Gov't Intervention Forms
Common Forms of Government Interventions in Energy Markets
|Policies governing the terms of access to domestic on-shore and off-shore resources (e.g., leasing).
|Policies that reduce costs to particular types of customers or regions by increasing charges on other customers or regions.
|Direct budgetary outlays for an energy-related purpose.
|Government ownership of all or a significant part of an energy enterprise or supporting service organization.
|Restrictions on the free market flow of energy products and services between countries.
|Provision of market-related information that would otherwise have to be purchased by private market participants.
|Below-market provision of loans or loan guarantees for energy-related activities. Price Controls‡ Direct regulation of wholesale or retail energy prices.
|Required purchase of particular energy commodities, such as domestic coal, regardless of whether other choices are more economically attractive.
|Research and Development*
|Partial or full government funding for energy-related research and development.
|Government regulatory efforts that substantially alter the rights and responsibilities of various parties in energy markets, or exempt certain parties from those changes.
|Government-provided insurance or indemnification at below-market prices.
|Special tax levies or exemptions for energy-related activities.
|*Interventions included within the realm of fiscal subsidies.
†Tend to increase costs to industry.
‡Can act either as a subsidy or a tax depending on program specifics.
|Source: Koplow, 1998 (OECD 11/25/98).