ABSTRACT
A holistic policy recognizes interrelationships. A piecemeal energy policy considers each energy source in isolation. Currently, there is a policy for oil, another one for natural gas, a separate focus on coal, one more for wind, another for solar, and maybe one more for energy efficiency. Government regulation in the late 1970s required electric utilities to buy alternatives such as solar energy at above-market prices. Incentive-based (IB) solutions make use of markets, whereas command-and-control (CAC) replaces them. Buildings account for 40" of primary energy consumption, with industry the second largest user at around one-third, and transportation the third largest use at almost 30". Economists advocate starting with markets, and augmenting them if needed to maximize societal welfare. The goal of a holistic energy policy is to do the best in an imperfect world to choose policies that move us in the direction of achieving societal objectives that balance energy use with other objectives such as emissions reductions.
