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Governing the Energy Challenge

Governing the Energy Challenge: Canada and Germany in a Multilevel Regional and Global Context

Copyright Date: 2009
Pages: 416
  • Book Info
    Governing the Energy Challenge
    Book Description:

    Governing the Energy Challengeis a comparative study between Canada and Germany that features essays by leading energy and public policy specialists from both countries.

    eISBN: 978-1-4426-9748-5
    Subjects: Political Science

Table of Contents

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  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-viii)
  3. Preface
    (pp. ix-x)
    Burkard Eberlein and G. Bruce Doern
  4. Abbreviations
    (pp. xi-2)
  5. 1 German and Canadian Multi-Level Energy Regulatory Governance: Introduction, Context, and Analytical Framework
    (pp. 3-37)

    The purpose of this book is to investigate and compare the dynamics of multi-level energy regulatory governance in Germany and Canada. Regulatory governance is a response to energy policy challenges that include a renewed emphasis on energy security as well as on environmental sustainability in a global and competitive resource economy. We argue that todayʹs energy policy faces unprecedented challenges that arise from mounting tensions between core policy goals in a context of increasing interdependence and fast-changing internationalization. The governance of these challenges increasingly involves multi-level patterns of interaction across established territorial and functional boundaries.

    The basic logic of the...

  6. 2 Mapping the Energy Challenges: Germany and Canada in Comparative Context
    (pp. 38-68)

    As a broad context for the chapters that follow, this chapter maps and examines the overall nature of the energy challenges underpinning contemporary multi-level energy regulatory governance. As stressed in chapter 1, the prime focus of energy governance is not on institutions and processes or politics and economics somehow disembodied from the substance and content of the energy field. Accordingly, this bookʹs conceptual framework – centred on complexity, coordination, and capacity – seeks to include real-world energy capacities: to deliver useable and reliable mixes of energy goods and services to citizens of nation states and their regional neighbours at reasonable...


    • 3 Electricity Restructuring in the Provinces: Pricing, Politics, Starting Points, and Neighbours
      (pp. 71-98)

      Economists like restructuring because it should improve efficiency. Competitive forces in the generation sector should squeeze the inefficiency out of monopoly generators, while market discipline should lead to better investment decisions. The wholesale price should reflect marginal cost, and passing this price to consumers should lead to optimal energy use and conservation, allowing the price to equate supply and demand in every hour of every day. But competitive electricity markets are artificial markets with extensive rules for all participants arising from the complex interconnections of the electricity network. Governments or regulatory agencies oversee market design and the operation and maintenance...

    • 4 The Governance of Energy in North America: The United States and Its Continental Periphery
      (pp. 99-121)

      Since the North American Free Trade Agreement came into force on 1 January 1994, comparing the two regionalisms on either side of the Atlantic Ocean has become an intellectually tempting but academically risky endeavour. Transatlantic comparisons are intellectually tempting because the European Union and North America are so similar in size (whether measured by population or gross national product) and similar in culture (whether measured by common heritage or linked histories). But such exercises are academically problematic, because the very act of looking at NAFTA in the context of the European Union leads most analysts to assume that the former...

    • 5 Nuclear Energy in Germany and Canada: Divergent Regulatory Policy and Governance Paths
      (pp. 122-146)

      Chapters 1 and 2 have already briefly noted the different roles that nuclear energy plays in Germany and Canada, with Germany phasing out its nuclear reactors as an explicit policy choice and Canada retaining nuclear power as an option in its energy mix, mainly in Ontario. Deweesʹ analysis in chapter 3 also showed how nuclear reactor problems in Canada were a part of the eventual restructuring of Ontarioʹs electricity system. In this chapter, we look more closely at how multi-level regulatory policy and governance coordination and the underlying complexity and capacity configurations of the two countries produced these two different...

    • 6 National or Supranational Electricity Governance – NAFTA and the EU: Electricity Market Reforms in Canada and Germany
      (pp. 147-173)

      This chapter examines whether supranational governance allows member states of the EU and NAFTA to make national choices in reforming their electricity markets. Examining the supranational directives and the path of national implementation to reform the electricity sectors in Canada and Germany contributes to understanding to what extent nation states can pattern these reforms. After establishing Germanyʹs and Canadaʹs supranational context, both countries are assessed for reform policy outcomes in national regulation, access to transmission systems, vertical de-integration, and anticipated competition.

      The analysis shows that both countries show nationally specific patterns of electricity market reform. This result can be attributed...

    • 7 The EU Single Energy Market and Multi-Level Interaction
      (pp. 174-198)

      Whereas the previous chapter by Froschauer has presented a comparative overview of how the different supranational frameworks of EU and NAFTA respectively affect electricity reform paths in Canada and Germany, this chapter deals explicitly with the challenge of multi-level governance coordination within the specific EU setting. It explores the complex multi-layered interaction between multiple regulatory bodies and stakeholders in the implementation of EU market reforms.

      More specifically, it addresses two themes of the analytical framework developed in chapters 1 and 15 of this volume. It discusses the politicalcomplexityof energy market reforms in a large and heterogeneous space occupied...


