Energy prices in developing countries reflect a complex mixture of economic, social, and political interdependencies. The task then is how to induce the adoption of energy-efficient technologies in a situation of low energy prices. Market competition and energy efficiency regulations play a critical role. Experience in Korean manufacturing industries indicates that the more the industries are subject to competition, especially export competition, the higher the energy efficiency in those industries. Energy efficiency standards are also effective and complement market competition.
Industries are, however, generally reluctant to see the tightening of efficiency standards.