The energy constraint and development Consistency and optimality over time

Energy shortages and related declines in the foreign exchange earnings of developing countries have combined to impede these countries' development efforts. Two approaches are presented to evaluate the impact of these developments and to suggest alternative strategies to cope with these shortages. The first approach develops a dynamic input-output framework within which plan targets are evaluated. The second approach details the optimal response of the economy operating under an energy constraint that is specified in a number of ways to capture technological change and alternative domestic energy sources.