OED Workshop

Regulation and Deregulation of Energy Sectors
in the 20th Century

December 2-4, 2009, University of Jyväskylä, Finland
Conference Info

Conference Program

Updated December 2, 2009

Wednesday, December 2, 2009:

6-9 PM:
Welcome Reception at Cartographica (4th floor – use elevator, Historica Building, University of Jyväskylä)

Thursday, December 3, 2009:

9.30-10 AM:
Meeting with the staff of the Department of History and Ethnology (Room 306, Historica) – Short presentation of the Department and all participants of the workshop are kindly asked to introduce themselves briefly. (Coffee)

10-11.45 AM:
Opening Session – Room H320 (Historica)

• Opening Remarks: Jari Ojala (Professor, Head of the Department of History and Ethnology, University of Jyväskylä)
• Keynote Adress: U.S. ELECTRIC UTILITY SECTOR IN THE 20th CENTURY, William J. Hausman (Professor, College of William & Mary, USA)
  Abstract: Show Hide Paper: PDF Presentation: PDF

  The U.S. Electric Utility Sector in the 20th Century: The Role of Technology, Economics, and Politics in Regulation and Deregulation

  William J. Hausman (College of William & Mary)

  Abstract: This paper traces the role played by technology, economics, and politics in the history of electric utility regulation and deregulation in the Unites States from the beginning of the 20th century through the aftermath of the California energy crisis of 2000-01. The history of electric utility regulation in the U.S. was determined partly by the technology of electric power production, transmission, and distribution, partly by the economics of the industry, especially its high fixed cost structure, and partly by the politics surrounding the industry, particularly the public versus private ownership debate. These factors influenced the institutions that were created to regulate the industry, a process complicated greatly by U.S. federalism, where both states and the federal government played a role in regulation and deregulation (or more appropriately, restructuring). Rivalry between states and the federal government sometimes hindered the imposition of effective regulation, thereby leading to demands for deregulation.

11.45 AM-1.00 PM:
LUNCH BREAK AT RESTAURANT ALVARI

1.00–2.45 PM:
Session 1. REGULATORY TRAJECTORIES I – Room 320
COUNTRIES DEPENDENT ON FOSSIL FUEL IMPORTS
CHAIR: Vilma Luoma-aho (University of Jyväskylä)

• Seung-Joon Park (Kyoto Sangyo University, Japan): REGULATORY TRAJECTORIES IN JAPAN AFTER THE WW2
  Abstract: Show Hide Paper: PDF

  Regulatory Trajectories in Japan After the WW2

  Park, Seung-Joon (Kyoto Sangyo Univ. Japan)

  The energy regulation in post-war Japan has been historically influenced by external turbulences. During the high-growth period (1955-73), the cheap and abundant oil supply enabled Japan to become the second greatest economic power in the world, for all the pollution problems. But the "oil shock" and following high oil price since 1973 forced Japan to deal with the side-effects of growth by regulations for energy saving and pollution control, which made Japan the world leader of eco-efficiency. The nuclear power which requires several safety regulations and "public acceptance" measures, on the other hand, has not necessarily been boosted by the oil crises, its construction namely does not seem historically dependent on the oil price. As the oil price in Japan went down after 1986, the efficiency improvement has stagnated, but several deregulation policies have aimed at pushing the energy price down. After 1991, although the climate change became global issue, Japan's energy demand went up constantly in spite of the economic slump. Promising policy instruments for climate policy such as carbon tax, emissions trading or feed-in tariff for renewable energies could not be implemented under the old LDP regime, but the new government may break the stalemates.

• Esa Ruuskanen (University of Jyväskylä, Finland): REGULATORY TRAJECTORIES IN FINLAND: HOW TO FOSTER THE USE OF ALTERNATIVE ENERGY SOURCES
  Abstract: Show Hide Presentation: PDF

  Not yet available.

