This study examines the European energy policy of the last few years, highlighting certain shortcomings in the European emission trading scheme (Ets) and the rate of transition towards renewable resources. As emerges from the analysis, despite the past difficulties experienced in achieving its targets in terms of emissions reduction and proportion of renewable resources, the European Union has set even more ambitious goals for the future. However, this policy of raising and postponing the target, together with some drawbacks in the Ets, may generate time consistency problems that can hamper Europe’s capacity to achieve its energy targets.
Keywords: Climate change, Energy policy, European union, Emission trading system (Ets), Renewable energy sources, Time consistency
Jel Code: L110, Q280, Q380, Q420, Q430, Q480