This analysis of the Administration's energy plan concludes that the strategies proposed would be effective in reducing energy use and dependence on oil imports, but that the estimate of the magnitudes of import savings are overoptimistic. This report analyses 5 major sets of proposals: pricing of crude oil; pricing of natural gas; conversion to coal; automobile-related proposals, and tax credits for home insulation and solar heating equipment. The long-run (the growth in oil and gas consumption exceeds the growth in reserves) and short-run problems (U.S. imports of oil have increased substantially) have created the need for a national energy plan. The major reason for dependence on imports is the system of price controls on oil and gas which have kept the domestic price of these fuels below world levels. Three strategies have been proposed to reduce dependence on imports: reduce long-term growth in energy demand by imposing excise taxes that would raise the price of petroleum; increase large industries' and utilities' use of coal instead of oil or natural gas by taxing their use of the latter fuels; and increase domestic supplies by reintroducing market pricing or near market pricing for truly new energy supplies. An important element of the proposal is the effort to raise the price of petroleum and natural gas by predictable increments so that consumers and businesses can make decisions on the basis of higher future energy prices. Energy price increases under the plan would be achieved mainly by a system of taxes to be rebated to customers.

  • Corporate Authors:

    United States Congress

    Congressional Budget Office
    Washington, DC  United States  20510
  • Publication Date: 1977-6

Media Info

  • Features: Tables;
  • Pagination: 154 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00167865
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 7 1981 12:00AM