Energy policy dictates how we consume and produce energy. From local governments to international trade organizations, various institutions use policies to influence energy use behavior.
Fossil fuel production, particularly drilling and coal mining, imposes environmental costs. Governments should address them through increased protections for iconic landscapes; reinvested energy revenues in conservation; as well as clear mitigation and reclamation requirements.
Energy Security
Energy security refers to a nation’s ability to supply its people with enough energy resources, including oil and electricity, in an economically sustainable manner. Energy security policies seek to address both traditional and emerging threats related to geopolitics, technological transformation and climate change.
Energy access is a public good that cannot be provided by markets alone; governments therefore play an essential role in assuring energy security for their citizens by diversifying energy sources, setting aside reserves for emergency use, and being prepared for potential supply disruptions.
Renewable energy sources should become more available and fossil fuel use reduced to ensure energy security and meet energy needs while simultaneously reduce emissions. Unfortunately, not all households benefit equally from such initiatives; many low-income families experience energy insecurity due to higher costs or ineffective use of home heating units resulting in negative health outcomes and economic hardship.
Environmental Impact
Energy policy includes consideration of the environmental effects – positive or negative – that facilities or activities have on their surroundings, such as air pollution (the release of volatile organic compounds and other gases such as carbon dioxide and nitrous oxide into the atmosphere), water quality/availability issues, plant/animal habitat issues and climate change impacts.
Energy policies should also prioritize the protection and conservation of public lands, such as wilderness areas, to ensure that their natural beauty isn’t sacrificed in pursuit of energy development. This may involve new and expanded protections for iconic landscapes; reinvested energy revenue in land conservation; clear mitigation requirements and reclamation processes; as well as safeguards to avoid environmental disasters such as oil spills, seismic blasting or mountaintop removal mining operations.
Environmental impacts and mitigation methods vary between countries, but typically start with “scoping,” where stakeholders such as public hearings or workshops are given an opportunity to provide input about alternatives, impacts and possible mitigation measures for a project’s potential environmental effects.
Economic Impact
As governments around the world transition away from fossil fuels and decarbonize their energy systems, decarbonization offers new jobs opportunities as well as providing access to cleaner sources of power with lower climate impacts and energy-saving benefits for consumers.
These changes in costs and technologies could have significant ramifications on economically vulnerable communities, necessitating policies to prioritize training and support for displaced coal, nuclear, oil and gas workers in order to facilitate their smooth transition to more eco-friendly jobs and technologies.
Energy teams within organizations typically create an initial draft of their energy policy for top management approval, to establish ownership and demonstrate it as an organizational priority. Some companies use mnemonics for ease of understanding and compliance among employees.
Health Impact
Energy insecurity has long been linked to poor health and climate change. Energy insecurity involves both physical and economic dimensions – insufficient infrastructure, affordability challenges and frequent disruptions of service – compounded with limited financial resources available for investing in energy efficiency projects and limited participation opportunities in clean energy initiatives.
Health impact assessments (HIAs) provide a practical means for judging the potential effects of policies, programs or projects on population health – particularly that of vulnerable or disadvantaged groups. HIAs promote democracy, health equity, holistic approaches to individual and community wellbeing as well as sustainability in decision making processes. Their purpose is to identify both positive and negative health impacts of proposals as well as provide recommendations for optimising positive impacts while minimizing adverse ones; their use extends across economic sectors using quantitative, qualitative and participatory techniques.