From Energy Security to Environmental Protection: Understanding Swings in the Energy Policy Pendulum

Energy policies of petroleum-importing countries are not determined only by the price of oil. Since 1973 energy policy has also responded to changing perceptions of externalities associated with the energy system and the appropriate role for government in the economy. In that spirit, this article explores the parallels between the quest for energy security 20 years ago and for global environmental protection at present. The latter explains why the argument that government intervention in the energy sector should be minimized is once again viewed critically.