This paper develops an energy balance model for Thailand, makes projection of future energy needs, and tests various alternative strategies to deal with energy dependence. We show that rapid economic development may have large negative impacts on the balance of payments of energy deficient economies like Thailand. Fortunately, East Asian growth is based on expert promotion so that foreign earnings tend to offset the cost of imported fuel. (C) 2000 Society for Policy Modeling. Published by Elsevier Science Inc.