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UK energy policy – Stuck in ideological limbo?

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  • Keay, Malcolm

Abstract

Energy policy in the UK has undergone a paradigm change over recent decades – from the free market stance of the 1990s to the more interventionist measures of the 21st century. However, the two approaches have not been reconciled – even as the Government intervenes, it reaffirms its goal of creating more competitive markets. The contradictions are most apparent with electricity, which has been the main focus of intervention to date, in line with decarbonisation strategy. Investment is dependent on Government support, which changes in response to circumstances, creating uncertainty and undermining the basis of market operation – so leading to the need for more intervention. The future for other sources – natural gas, nuclear power and carbon capture and storage in particular – remains unclear. The Government risks getting the worst of both worlds – without the coordination and direction which could come from a centralised approach or the efficiencies and innovation which might emerge from a more consistent market based policy. Unless a fuller policy statement, expected later this year, can clarify matters, UK energy policy will not be fit for purpose and will fail to meet its key goals, of economic effectiveness, environmental protection and energy security.

Suggested Citation

  • Keay, Malcolm, 2016. "UK energy policy – Stuck in ideological limbo?," Energy Policy, Elsevier, vol. 94(C), pages 247-252.
    • Handle: RePEc:eee:enepol:v:94:y:2016:i:c:p:247-252
    DOI: 10.1016/j.enpol.2016.04.022
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    References listed on IDEAS

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    1. Buchan, David & Keay, Malcolm, 2016. "Europe's Long Energy Journey: Towards an Energy Union?," OUP Catalogue, Oxford University Press, number 9780198753308.
    2. Eyre, Nick & Baruah, Pranab, 2015. "Uncertainties in future energy demand in UK residential heating," Energy Policy, Elsevier, vol. 87(C), pages 641-653.
    3. Helm, Dieter, 2003. "Energy, the State, and the Market: British Energy Policy since 1979," OUP Catalogue, Oxford University Press, number 9780199262038.
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    Cited by:

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    2. Lijun Zeng & Laijun Zhao & Qin Wang & Bingcheng Wang & Yuan Ma & Wei Cui & Yujing Xie, 2018. "Modeling Interprovincial Cooperative Energy Saving in China: An Electricity Utilization Perspective," Energies, MDPI, vol. 11(1), pages 1-25, January.
    3. Cox, Emily, 2018. "Assessing long-term energy security: The case of electricity in the United Kingdom," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2287-2299.
    4. Augustine O. Ifelebuegu & Kenneth E. Aidelojie & Elijah Acquah-Andoh, 2017. "Brexit and Article 50 of the Treaty of the European Union: Implications for UK Energy Policy and Security," Energies, MDPI, vol. 10(12), pages 1-15, December.
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    6. Egli, Florian, 2020. "Renewable energy investment risk: An investigation of changes over time and the underlying drivers," Energy Policy, Elsevier, vol. 140(C).
    7. Andrew Chapman & Benjamin McLellan & Tetsuo Tezuka, 2016. "Strengthening the Energy Policy Making Process and Sustainability Outcomes in the OECD through Policy Design," Administrative Sciences, MDPI, vol. 6(3), pages 1-16, July.

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