Energy policy serves as our guide towards a more sustainable future, shaping choices about sources, efficiency, infrastructure, pricing and environmental regulations to reduce impact and promote equitable access.
Focus federal energy R&D funding on conceptual and laboratory research. Prevent loan guarantees, production tax credits, renewable portfolio standards or government/industry partnerships which seek to force premature commercialization.
Costs
Energy sources and policies have an immense effect on the economy and lives of millions of Americans, from cost of goods and services to price of living to employment levels and wages. Furthermore, their choices can have especially adverse repercussions for economically disadvantaged communities, senior citizens and energy industry employees.
State renewable mandates and federal policies aimed at decreasing fossil fuel usage have raised costs for electricity providers across the nation, which in turn have been passed onto households.
A national energy strategy must prioritize diversifying domestic energy sources while encouraging energy efficiency and conservation, without excessive or discriminatory pricing, which harms businesses as well as consumers alike. A level playing field for all types of energy should allow cost comparisons among types. Furthermore, policies that encourage wastefulness such as pollution must also be avoided while policies encouraging waste are particularly bad examples – this Backgrounder includes a graphic showing why renewables often tend to cost more.
Technology
Energy policies can be an invaluable asset in shaping new technology development. They can do this through financial incentives like tax credits, subsidies and research funding as well as pricing mechanisms such as carbon taxes or cap-and-trade systems which incentivize low carbon technologies with economic incentives to reduce carbon emissions.
Energy policies provide the framework for implementing such technologies, but for maximum effectiveness these must take into account gender, class, and migrant perspectives as well. Research has demonstrated that these groups are underrepresented in existing initiatives and narratives about low-carbon transition. Furthermore, effective opportunities must be given them to participate in restructuring energy technology and setting technical priorities, and providing access at reasonable prices; all essential ingredients of an equitable energy transition.
Policy
Energy policy refers to the creation and implementation of rules that dictate how a country utilizes energy resources, with implications that span various other policy fields such as climate change mitigation, economic development and access to electricity. It has become an increasingly complex area.
Policies are determined by the interests of stakeholders competing for political influence. Political science studies how political power and decision-making processes influence energy policy outcomes; for instance, incumbent fossil fuel interests spend 10 times more each year lobbying than champions for green energy do.
Government support and incentives for clean technologies continue to reach record heights, with an eye towards security of supply and affordability. Unfortunately, however, many current programs like production tax credits and loan guarantees are too costly and ineffective at speeding up commercialization; their funds would be better spent investing in concept research – something private industry does not possess the expertise for.
Markets
Energy markets are at the core of any robust, green energy system. Their success depends on them for successfully creating renewable energy economies and cutting carbon emissions; reflecting intricate interactions among market, policy and technology – as well as providing powerful feedback loops for action to take place.
As economies expand and demand more affordable and cleaner energy sources, the current global energy crisis has hastened the transition away from fossil fuels – which may be welcome but may create additional difficulties for some vulnerable households.
Though some governments are taking measures to mitigate rising energy prices by restricting consumer prices or compensating customers, their policies remain limited in scope and effectiveness. Global markets will ultimately determine which oil majors drill new wells or mine new coal/gas deposits.