Policies for a solar economy

Abstract

Punctuated by oil shocks and ultimately limited by environmental concerns, the fossil-fuel age may be nearing its close. While the renewable technologies are now available to make the transition away from today's coal- and oil-based energy system, existing energy policies do little to accelerate the commercial development of renewable energy. This paper examines some of the policy reforms needed to make the transition to a renewable energy economy, beginning with a change in energy pricing that internalizes the environmental and security costs of fossil fuels. Utility reform, a major shift in current energy research and development spending, and the creation of an international renewable energy agency are among the key elements of a sound energy policy that will allow the 60–80% reduction in carbon emissions needed to stabilize atmospheric CO 2 concentrations.