What Policy Choices Do We Have ? – The Normative Side of the Story

Introduction: About 70% of electricity consumed in the United States is generated from fossil based resources. Even though the usage of renewable options such as wind, solar and geothermal, etc. have generally followed an increasing trend in the past decade, it is not nearly enough to address the everlooming Climate Change problem. With Mr. Kevin Rudd, the newly elected Prime Minister of Australia pledging to join the Kyoto treaty, it is inevitable that the United States will soon be alone in waging a losing battle against the reduction of carbon emissions. Undoubtedly, a turn towards a more sustainable direction is required. As alluring as it is to carry on with a ‘Doomsayer’s Theory’ for the U.S., I actually wanted to present a more Normative side of the story. This article looks at possible policy frameworks that would increase the usage of renewable technologies and the investment in the clean technology sector. What follows is a brief description of each economic policy option considered, its expected influence on the investment in renewable electricity market, and actual real world examples of such a policy framework being instituted. The purpose of this article is to highlight the range of options available to the U.S. in their impending crusade to increase investment in the renewable electricity markets.