermore, the Johannesburg Plan of
Implementation agreed at the World Summit on Sustainable Development calls for a
phasing-out of environmentally harmful subsidies.
(e) Linkages to Other Indicators: Related indicators of the economic dimension are
annual energy use per capita, intensity of energy use, energy mix and emissions of
greenhouse gases. This indicator is also linked to social indicators such as share of
household income spent on fuel and electricity.
