Regulation, 'Republican Moments,' and Energy Policy Reform

Abstract

Recent political attention to the task of energy policy reform has generated a great deal of debate, and considerable legislative activity, but not the kind of fundamental change that proponents of reform seek. The push for energy policy reform today is driven by a groundswell of concern over environmental issues (primarily, climate change), energy security issues, and the desire for a more efficient and reliable energy delivery system. A similar groundswell during the 1970s produced sweeping environmental regulation of energy production and policy change aimed at promoting a cleaner, more efficient energy mix. These changes were enacted over the mostly cost-based objections of business interests. This sort of republican moment - when best interests prevail over organized, well-heeled business interests in the legislative process - has eluded modern energy policy reformers, however. The reasons are rooted in both the political logic and the political psychology of energy policy reform in the 21st century. Specifically, even more so than during the reform debates of the 1970s, today’s reform agenda is more technically and politically complex, making the benefits of reform (or costs of inaction) seem unclear and remote to many voters. Furthermore, the costs of reform fall upon current voters while many of the benefits accrue to others. For these reasons and others, political entrepreneurs on the right have been able to outmaneuver those on the left, sufficiently dampening support for fundamental energy policy reform.