Energy Policy Solutions

Energy Policy Solutions

Energy Policy Solutions (EPS) helps policymakers identify and implement efficient and cost-effective policies to accelerate our path to a low-carbon future

Energy is a mammoth portion of the global economy.  Every year, the world spends trillions of dollars on energy and on the capital equipment that generates or consumes energy.  Most energy infrastructure is built to last for decades, which makes it crucial that we get energy policy right.  Done correctly, energy policy can improve energy security and minimize pollution at no additional cost (or even net savings) to the economy. Done wrong, energy policy can waste billions of dollars and lock in dirty, inefficient systems for decades to come.

Our Work

Energy Innovation strives to answer two key questions:

  1. Which policies will be most meaningful in reducing emissions, and how stringently must they be set?
  2. How should these policies be designed and implemented so as to maximize their beneficial interactions, ensure compliance, and avoid unintended consequences?

We address the first question through our Energy Policy Simulator, a free and open-source computer model that estimates the environmental, economic, and human health impacts of hundreds of climate and energy policies.  Energy Innovation has developed a U.S. version of the simulator and has partnered with a handful of international organizations and government agencies to develop models for China, Mexico, and Indonesia—with more to come.  Together, these countries represent 42 percent of global emissions.

Energy Innovation has used the simulator to evaluate the impacts of policy or program announcements, as well as to identify policies that would achieve policymakers’ goals. Domestic examples include predicting the impact of repealing the Clean Power Planrolling back fuel economy standards on cars, and predicting how policy changes and technology prices may impact the future of electric vehicles.


Foreign examples include identifying policies that would enable Mexico to achieve its emissions targets and allow China to peak its CO2 emissions before 2030.

Policy Contributions to Meet Mexico’s Unconditional Emission Reduction Target

We will address the second question in a policy design guidebook (scheduled for released in Fall 2018).  The guidebook explains best practices and principles for designing policies to decarbonize the economy and includes case studies from around the world.

You can try out the simulator in your web browser or download the full model at


The Energy Policy Solutions Team