Green energy, Efficiency and climate change: An economic perspective

Abstract

The three core objectives of any sensible energy policy nowadays are (1) security of supply, (2) competitiveness, and (3) sustainability. Renewable energy and energy efficiency investments are crucial if we are to make energy supplies more sustainable, competitive and secure. These goals support each other. More sustainable energy sources, such as renewables, help the energy sector to be more competitive, as well as diversifying and securing its energy supply. Yet implementing policies to promote green energy and efficiency is no easy task. This chapter seeks to discuss the difficulties facing the regulation needed in the energy sector and to analyze the key concepts and the main markets failures that characterize the energy markets. It also reviews the main policies undertaken at EU level in order to deal with the relations between the energy sector and the problem of climate change.