MIT centers, laboratories, departments and programs provide a multi-faceted approach to solving the world's energy challenge.
Policy, regulation,
siting and security
Adoption of policies and regulations that internalize the true costs of energy production and use and encourage the development and deployment of clean and energy-efficient technologies is critical. While energy security is difficult to value and reflect in energy costs, it is clear that continued reliance on petroleum carries significant costs that include defense of lengthy and complex supply chain infrastructures. Also, ownership of energy infrastructures in the United States and other industrialized nations is largely in the hands of private industry, which lacks incentives for reducing energy use or cutting greenhouse gas emissions.
This lack of incentives and clear government policy direction further exacerbates energy challenges by discouraging investment in existing infrastructures and alternative sources of supply. Infrastructures, whether aging industrialized power systems or rapidly growing ones in China and India, require significant ongoing investments as the demand for the quantity and quality of power and fuels increases. The combined challenges of environmental regulation and market competition in energy industries require an integrated approach to policy design if our near-, medium- and long-term goals are to be met in a timely and cost-effective manner. Policy design that is supported by sound analysis of the technology options and the range of impacts and costs associated with their utilization will also assist in making and expediting siting decisions. Novel international policy and institutional approaches will be needed as the world tackles both climate change and energy security challenges.