• Niklas Jensen-Eriksen (University of Helsinki, Finland): THE NEVER-ENDING QUEST FOR CHEAP POWER: BUSINESS, GOVERNMENT AND THE FORMULATION OF NUCLEAR ENERGY POLICY IN FINLAND
  Abstract: Show Hide Paper: PDF

  The never-ending quest for cheap power: Business, government and the formulation of nuclear energy policy in Finland

  Niklas Jensen-Eriksen (University of Helsinki)

  In 2002, the Finnish Government and Parliament gave the energy company TVO the permission to build the country’s fifth nuclear reactor. The decision attracted a lot of attention in other industrialised countries, because the construction of a huge 1,600 Megawatt unit seemed to symbolize the resurrection of nuclear power in Europe. Some observers even claimed that Finland had become the “promised land of nuclear energy”. Yet, I am arguing that the resurrection of nuclear energy in Finland does not reflect only general international developments, but even more the special characteristics and history of the Finnish manufacturing industries. From the 1970s onwards, the forest industry companies, which traditionally formed the backbone of the Finnish economy and later also some other energy- hungry industries, began to see cheap and abundant energy as a key component of their business strategies. However, Finnish companies or enterprises in other countries have not been able to freely construct nuclear plants, because governments have played a crucial role as regulators. In Finland, political disputes and environmental considerations have often undermined attempts to expand nuclear energy capacity. The industry had been campaigning for a fifth nuclear reactor since the early 1980s, and it took roughly twenty years before they finally got the permission to build it.

DISCUSSANTS: Andrei Belyi (Park), and Henrik Björnebye (Ruuskanen & Jensen-Eriksen)

2.45-3.15 PM:
COFFEE BREAK

3.15-5.00 PM:
Session 2. REGULATORY TRAJECTORIES II – Room 320
OIL AND NATURAL GAS EXPORTING COUNTRIES & EU-ISSUES
CHAIR: Jari Eloranta (Appalachian State University)

• Andrei V. Belyi (Moscow Higher School of Economics, Russia): PAST AND CURRENT EU-RUSSIA ENERGY RELATIONS
  Abstract: Show Hide

  Not yet available.

• Henrik Björnebye (University of Oslo, Norway): NORWEGIAN ENERGY REGULATION: PAST, PRESENT, FUTURE
  Abstract: Show Hide Paper: PDF

  Not yet available.

• Kim Talus (University of Helsinki, Finland): EVOLUTION OF SECTOR REGULATION AND GENERAL COMPETITION LAW IN THE EU
  Abstract: Show Hide

  Not yet available.

DISCUSSANT: Lauge Skovgaard Poulsen (Belyi & Björnebye), and Christian Lyhne Ibsen (Talus)

7.30-11.00 PM:
DINNER AT RESTAURANT VESILINNA

Friday, December 4, 2009

10.00-11.45 AM:
Session 3. INSTITUTIONAL ENVIRONMENT OF ENERGY SECTORS - Room 320
THEORIES, VALUES, PUBLIC OPINION
CHAIR: Ilkka Nummela (University of Jyväskylä)

• Christian Lyhne Ibsen (University of Copenhagen, Denmark) & Lauge Skovgaard Poulsen (London School of Economics, UK): PATH DEPENDENCE AND INDEPENDENT UTILITY REGULATION: THE CASE DANISH ENERGY AND TELECOMMUNICATIONS REGULATION
  Abstract: Show Hide Paper: PDF

  Path Dependence and Independent Utility Regulation: The Case Danish Energy and Telecommunications Regulation

  Christian Lyhne Ibsen (University of Copenhagen, Denmark) & Lauge Skovgaard Poulsen (London School of Economics, UK)

  The establishment of the Danish independent regulatory authorities for the energy and telecommunications sectors was based upon EU directives as part of their liberalisation process. Following the concepts of transaction costs and path dependency this article analyses differences in independence between the two authorities - the Danish Energy Regulatory Authority (Energitilsynet – DERA) and the National IT and Telecommunications Agency (IT- og Telestyrelsen – NITA) respectively. We find that the state's negligible interest in the energy sector until the 1970s formed the basis for strong energy companies capable of influencing regulation in their interest. This condition made DERA relatively dependent on commercial interests compared to NITA. In contrast, the state had an early interest in controlling and regulating telecommunications services, which meant strong control of the telecommunications companies and a regulation contingent upon political interests that has continued to this day. We therefore suggest that sector-specific institutional processes have caused differences between the regulatory institutions mediating the influence of the EU.

• Jari Eloranta (Appalachian State University, USA): NEW INSTITUTIONAL ECONOMICS AS A FRAMEWORK FOR STUDYING ENERGY REGULATION
  Abstract: Show Hide Paper: PDF

  Not yet available.

