Despite commitments to renewable energy and two decades of international negotiations, global emissions continue to rise. Coal, the most damaging of all fossil fuels, has actually risen from 25% to almost 30% of world energy use. And while European countries have congratulated themselves on...

The paper critiques current European energy policy. The key market failures are identified and the reasons for intervention set out. In addition to the traditional concerns with monopoly and market failures, the public goods aspects of diversity and security of supply, together with...