We analyze optimal policy when consumers of energy-using durables undervalue energy costs relative to their private optima. First, there is an Internality Dividend from Externality Taxes: aside from reducing externalities, they also offset distortions from underinvestment in energy efficiency....

Contents: Preface Introduction to transforming energy systems -- Part I. Modernity, the climate and net zero emissions -- 1. Energy capture and modernity -- 2. Useful energy and the climate -- 3. Net zero emissions and low-carbon alternatives -- Part II. Advancing and guiding low-carbon...