Industries & Issues: Energy

Competition policy typically is thought of as a mechanism to keep prices low and to increase consumption-seemingly the opposite of what is required to reduce the nation's energy woes related to the use of and dependence on fossil fuels. Yet competition policy has an important but challenging role to play in promoting the energy policy goal of leveling the playing field for lower-carbon, more efficient fuels and technological innovation. Massive restructuring in both the electricity and petroleum industries emphasizes the importance of rigorous merger review and good market design in paving the way for a shift in the energy equilibrium in the U.S. The AAI believes both traditional energy markets and the relatively new markets for carbon emissions allowances can all benefit tremendously from the principles of competition. For an overview of AAI's positions, read the Energy chapter from AAI's report "The Next Antitrust Agenda."