Energy Policy

Policy Objectives

If a government perceives a market failure, it will create a policy to try and move the market to a socially optimal price and quantity.

Market-Based Instruments

These instruments often changes prices or costs so that the market will settle on a different price and quantity.

Non-Market-Based Instruments

These instruments often provide information to provide non-monetary incentives to consumers that make them more or less likely to purchase products.

Policy Categories

• Targets
• Regulatory Approaches
• Market Incentives / Subsidies
• Market Disincentives / Taxes / Penalties
• Standards
• Social Transitions
• Knowledge generation and dissemination

Fossil Fuels

• Intangible Drilling Costs Deduction. We provide tax deductions for oil exploration costs.
• Social cost of carbon. These are costs we estimate are borne by the public but are not paid for by fossil fuel companies or consumers.
• Carbon Tax
• Cap and Trade

Solar

• Federal tax credit for solar panel installation
• Renewable electricity production credit

Regulations

• California Title 24 Building Codes

Standards

• Energy Star Appliances

California Electricity Consumption