Energy security, affordability and sustainability. How to incentivise the market in the right direct

This lecture will explore how energy efficiency can simultaneously advance energy security, sustainability, and affordability. Against the backdrop of global energy transitions, rising renewable deployment, and price volatility, we will examine energy efficiency as a strategic response to market failures such as carbon externalities and information asymmetries. The lecture will focus on the role of environmental policy instruments—such as subsidies, and environmental taxes — in driving energy-efficient investment. Emphasis will be placed on assessing which policy tools and combinations (policy mixes) are most effective, supported by the latest empirical evidence.