A “RATIONAL” POLICY FOR THE ENERGY AND ENVIRONMENTAL CRISES1

ABSTRACT: The present energy and environmental crises are due to increasing per capita demands as well as increasing populations. The role that traditional pricing policies have played in promoting these demands is discussed. The reduction or stabilizing of per capita demands is advocated through the use of Conservational Pricing mechanisms which charge higher average prices for high consumption. An example of the effect of Conservational Pricing in the water supply industry is given.