Energy policy
Introduction
Energy policy is the way in which a given entity (generally a national or subnational government) decides to conduct the production, distribution and consumption of energy. Energy policy can be carried out through legislation, international treaties, investment incentives, guidelines for energy savings or energy efficiency, taxes or the development and compliance of medium and long-term energy plans. Energy is a fundamental component of modern economies. A functioning economy requires not only capital "Capital (economy)") and labor "Labor (economy)"), but also energy for manufacturing, transportation, communication, agriculture, health, housing or education activities.
Background
Regarding the term energy policy, the importance of implementing a sustainable policy on a global scale to alleviate the serious problem of global warming should be highlighted.[1].
Although research is ongoing, the "human dimensions" of energy consumption are of growing interest to energy companies, other market players, and policymakers. Using social science to understand energy consumer behavior allows these designers to make better decisions about different energy and climate options (basically what energy matrix to pursue and how to manage it for a sustainable and secure supply at a reasonable price). This utilization can facilitate more efficient use of energy, the commercialization of renewable energy and the reduction of greenhouse gas emissions, which cause global warming.[2] Access to energy is also critical for basic social needs, such as lighting, heating, cooking and healthcare. As a result, the price of energy has a direct effect on employment, productivity, competitiveness and the cost of products and services.
National energy policy
Measures used to develop an energy policy
A national energy policy comprises a set of measures related to laws, treaties and guidelines of the various organizations concerned. The energy policy of a sovereign nation may include one or more of the following measures:.
From the Oil Crisis of 1973 until the oil bubble of 2008, energy policy was dominated by the risk of mismatch between supply and demand (see energy crisis "Energy crisis (economy)")). Currently, and due to the serious effects of global warming, energy policies are oriented towards the energy transition (abandonment of fossil fuels),[3] facing serious difficulties due to the need to reconcile global objectives and international agreements with national needs and situations.[4] Some governments explicitly state their energy policy, but, whether they declare it or not, all governments practice some type of energy policy. Governmental or intergovernmental organizations (for example the International Energy Agency) can use economic and energy modeling as an analysis and decision tool (see economic model, POLES).