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Show 6 required by private companies. This means that private RID for the longer term would be given less emphasis than would be consistent with the priorities of society, such as long term sustainable economic growth, long-term security of supply and provision for the future andlor future generations. Clearly the public sector has a role to play in the longer term RID spectrum. This is especially true in the European context where a considerable number of public energy companies are being privatised. G. Economies of Scale and other Market Structure Issues. Some RID activities are too speculative, too large or too costly to be carried out effectively by anyone individual company. Furthermore, the competitive nature of the marketplace, normally a source of innovation, could prove to be an inhibiting factor for cooperative large scale or highly speculative RID. The public sector therefore plays a role in instigating such research or in providing a catalyst for cooperating guidance among different agents in order to carry it out. The possible benefits could, subsequently, be made available to all. There is also a role for public intervention whenever the introduction of mature technologies in the market entails a technical andlor economic risk. 3. CHOICES TO BE MADE. Given the motivation for action presented in the previous sections and the broad policy obj ectives derived, namely the reduction of CO2 emissions, the pursuit of energy security and the consolidation and expansion of the European technological base, the tracing of the elements of a possible EU energy RID strategy can be attempted. In choosing the main axes of such a strategy one must keep in mind that RID activity is a long term process requiring continuity, stability and a clear priority of objectives, in order to become significant. A. Strengthening Rational Use of Energy. Reduction in energy intensity in the provision of energy services is widely acknowledged as one of the most promising areas in terms of meeting energy policy strategic aims. Many of the options in this area are already "cost effective" i.e. can be justified in terms of private cost reduction to the users of the energy services. The household sector demonstrates some of the most glaring examples of non-implementation of best available technology. B. Action on Conve~ion and Exploitation of Fossil Fuels. Even though fossil fuel consumption and CO2 emission reduction are seemingly incompatible, the world energy economy is currently overwhelmingly fossil fuel based and is likely to remain so for a long time. RID action on fossil fuels could enhance energy security through diversification and cost reduction and could even lead to advantages in terms of managing the global warming problem. Coal is estimated to remain an abundant resource and is currently the dominant fuel for power generation. Even if in the case of a possible emergency regarding CO2 atmospheric concentrations, the European Union were prepared to drastically reduce coal fired generation, it is highly unlikely that major coal producers and consumers in Asia and Eastern Europe |