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In: Economics

Can you think of an energy policy that would promote sustainability, equity, and efficiency? Give info....

Can you think of an energy policy that would promote sustainability, equity, and efficiency? Give info.
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Expert Solution

The scenarios indicate that changesa are needed if energy systems are to promote sustainable development.The key challenges are expanding access to affordable,reliable, and adequate energy supplies while addressing environmental impacts at all levels. Policies can support sustainable development by:Delivering adequate and affordable energy supplies including liquidand gaseous fuels for cooking and electricity for domestic and commercial useto unserved areas.Encouraging energy efficiency. Accelerating the use of new renewables.Widening the diffusion and use of other advanced energy technologies.

With the right policies, prices, and regulation, market can achievebmany of these objective But where markets do not operate or where they fail to protect important public benefits, targeted governmentpolicies, programmes, and regulations are justified when they canachieve policy goal.

At the core of any sustainable energy strategy is a vision for improving the provision and use of energy so that it contribute to sustainable development. For that to happen, policiesmust widen access to reliable and affordablemodern energy supplies and reduce the negative health and environmental impacts related to energy use.Increasedenergy supplies and more efficient allocation of resources for sectoral investment will also be required to support economic development.The key requirement is that steps be taken to make markets work

more effectively, or to help build energy markets where they do not exist.

A competitive market is the most efficient allocator of resources and is capable of providing high levels of consumer service and satisfaction. Thus a key element of a sustainable energy strategy should be to strive for, and to maintain, competitive market conditions. But the market alone cannot be expected to meet theneeds of the most vulnerable groups, to protect the environment, to ensure energy security in the face of politically motivated disruption,

and to support other public goods, such as basic research thatunderpins the innovation and diffusion of new technologies.In general, however, given the proper framework set bygovernment with competitive pricing and effective regulation markets can achieve many of the objectives of sustainable energy.

The policies considered here are targeted towards addressing the needs of people who do not have access to modern energy carriers,making energy supplies more reliable and encouraging the more efficient use of energy, and accelerating the development and wider deployment of new renewable technologies and clean and safe advanced fossil fuel technology. Clean, efficient,and safe technology are either under-exploited or need to be developed. But such technologies have the potential to address the health and environmental problems associated with conventional fossil fuel technologies.The broad policies to encourage sustainable energy systems are straightforward. But taken together and implemented effectively, they would represent a significant departure from current practices.They are largely aimed at harnessing market efficiencies to achieve

sustainable development.They include, under the broad heading of making markets work better:

:- Energy sector restructuring, where this is not already taking place.

Attracting private capital.

:- Phasing out subsidies for conventional energy supply and consumption.

:- Internalising externalities, such as health and environmental impacts.

Promoting energy efficiency.

:- Supporting energy sector innovation and the wider and accelerated

use of sustainable energy technologies.

:- Building institutional and human capacity in sustainable energy.

:- Introducing wider-ranging and more effective regulatory measures,

to improve market operations and their public benefits

The greatest challenge comes when society is asked to move from addressing tangible current needs to taking actions to manage environmental resources for the future and for the sake of future generations.Taking such actions in the face of competing short-term interests will require a major reorientation in the approach to energy and energyservices. What is required is a new global consensus, essentially the evolution of a new energy paradigm aligned with the goal of sustainable development.This, in turn, needs to be reflected in national,local, and individual perspectives and priorities.For such a shift to occur, the sustainability debate will need tomove to centre stage, accompanied by much higher public awareness,information, and commitment. If public support for sustainableenergy development.


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