The Market for Energy

  • The Free Enterprise Group
  • Kwasi Kwarteng
  • Ryan Bourne
  • Jonathan Dupont


Our current energy policy rests on an expensive bet that oil prices will rise, while the cost of renewables comes down. Unfortunately, crucial uncertainties remain over the path of oil prices, the political realities in emerging nations, the climate and the future cost of renewables. Given this uncertainty, markets remain the best way to increase energy supply and manage climate change. Rather than try to plan future technologies, the government would do better to restrict itself to subsidies and prizes for advances in basic research.


Wind Turbine Solar Power Nuclear Power Station Energy Market International Climate Change Negotiation 
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  1. 6.
    Dieter Helm, The Carbon Crunch: How We’re Getting Climate Change Wrong — and How to Fix It (New Haven, CT: Yale University Press, 2012), p. 94.CrossRefGoogle Scholar
  2. 18.
    Daniel Yergin, The Prize: The Epic Quest for Oil, Money & Power (New York: Free Press, 2008), p. 651.Google Scholar
  3. 22.
    Author calculation derived from David J. C. MacKay, Sustainable Energy — Without the Hot Air (Cambridge: UIT, 2008) and a UK land area of 243,610 km2 and producing 120 GW.Google Scholar
  4. 29.
    Dieter Helm, Energy, the State, and the Market: British Energy Policy since 1979 (Oxford: Oxford University Press, 2003).Google Scholar

Copyright information

© Kwasi Kwarteng, Ryan Bourne, Jonathan Dupont 2015

Authors and Affiliations

  • The Free Enterprise Group
    • 1
  • Kwasi Kwarteng
  • Ryan Bourne
    • 2
  • Jonathan Dupont
    • 3
  1. 1.UK
  2. 2.Institute of Economic AffairsUK
  3. 3.Policy ExchangeUK

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