Gov't Intervention Forms
Common Forms of Government Interventions in Energy Markets
|Access‡||Policies governing the terms of access to domestic on-shore and off-shore resources (e.g., leasing).|
|Cross-Subsidy‡*||Policies that reduce costs to particular types of customers or regions by increasing charges on other customers or regions.|
|Direct Spending*||Direct budgetary outlays for an energy-related purpose.|
|Government Ownership*||Government ownership of all or a significant part of an energy enterprise or supporting service organization.|
|Import/Export Restriction†||Restrictions on the free market flow of energy products and services between countries.|
|Information*||Provision of market-related information that would otherwise have to be purchased by private market participants.|
|Lending*||Below-market provision of loans or loan guarantees for energy-related activities. Price Controls‡ Direct regulation of wholesale or retail energy prices.|
|Purchase Requirements†||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.|
|Regulation‡||Government regulatory efforts that substantially alter the rights and responsibilities of various parties in energy markets, or exempt certain parties from those changes.|
|Risk*||Government-provided insurance or indemnification at below-market prices.|
|Tax*‡||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).|