• Antti Malinen (University of Tampere, Finland): BIASED AND UNJUST REGULATION: CRITICISM AGAINST POST WAR RENT REGULATIONIN IN FINLAND
  Abstract: Show Hide Paper: PDF

  Biased and Unjust Regulation: Criticisms Against Post-War Rent Regulation in Finland

  This paper studies how and through which rhetorical strategies rent regulation was criticized when it was being enacted during post-war transition period in Finland.

  World War II created economical and social issues that required immediate attention after the war, but which took many years to resolve. One of the most difficult problem in the Finnish cities was housing shortage. At the end of World War II, Finland faced a severe housing crisis: about 14,000 apartments had been severely damaged during the war and only a small amount of new housing had been built from 1939 to 1944. It was estimated that in the cities the shortage was 52,000 apartments. Government was forced to act quickly, and rent control was passed as a way to mitigate housing shortage. Debate over desirability of rent control and housing regulation became one of the major political debates during postwar transition period.

  Housing regulation aroused a great variety of criticisms from tenants, home owners, and property owner interest groups. Property owners addressed the inherent limitations of rent regulation and tried to argue why rent control was the wrong tool in solving housing crisis. Some of the tenants on the other hand critized the emergence of different tenant classes – the privileged pre-war tenants living in old houses costs – and the others, who lived either in newer and more expensive buildings or as subtenants.

  To put it shortly, different groups of citizens were unhappy and dissatisfied with different aspects of rent regulation. Because of rent regulation’s redistibutive nature people evaluated the outcome for themselves and others. Perceived injustices were used as argumentative base for criticism. In this paper, using findings from research on the post-war rent regulation in Finland, I demonstrate which kinds of criticism citizens and interest-groups launched against regulatory practices. Furthermore, I analyze which kind of rhetorical strategies citizens and interest-groups used in their criticisms. The study of criticisms makes it possible to reconstruct citizens legitimacy beliefs concerning regulatory practices.

  I apply conceptual history approach which emphasizes the study of conceptual change in a political culture. Aim of this paper is to locate the main argumentative strategies and the key concepts which were used by citizens and interest groups as they criticized regulatory practices. Theoretical references of this paper are mainly derived from agenda research and regulation theories.(Julia Black, Cobb & Ross 1997, Jyrki Tala 1999) As a point of comparison, I also rely on Breyers (1982) study on “Regulation and Its Reform”. Breyer has analyzed typical forms of criticisms of regulation. Primary data collection method has been archival data gathering.

DISCUSSANTS: William J. Hausman (Ibsen & Poulsen, and Eloranta), and Talus (Malinen)

11.45 AM–12.45 PM:
LUNCH BREAK AT RESTAURANT ALVARI

12.45-2.00 PM:
Session 4. INSTITUTIONAL ENVIRONMENT OF ENERGY SECTORS II - Room 320
THEORIES, VALUES, PUBLIC OPINION
CHAIR: Ilkka Nummela (University of Jyväskylä)

• Vilma Luoma-aho (University of Jyväskylä, Finland): MONITORING THE COMPLEXITIES: ISSUE ARENAS OF NUCLEAR POWER
  Abstract: Show Hide

  Not yet available.

• Turo Uskali (University of Jyväskylä, Finland): EVOLUTION OF NEWS: CASE BIOENERGY
  Abstract: Show Hide Presentation: PDF

  Evolution of News: Case Bioenergy

  Turo Uskali (University of Jyväskylä, Finland)

  Mass media has for along been the single most important medium for spreading new ideas and concepts. The agenda-setting role of news media in societies is widely accepted. In this presentation a narrative and summary is provided about the evolution of bioenergy news in the world’s leading newspaper The New York Times. First of all, the definition of ‘bioenergy’ was first as ’psychic energy’. The first story mentioning bioenergy as a renewable energy source was published in 1983. However, according to this study, bioenergy as a topic went main stream not until 2006. Furthemore, the number of bioenergy stories peaked in 2007 in the print version of The New York Times. Finally, the influence of the Internet in journalism is especially seen in many blogs like Green Inc., where bioenenergy news still boomed in 2009.

DISCUSSANT: Park Seung-Joon (Luoma-aho & Uskali)

2.00-3.00 PM:
Concluding Discussion, led by Esa Ruuskanen, Jari Ojala, and Jari Eloranta

WORKSHOP ENDS