    • 8 Multi-level Energy Regulatory Governance in the Canadian Federation: Institutions, Regimes, and Coordination
      (pp. 201-225)

      Energy regulatory governance in the Canadian federation is inherently multi-level.² Given the highly decentralized division of powers over energy in the Canadian Constitution, energy policymaking has long been a process of federal-provincial bargaining (Doern and Gattinger 2003). Canadian energy regulatory governance is also multi-level in that it is embedded within a complex of relations at other vertical levels – international, regional, local, etc. In addition, energy regulatory governance in Canada involves a horizontal layering of governance processes across key regulatory regimes: energy regulatory governance comprises not only the sectoral regime for energy, but also horizontal regimes, including those for the...

    • 9 An Integrated Canadian Electricity Market? The Potential for Further Integration
      (pp. 226-258)

      Both chapter 2 and Deweesʹ analysis in chapter 3 show that Canada overall lacks a national integrated electricity market. However, Deweesʹ account of electricity restructuring in the provinces also shows the importance of neighbours and starting points as factors in successful restructuring. In this chapter, I extend this key point further and argue that many economic and environmental reasons justify more integration among provincial electricity markets in Canada. Although the current political situation, as both the Gattinger and Metz and Doern chapters show, prevents or severely limits such an institutional change from happening, in part due to both coordination and...

    • 10 The Transformation of German Energy Regulation: Struggling with Policy Legacy
      (pp. 259-284)

      This chapter investigates the evolution of the complex and multi-layered system of German energy market regulation since markets were opened to competition. As such, it complements the comparative Canadian-German analysis in chapter 6 by Froschauer, by providing important background and details on regulatory issues, actors, processes, and outcomes in the German case. The chapter speaks in particular to the theme of technical and politicalcomplexity, as developed in the analytical framework in chapters 1 and 15. It shows, similar to Deweesʹ analysis in chapter 3 on electricity restructuring in Alberta and Ontario, that successful market creation is extremely demanding, prone...

    • 11 Talking without Walking: Canadaʹs Ineffective Climate Effort
      (pp. 285-313)

      Since the late 1980s, Canada has been an active participant in international negotiations to limit emissions of greenhouse gases (GHG) in order to reduce the risk of human-induced climate change. In these processes it has made several commitments to decrease its domestic GHG emissions. To meet these commitments, the governmentʹs dominant policy approach has been to provide information and subsidies to encourage Canadian businesses and consumers to voluntarily shift to technologies and lifestyles that reduce GHG emissions.

      As chapters 1 and 2 have shown, however, during this period domestic GHG emissions have continued to rise and the countryʹs GHG trajectory...

    • 12 Still Walking the Talk? German Climate Change Policy and Performance
      (pp. 314-343)

      Few countries seem to be further apart on the scoreboard of climate protection than Canada and Germany. As the previous chapter by Rivers and Jaccard has shown, Canada is a ʹleading laggardʹ in the reduction of greenhouse gases (GHG). Germany, by contrast, has been, since the mid-1980s, at the forefront of domestic and international efforts to combat climate change by limiting GHG emissions. As early as June 1990, the federal (West German) government adopted a reduction target for energy-related carbon dioxide (CO2) emissions of 25–30 per cent until 2005, compared to 1987 levels. And under the 1997 Kyoto Protocol,...

    • 13 EU Emission Trading and National Allocations Plans 2005–2007: The Case of Germany
      (pp. 344-372)

      While the previous two chapters by Rivers and Jaccard and Weidner and Eberlein contrast Canadian and German approaches and achievements in overall climate protection policies, this chapter probes one of the key instruments in the European toolbox to reduce greenhouse gas (GHG) emissions, the EU cap-and-trade emissions system. Based on a detailed analysis of the first implementation phase in Germany, the chapter reveals the technical and political complexity of introducing new approaches and instruments in a policy domain where vested economic interests are exceptionally strong.

      The outcomes have been sobering and disappointing. As result of a highly political process with...

    • 14 Renewables in Electricity Generation: Germany as Pioneer?
      (pp. 373-395)
      LUTZ MEZ

      The previous three chapters have examined the performance of climate protection policies of Canada and Germany, with one chapter dedicated to the implementation of the EU cap-and trade instrument in Germany in particular. This chapter probes the most important and successful instrument in Germanyʹs toolbox to reduce greenhouse gas (GHG) emission: the promotion of renewable energy sources for electricity generation (RES-E) through a feed-in tariff. The chapter underscores two major points that also emerged from the previous three chapters. Firstly, strong public policies with a high degree of compulsoriness (and consistency) are required to achieve significant progress, although they may...

  9. 15 Conclusions: Complexity, Coordination, and Capacity in German and Canadian Energy Regulatory Governance
    (pp. 396-426)

    This book has investigated and compared the dynamics of multi-level energy regulatory governance in Germany and Canada. Regulatory governance has been conceptualized as a response to energy policy challenges that include a renewed emphasis on energy security as well as on environmental sustainability in a global and competitive resource economy. We argue that todayʹs energy policy faces unprecedented challenges that arise from mounting tensions between core policy goals in a context of increasing interdependence and rapid internationalization. The governance of these challenges increasingly involves multi-level patterns of interaction across established territorial and functional boundaries.

    As set out in chapter 1,...

  10. Glossary
    (pp. 427-430)
  11. Contributors
    (pp. 431-434)