Abstract
Issues related to energy problems play an important role in the current public and political discussion. This paper analyses recent energy policy utilizing the Austrian experience and an econometric demand/supply model. The policy failures and the wrong perceptions of the functioning of the national and international energy markets are not limited to Austria but are typical for many other industrialized countries. In addition to the criticism of public policies, the impact from the 1986 collapse in oil prices on the changes in energy demand growth and pattern is investigated.
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