Energy Indicators for Sustainable Development ... - IAEA Publications

• World Bank, various editions. World Development Indicators. Publishedannually. Washington DC, USA: World Bank.ECO14: End-use energy prices by fuel and by sectorBrief DefinitionUnitsAlternative DefinitionsAgenda 21Actual prices paid by final consumer for energywith and without taxes and subsidiesUS dollars (purchasing power parity [PPP]) per unitof energy (different units)NoneChapter 4: Consumption and production patternsPOLICY RELEVANCE(a) Purpose: This indicator reflects the final price paid by consumers for energyservices. Energy prices are driving forces for incentives or disincentives forconsumption or conservation, or efficiency improvements. Also, prices can affectaffordability.(b) Relevance to Sustainable Development: Energy prices can be regulated tointernalize environmental and social costs, to manage demand and to encouragedevelopment of alternative renewable energy options.For developing countries, there is a need to increase energy availability andaffordability, in particular for the lower-income groups of the population, so as toimprove social and economic development. At the same time, efficient energy use indeveloping and developed countries is a major priority. Appropriate pricingmechanisms may be used to overcome inefficiencies.(c) International Conventions and Agreements: None.(d) International Targets/Recommended Standards: No international targets havebeen established. However, it is widely accepted that external costs of energyproduction and use should be internalized. Furthermore, the Johannesburg Plan ofImplementation agreed at the World Summit on Sustainable Development calls for aphasing-out of environmentally harmful subsidies.(e) Linkages to Other Indicators: Related indicators of the economic dimension areannual energy use per capita, intensity of energy use, energy mix and emissions ofgreenhouse gases. This indicator is also linked to social indicators such as share ofhousehold income spent on fuel and electricity.METHODOLOGICAL DESCRIPTION(a) Underlying Definitions and Concepts: This indicator reflects the actual pricepaid by final consumers for various energy services. Prices should include all regularcharges linked to the supply of energy to the customer. For example, for electricityand gas, the data should include not only the price per kilowatt-hour (kWh) or cubicmetre, but also any standing charges and meter rental charges. Initial charges for79