A Macroeconometric Energy Policy Simulation Model for the Philippines: Structural Analysis

Current planning and policymaking have not been very successful in terms of target-setting and policy prescriptions because of the seemingly implicit treatment of the energy factor in the formulation of models for policy and planning. This paper reports the results of an econometric modeling project aimed at studying energy-economy interactions in the Philippine economy. Specifically, it seeks to quantify the impact of the energy crisis on macroeconomic variables of policy importance and, relatedly, may be used to evaluate the effectiveness of government policy reactions (fiscal, monetary, and balance-of-payments policies) to the energy crisis of the 1970s.