Energy policy Energy policy is the manner in which a given entity (often governmental) has decided to address issues

of energy development including energy production, distribution and consumption. The attributes of energy policy may include legislation, international treaties, incentives to investment, and guidelines for energy conservation, taxation and other public policy techniques.

Measures used to produce an energy policy

A national energy policy comprises a set of measures involving that country's laws, treaties and agency directives. The energy policy of a sovereign nation may include one or more of the following measures statement of national policy regarding energy planning, energy generation, transmission and usage !egislation on commercial energy activities (trading, transport, storage, etc.) legislation affecting energy use, such as efficiency standards, emission standards instructions for state"owned energy sector assets and organi#ations active participation in, co"ordination of and incentives for mineral fuels exploration (see geological survey) and other energy"related research and development fiscal policies related to energy products and services (taxes, exemptions, subsidies ... energy security and international policy measures such as international energy sector treaties and alliances, general international trade agreements, $pecial relations with energy"rich countries, including military presence and%or domination. &requently the dominant issue of energy policy is the ris' of supply"demand mismatch (see energy crisis). (urrent energy policies also address environmental issues (see climate change). $ome governments state explicit energy policy, but, declared or not, each government practices some type of energy policy. )conomic and energy modelling can be used by governmental or inter"governmental bodies as an advisory and analysis tool.

Factors within an energy policy

There are a number of elements that are naturally contained in a national energy policy, regardless of which of the above measures was used to arrive at the resultant policy. The chief elements intrinsic to an energy policy are *hat is the extent of energy self"sufficiency for this nation *here future energy sources will derive +ow future energy will be consumed (e.g. among sectors) *hat fraction of the population will be acceptable to endure energy poverty *hat are the goals for future energy intensity, ratio of energy consumed to ,-.

*hat is the reliability standard for distribution reliability *hat environmental externalities are acceptable and are forecast *hat form of /portable energy/ is forecast (e.g. sources of fuel for motor vehicles) +ow will energy efficient hardware (e.g. hybrid vehicles, household appliances) be encouraged +ow can the national policy drive province, state and municipal functions *hat specific mechanisms (e.g. taxes, incentives, manufacturing standards) are in place to implement the total policy