The challenges of energy policy are multiplying, particularly as climate change has become a feature of the discourse around the world. There is no single policy tool that addresses all elements of the energy trilemma – securing affordable, reliable, and environmentally sustainable energy. The resulting collage of often overlapping policies may yield unexpected, and potentially undesirable, results without a proper ex-ante analysis of their interactions. Government intervention is ubiquitous in the energy landscape, including taxation, subsidization, and directly regulating market operations among others.
