Greenhouse gas mitigation: Policy options

Abstract

Reducing greenhouse gas emissions will require changes to the pattern of energy supply and use. Energy use is largely shaped by social factors, as is clear from comparative studies which show that there is no simple link between energy use and either wealth or climate. The same conclusion emerges from studies of the changing pattern of energy use over time in a given society. Consumer demand is not for energy as an abstract quantity but for energy services such as motive power, transport, heating and lighting. The level of demand for each of these services is largely determined by social factors. There is little evidence for the common belief that the pattern of energy use results from consumers making rational choices in a free market to maximise marginal utility. In many cases, the consumer sees no price signal at the point of use. Where there are partial price signals, as in the case of transport fuels, energy demand is highly inelastic. These considerations are crucial if there is an aim of changing the pattern of energy use. Demand for energy can be influenced by price signals, by legislation or by changing social attitudes. There is a common belief that changing demand could result in unacceptable disruption, based on the scale of price changes needed to influence demand. This body of evidence really shows that increasing prices is not a promising way to influence demand patterns. Changing social attitudes are the key to behavioural change and central to the acceptability of regulatory change. Thus significant alteration in the pattern of energy use is unlikely to occur without an improved understanding of the social dimensions of energy use.