This　research　paper　tackles　two　contemporary　energy　issues　which　affect　the　future　of　the　Island　of　A　Country.　The　first　issue　is　concerned　with　finding　an　optimal　level　of　taxation,　which　on　the　one　hand　satisfies　the　financial　needs　of　the　government　but　on　the　other　hand　does　not　hinder　economic　growth.　A　System　Dynamics　Model　is　used　to　analyse　the　optimal　level　of　not　only　taxation　but　also　looks　at　using　subsidies　to　provide　incentives　for　a　renewable　energy　market.　The　second　issue　concerns　the　effect　of　PM10　emissions　on　the　Country　Adeath　rate　and　uses　the　same　model　to　suggest　methods　of　reducing　PM10　emissions　through　implementing　energy　efficiency　levels.　The　aim　of　the　research　is　analyse　the　above　mentioned　issues　and　their　long　term　impacts　within　various　sectors;　not　only　where　the　economy　is　concerned　but　also　the　affects　the　policies　might　have　on　the　social　and　environmental　sectors　of　Country　A.