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Can Energy Policy Be Social
This document discusses the intersection of energy policy and social policy. Energy policy deals with issues of energy production, distribution, and consumption, while social policy aims to improve human welfare through access to essential services. The document outlines how subsidies intended to help consumers can negatively impact economic efficiency by distorting price signals and reducing incentives for energy conservation and development of renewable alternatives. While some support for vulnerable groups may be warranted, blanket subsidies generally decrease overall welfare by consuming energy that has a lower marginal benefit than its cost. The document argues for pricing energy to reflect its true costs while governments may contribute through targeted subsidies to support universal access for households.
