How do policy decisions shape energy resource and technology decisions?

Policy decisions can have a significant impact on energy resources and technology decisions. Policies that are designed to promote certain energy sources, discourage others, provide economic incentives, and regulate emissions or pollution can all shape the types of energy sources and technologies available to the public. For example, governments may create tax incentives for renewable sources of energy such as solar and wind or introduce emissions standards that punish companies that pollute the air or water. By putting in place these types of regulations, governments can encourage businesses, consumers, and energy companies to invest in cleaner energy sources and technologies.