This paper presents a framework to evaluate the effectiveness of energy policies and provides a contextual view of measures on energy polices in linking with the objective of a sustainable economy. Firstly, Taiwan's energy policy is overviewed by analyzing the energy-related data to examine its deficit according to the framework presented. This paper finds that the energy policy adopted fails to attain the objective of a sustainable economy because energy consumption and CO(2) emissions still keep upward trends. It also concludes that an energy policy should focus on (1) improving energy efficiency, (2) reshaping industry structure and (3) improving energy structure. In other words, the energy policy maker should create an environment that can motivate the development of clean energy supply and utilization for the achievement of energy policy objectives. (C) 2011 Elsevier Ltd. All rights reserved.