Energy policy
Energy policies are the government's strategies and decisions regarding the production, distribution, and consumption of energy within a specific jurisdiction. Energy is essential for the functioning of modern economies because they require energy for many sectors, such as industry, transport, agriculture, housing. The main components of energy policy include legislation, international treaties, energy subsidies and other public policy techniques.
The energy sector emits more greenhouse gas worldwide than any other sector. Therefore, energy policies are closely related to climate policies. These decisions affect how high the greenhouse gas emissions by that country are.
The main components of energy policy include:
- Legislation and regulation – Governments implement laws to promote renewable energy, set efficiency standards, and regulate fossil fuel extraction.
- International treaties – Agreements like the Paris Climate Accord influence national energy strategies by setting emission reduction targets.
- Subsidies and incentives – Many governments provide financial support for clean energy technologies while phasing out fossil fuel subsidies.
- Public policy techniques – These include carbon pricing, renewable portfolio standards, and energy efficiency mandates.
Purposes
Access to energy is critical for basic social needs, such as lighting, heating, cooking, and healthcare. Given the importance of energy, the price of energy has a direct effect on jobs, economic productivity, business competitiveness, and the cost of goods and services.Frequently the dominant issue of energy policy is the risk of supply-demand mismatch. Current energy policies also address environmental issues, particularly challenging because of the need to reconcile global objectives and international rules with domestic needs and laws.
The "human dimensions" of energy use are of increasing interest to business, utilities, and policymakers. Using the social sciences to gain insights into energy consumer behavior can help policymakers to make better decisions about broad-based climate and energy options. This could facilitate more efficient energy use, renewable-energy commercialization, and carbon-emission reductions.
Approaches
The attributes of energy policy may include legislation, international treaties, incentives to investment, guidelines for energy conservation, taxation and other public policy techniques. Economic and energy modelling can be used by governmental or inter-governmental bodies as an advisory and analysis tool.Energy planning is more detailed than energy policy.
National energy policy
Some governments state an explicit energy policy. Others do not but in any case, each government practices some type of energy policy. A national energy policy comprises a set of measures involving that country's laws, treaties and agency directives.There are a number of elements that are contained in a national energy policy. Some important elements intrinsic to an energy policy include:
- What is the extent of energy self-sufficiency for this nation
- Where future energy sources will derive
- How future energy will be consumed
- What are the goals for future energy intensity, ratio of energy consumed to GDP
- How can the national policy drive province, state and municipal functions
- What specific mechanisms are in place to implement the total policy
- Do you want to develop and promote a plan for how to get the world to net zero emissions?
- What fiscal policies related to energy products and services should be used ?
- What legislation affecting energy use, such as efficiency standards, emission standards, is needed?
Relationship to other government policies
Energy policy is closely related to climate change policy because totalled worldwide the energy sector emits more greenhouse gas than other sectors.
Energy policy decisions are sometimes not taken democratically.