In A Framework for a New U.S. Energy Policy,Institute CEO William O’Keefe and Institute President Jeff Kueter outline principles to guide the development of U.S. energy policy in the years to come. Drawing on the lessons learned from years of ad hoc policy approaches to energy issues, the report details “the basic lessons learned over the past two decades,” which are that:
- markets do work;
- government actions should focus on aiding their workings, not supplanting or redirecting them or imposing barriers based on ideology;
- abundant, competitively priced energy is essential for robust economic growth;
- subsidies or similar industrial policy actions generally do more harm than good; and
- a collaborative relationship between government and private industry should be built on the comparative advantages of each.
The report reviews the evolution of U.S. energy policy, discusses the effectiveness of those approaches, and considers the forces affecting the energy marketplace today.
The authors conclude: “In essence, our approach demands that policymakers, the energy industry, and the public reject the industrial policy approaches that have characterized policy, programs, and budgets and embrace the role for government that shapes, rather than directs, the energy market.”