The energy transition: A balancing act

Natalia Fabra and Mar Reguant

Resource and Energy Economics, 2024, vol. 76, issue C

Abstract: As the need for drastic reductions in global greenhouse gas emissions becomes increasingly urgent, governments and policymakers are developing proposals for climate change policies that aim to achieve net-zero emissions. However, the challenge lies in determining the most effective way to operationalize this transformation. While cost efficiency is often emphasized as a desirable property, experience shows that it is neither necessary nor sufficient to achieve a desirable policy portfolio. Instead, we advocate for a broader definition of economic efficiency: policies must also be feasible, fair, effective, and credible. Trade-offs between these criteria are common, and must be balanced to create a successful policy portfolio. The European experience provides interesting case studies with which to illustrate these efficiency dimensions and their implications.

Keywords: Energy transition; Climate policy; Optimal portfolio (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:76:y:2024:i:c:s0928765523000635

DOI: 10.1016/j.reseneeco.2023.101408

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