ABSTRACT
This chapter aims to assess the burden by examining its most obvious impact, the impact of rising energy prices on household expenditures. Energy industry officials have come to recognize the critical social problem that rising energy prices pose. Among the most basic commitments on the demand side was a social equity commitment. Juxtaposing social, technical and economic considerations is frequently suggested, but rarely carried out. The important point to note is that while energy prices continue to rise, the rate of increase of energy expenditures as a percentage of income declines, because rational economic actors try to reduce the impact of rising prices. As energy prices rise, individuals, local governments, etc., will respond by trying to reduce their consumption while maintaining their "living standard." Changing patterns of energy consumption and the dynamic effects of rising energy prices on the economy and the national income distribution are undoubtedly among the most complex and trying issues that policymakers and policy analysts faced.
