Are Hugs, Carrots and Sticks Essential for Energy Policy: A Study of Latvia’s National Energy and Climate Plan

The purpose of the study was to analyse Latvia’s NECP2030 impact on energy user by identifying the activities/policy measures by their type and their impact on the choices and actions of energy users. The goal of the Latvian National Climate and Energy Plan for 2030 (NECP2030) is to achieve changes in the use of energy with a possibly better impact on climate and environment. Energy user, its choices and action play an essential role in achieving this goal. Latvia’s NECP2030 has 12 activity groups each encompassing one or more activity clusters with several specific activities and policy measures that are intended to influence the use of energy resources and energy. The method of hugs, carrots and sticks was used to categorise activities and through applying literature analysis on policy goals and most appropriate policies identify whether the chosen activities are adequate to achieve NECP2030 goals. The study concludes that in case of four activity groups the identified activities might not be sufficient as literature suggests that more stringent measures are recommended to effectively achieve certain policy goals.