Energy policies encompass an umbrella of rules and incentives that regulate how people utilize energy resources. Some policies are explicit – like tax credits or direct spending — while others, like low income home energy assistance programs, are indirect.
Industrialized countries have made considerable headway in reducing CO2 emissions through rationalized energy consumption, yet more aggressive steps need to be taken if we want to prevent catastrophic climate change.
Fossil Fuels
Fossil fuels include coal, petroleum and its products, natural gas, bitumens and tar sands – as well as non-renewable fossil fuels such as bitumen. Fossils form naturally through geologic processes from ancient plant and animal remains that have lived millions of years ago, which were left behind. When burned they release carbon dioxide into the air which contributes to global warming while harvesting them can be hazardous for those involved – like coal miners who risk black lung disease while oil rig workers could encounter toxic chemicals during harvesting activities.
Energy policies designed to decrease fossil fuel use must account for their indirect costs, which are passed onto society as a whole through current pricing systems and known as externalities. Such costs include environmental degradation, health impacts and economic dislocation. Unfortunately, fossil fuel industry lobbyists often oppose such policies, undermining core democratic rights through expensive lawsuits against public participation (SLAPP), anti-protest laws and voter suppression efforts.
Renewable Energy
Renewable energy development is a global priority, helping achieve climate targets set forth in the Paris Agreement while simultaneously cutting emissions from fossil-fueled electricity production. Renewables also offer significant job creation opportunities while contributing to greater economic competitiveness by decreasing air pollution levels and improving health outcomes.
Numerous cities, states and nations have established renewable portfolio standards – policies which require utilities to generate at least some percentage of their electricity from renewable sources – in order to diversify their energy resources, promote domestic energy production and boost economic development in resource poor areas of their nation.
Integrating renewables into an existing electricity grid requires more than plugging a cord into an outlet; it involves the development of new technologies, coordination of generation from multiple sources and investment in grid storage options.
Energy Efficiency
Energy efficiency measures aim to minimize the energy needed to complete tasks and can lower bills by cutting consumption from appliances and lighting that use less electricity to building with better insulation or efficient heating and cooling systems. Energy efficiency also can boost productivity by helping businesses produce more products or services with the same amount of energy used.
Energy efficiency gains have been most noticeable in the buildings sector, where energy intensity (the amount of energy used per square foot or passenger kilometre) decreased by 35% between 2000 and 2022. Improvements are still necessary in other sectors like transportation and industrial production.
State energy policies offer several incentives to encourage efficiency, such as appliance standards and building codes, market priming to lower upfront costs for new technologies, rate reforms like revenue decoupling or performance-based pricing with time-of-use rates, integrated resource plans that prioritize energy efficiency as well as financial incentives such as tax credits, grants or support for research.
Energy Conservation
Energy conservation refers to the reduction of consumption of energy resources to protect them for future use and reduce environmental pollution caused by non-renewable fossil fuels. Energy conservation may be achieved either through decreasing demand or by improving efficiency among existing energy resources.
Governments and private organizations across the world have implemented energy conservation policies and programs, designed to decrease energy usage through education and incentives for individuals or businesses to adopt more energy-saving habits and practices.
Some countries also employ energy conservation policies in order to meet their climate change goals, specifically carbon dioxide emission reductions and energy efficient technologies such as solar and wind power. These efforts help meet Paris Agreement goals of decarbonizing energy systems while also contributing towards lower economic costs associated with energy and electricity supplies.