Abstract
In his recent Energy Journal article, G. H. Tzeng emphasizes on the transportation aspects of increased coal use in Taiwan. He does not, however, offer much detail on the economic basis for the switch in National Energy Policy from imported oil to coal. While such a switch confirms that the exercise of rational fuel mix choices has found its due place in Taiwan, it seems appropriate to examine the efficiency of such a switch and its implications, especially for import balances. The new Taiwan energy policy Tzeng describes would increase coal consumption from 7.8 million tons (MT) in 1982 to 43.4 MT over the period ending in 2001. Ninety percent of this requirement would be imported. Of this, more than half would go to the electric power industry (23.8 MT by 2001). The total growth in coal consumption projected by Tzeng for this period amounts to 456 percent in 19 years.
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