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Show 5 C. Securing Energy Supply. Security of supply is also a global issue in which national governments cannot expect to have a major impact but where the European Union, currently the largest economic block in the world, could make a difference. This has been a major energy policy concern since the early seventies but has appeared less urgent in the present situation characterised by excess supply and low prices. However, it may resurface as an important issue in the not too distant future. Part of the excess supply is due to low demand caused by global economic stagnation. Actions to secure energy supply have to be undertaken at both national and EU levels. Fortunately these are synergetic with those aiming to reduce CO2 emissions by reducing energy demand and diversification of supply. D. Consolidation and Expansion of the European Technological Base. The European Union forms the largest economic block of the industrialised world and is in constant dynamic competition with other industrialised regions such as North America, Japan and the newly industrialised countries of the Pacific rim. Ongoing technological innovation is a prerequisite not only for the enhancement of industrial competitiveness but for its very maintenance. The energy sector as a whole is a technologically intensive sector in which Europe has achieved a fair competitive position, being technologically self-sufficient in many areas and being able to participate actively in a number of specific export technology markets. Whoever takes the leadership acquires the ''first mover advantage", and by developing energy efficient technologies, Europe will be in a better position to face a structural adjustment when at some point energy prices will be affected by the inclusion of external costs, and become higher. If other parts of the world would adopt increasingly innovative energy efficient technologies, the EU could be in a position to supply energy efficient equipment, profiting from lower costs associated with "cumulative production experience". E. Assuming Responsibility for the Problems of Developing Regions. Developing countries are likely to be facing increasing energy needs if their economic development is not hindered. Their share in energy consumption and CO2 emissions is likely to increase sharply in the medium to long term and they cannot be expected to react in the same way as industrialised countries on the issues of global environment or global energy security. It could be a task ofEU RID to find solutions suitable for these countries to continue their development without endangering global objectives. F. Divergence of Private and Collective TIme Preference. Individuals, due to personal circumstances often behave as if they have very short time preferences. To a lesser extent the time preference behaviour of companies (especially companies operating in a risky and rapidly changing environment) tends to be shorter than the public time preference. Since RID decisions are a form of investment, rapid expected payback would often be |