Policies govern decisions regarding energy production and consumption. They may address matters such as decarbonization, system reliability, resource diversification, technology export potential, economic costs or electricity access.
Americans continue to express a preference for prioritizing renewable energy over fossil fuel expansion; however, partisan differences exist about how best to promote this shift.
Renewable Energy
Renewable energies provide a significant portion of global energy demand, particularly electricity generation. Renewables utilize sunlight, falling or flowing water, geothermal heat from underground deposits (geothermal), wind power, plant materials (biomass) and waves as sources to generate electricity that is then used by buildings, industries and transportation to power buildings, industries and transport networks.
Renewable energies are domestically available, reducing dependence on foreign fuel imports as well as balance-of-payment issues and fuel price volatility. They offer local economies an opportunity for investment, construction and operation activities to stimulate local economies.
Renewable energies emit low or no greenhouse gases or air pollutants and offer many health advantages. Their deployment reduces national reliance on foreign fossil fuels while providing energy security – helping mitigate climate change while strengthening international peace. Global levelized cost of electricity (LCOE) for solar PV, wind, and hydro power continues to decline; however, to achieve their full potential within an NZE Scenario they must grow much more rapidly than they have done so far.
Fossil Fuels
Fossil fuels (coal, oil and natural gas) play an integral yet complex role in meeting energy policy goals. They supply much of the world’s energy supply; fuelled the Industrial Revolution and modern transportation networks; contributed to climate change, air pollution and environmental degradation – yet continue to provide global energy needs.
Carbon emissions are nonrenewable and depletable resources formed through the fossilized remains of plants and animals that lived millions of years ago, under intense heat and pressure, then burned for fuel, contributing to climate change by decreasing global oxygen levels while polluting water supplies and soil.
Government subsidies for fossil fuel production and consumption undermine energy policy goals by artificially keeping prices artificially low for ineffective, unsustainable choices. Subsidies should end, governments should reject pipelines across vulnerable lands, support efforts to strengthen state and federal emission performance standards, implement taxes on windfall profits as California did, as well as implement taxes on windfall profits as California did last year (IMP-LD achieves significantly faster reductions in oil and gas demand than most AR6 scenarios (see Supplementary Figure 5b and 5c).
Energy Efficiency
Energy efficiency reduces costs, lowers greenhouse gas emissions and conserves scarce, harder-to-extract natural resources. Furthermore, it can help combat air pollution linked to various health conditions.
Energy policymakers can employ incentives to incentivize both individuals and businesses to become more energy-efficient. This may involve offering consumers discounted products that save energy or enabling companies to streamline operations to become more energy-efficient. Incentivization may take the form of tax deductions and rebates.
Promoting energy efficiency can also be done via an assessment system which measures a nation’s energy intensity – this measures the amount of primary energy required per unit of gross domestic product (GDP). A positive rate of change indicates that nations are using less energy than before. New York State is taking this route in order to meet its goals of clean, affordable energy, climate resilience and economic opportunity.
Conservation
Energy conservation refers to efforts undertaken by nations to decrease overall energy consumption through strategies like encouraging the creation and implementation of environmentally-friendly technologies, carbon pricing schemes or subsidizing subsidies – these efforts often align with specific country goals and objectives.
Countries develop various energy policies tailored to national interests and priorities, including decarbonization, system reliability, resource diversification, technology export potential, economic costs and electricity access. They may also join international agreements in working towards common goals.
America has long sought energy independence since 1973 with an ambitious nationwide drive for energy conservation, yet due to low interest among household occupants, an unclear feedback message, and potential fallback effects (where energy use returns back up after periods of reduced efficiency), these policies have failed. More holistic approaches based on social practices theories might overcome such hurdles and increase energy efficiency policies’ efficacy.