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The energy policy, which supports industrial policy holds large problem with the democracy movement in Taiwan. Especially, energy utilization patterns and energy-associated industries are connected with the environmental problem directly or indirectly. Therefore, the incongruent or improper energy policy becomes a target of opposition movement frequently. This paper analyzes the structure of energy supply, demand and consumption in Taiwan, and the problem of energy policy in Taiwan postwar. Emphasis will be upon surveying: (1) the economic growth of Taiwan is a result of low-cost energy policy or low energy pricing policy promotes the economic growth and plays a extremely important role, (2) the heavy chemical industry policy of Taiwan causes the pollution problem as well as there is low energy pricing policy in the background, (3) the low energy pricing policy has caused inefficiency and waste of energy utilization, (4) there are many problems in respect of the energy policy of Taiwan concerning efficiency, equity and market liberalization.