Policy Brief

Not all Australian communities are equally protected by consumer electricity retail regulations, with remote and Indigenous communities more likely to be underserved on multiple fronts. Communities in regions potentially critical to energy transition are often underserved by regulations that would otherwise ensure their own energy needs, hindering progress toward a just transition.

Low-income solar adopters are more likely to refer others to a fully subsidized solar programme when referral rewards are combined with an appeal to reciprocity and a simplified referral process, leading to five times as many solar contracts as when referral rewards are used alone. The findings highlight behavioural science strategies that administrators of low-income energy assistance programmes can use to cost-effectively accelerate programme uptake.

Compared to excise taxes and carbon taxes, setback restrictions on new oil wells have larger health benefits and worker compensation losses, but are more equitable by bringing greater benefits and lower losses to disadvantaged communities in California. For California to meet green gas emissions (GHG) targets, larger setbacks than currently proposed or additional supply-side policies are needed.

European fuel tax cuts will lead to significant income transfers to Russia, thus undermining the Union’s sanction efforts against the country. EU politicians should instead consider alternative policies, such as direct income transfers to households, if they want to shield citizens from increased fuel prices without benefiting Russia.

Considering the probability of occurrence of an extreme cold event similar to that in February 2021, winterization of the Texan power system pays off for risk-neutral utilities in the medium term. Risk aversion can cause under-investment, and policymakers should therefore take into account extreme event risks in decision-making and implement measures that increase winterization efforts.

For remote Indigenous communities prepaying for electricity in Australia’s Northern Territory, temperature extremes increase reliance on the services that energy provides and the risk of disconnection of those services. Policy should focus on reducing the frequency, duration and negative impacts of disconnection, within the context of a warming climate.

Without additional support policies, clean cooking could become unaffordable for about 470 million people by 2030 if a post-pandemic recovery is slow, and about 200 million people by 2030 under ambitious climate mitigation action. Acceleration of clean cooking transitions by tapping into pandemic recovery and climate funds to target the poorest people and regions globally is urgently needed.

Innovative energy business models, such as peer-to-peer trading or energy as a service, are attractive to different groups of customers. Disengaged consumers with low trust in the energy market could face further disadvantages, while already active consumers could reap even greater benefits, which risks widening existing socio-economic inequalities.

Wind energy repowering decisions are multifaceted and depend on the physical, political and social landscape, as factors such as noise regulation, aesthetics and political bargaining can significantly influence project development. Policy should recognise that a technology perspective alone cannot inform implementation pathways and should be supplemented with an understanding of the political and social dimensions.

Households reduced their electricity use the most when they learnt both that they were using more energy than their neighbours and that energy conservation was socially approved. This suggests that efforts to use social information to nudge conservation should combine different types of social feedback to maximize impact.

Startups funded by the US Advanced Research Projects Agency – Energy filed patents at twice the rate of similar cleantech firms. The high-risk high-reward funding model has succeeded in advancing energy technology, but more is needed to help these innovative firms cross the valley of death and bring new cleantech products to market.

While the Pradhan Mantri Ujjwala Yojana has been instrumental in increasing India’s liquefied petroleum gas adoption, sustained use depends on factors such as regularity of income and ease of access to free-of-cost biomass. To ensure sustained use after adoption, interventions in clean cooking energy must tie in with broader rural development.

Retiring, transitioning or installing more stringent emissions controls in coal-fired power plants has the potential to decrease asthma attacks and asthma-related emergency department visits and hospitalizations in nearby communities. These health co-benefits should be considered in policy and decision making about coal-fired power plant retirement or retrofit.

Mandatory building energy audits in New York City lead to a modest reduction of energy use of 2.5% and 4.9% for multifamily and office buildings, respectively. This suggests that other approaches besides mandatory audit policies, such as building energy grading and carbon intensity targets, may be needed to achieve sustainability goals.

Non-market effects, such as strategic decisions by the Organization of the Petroleum Exporting Countries, energy legislation and speculative bubbles, move crude oil prices away from the level implied by supply and demand for extended periods. These effects should be more proactively monitored and regulated to suit national and international objectives.

Community energy groups can raise citizen finance for renewable energy projects at lower interest rates than from commercial lenders, but they often depend on price guarantee schemes. Policies providing price stability and business model innovations are needed to realize the sector’s potential contribution to the zero-carbon energy transition.

Although India’s Ujjwala programme has encouraged adoption of modern cooking gas, households have not shifted away from using highly polluting solid fuels. Additional incentives to encourage regular use of cooking gas are necessary to enable a more rapid and complete transition to clean cooking fuel among poor rural households.

Biomass such as agricultural and forestry residues, animal manure and municipal solid wastes can be a replenishable and widely available source of energy. Harnessing this resource can have significant energy and environmental benefits.

The elderly and those with disabilities face greater increases in electricity bills and worse health outcomes under some time-of-use electricity rates. This suggests that vulnerable groups should be considered separately in time-of-use rate design, and future rate designs should be tested to ensure that they do not increase hardship.

While a government commission recently proposed to phase out coal in Germany by 2038, voters would prefer a phase-out by 2025. Policymakers may underestimate public willingness to support an expedited transition away from high-carbon sources of energy.