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The Making of the European Energy Market: The Interplay of Governance and Government

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  • EBERLEIN, BURKARD

Abstract

This case study asks whether delegated, sectoral governance by private actors and arm’s-length agencies enhances policy efficacy or does sectoral governance require a shadow of hierarchy cast by government actors to deliver desired policy results? EU energy market liberalisation shows that sectoral governance successfully mobilises regulatory expertise, capacity and legitimacy and delivers workable norms and rules for market transactions in a complex policy environment. However, it also finds that the efficacy of sectoral governance mechanisms is constrained by distributive conflicts between different national jurisdictions and sector interests. If deadlock occurs, the European Commission as governmental principal casts a double shadow of hierarchy over sectoral governance agents: the threat of further legislation and of EU competition law. While both instruments enhance policy efficacy, they cannot substitute for the intrinsic rule-making qualities of sectoral governance: governance and government play complementary roles in the policy process.

Suggested Citation

  • Eberlein, Burkard, 2008. "The Making of the European Energy Market: The Interplay of Governance and Government," Journal of Public Policy, Cambridge University Press, vol. 28(1), pages 73-92, April.
    • Handle: RePEc:cup:jnlpup:v:28:y:2008:i:01:p:73-92_00
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    Citations

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    Cited by:

    1. Tanja Börzel, 2010. "European Governance: Negotiation and Competition in the Shadow of Hierarchy," Journal of Common Market Studies, Wiley Blackwell, vol. 48(2), pages 191-219, March.
    2. LaBelle, Michael Carnegie, 2017. "In pursuit of energy justice," Energy Policy, Elsevier, vol. 107(C), pages 615-620.
    3. Torriti, Jacopo, 2014. "Privatisation and cross-border electricity trade: From internal market to European Supergrid?," Energy, Elsevier, vol. 77(C), pages 635-640.
    4. repec:bla:jcmkts:v:48:y:2010:i::p:191-219 is not listed on IDEAS
    5. Maher, Imelda & Stefan, Oana, 2019. "Delegation of powers and the rule of law: Energy justice in EU energy regulation," Energy Policy, Elsevier, vol. 128(C), pages 84-93.
    6. Sandra Eckert, 2018. "Two spheres of regulation: Balancing social and economic goals," Regulation & Governance, John Wiley & Sons, vol. 12(2), pages 177-191, June.
    7. Rinne, Sonja, 2018. "Radioinactive: Are nuclear power plant outages in France contagious to the German electricity price?," CIW Discussion Papers 3/2018, University of Münster, Center for Interdisciplinary Economics (CIW).
    8. Aad Correljé & Martijn Groenleer & Jasper Veldman, 2013. "Understanding institutional change: the development of institutions for the regulation of natural gas transportation systems in the US and the EU," RSCAS Working Papers 2013/07, European University Institute.
    9. Halkos, George, 2020. "Examining the level of competition in the energy sector," MPRA Paper 98343, University Library of Munich, Germany.
    10. Bernardo Rangoni & Jonathan Zeitlin, 2021. "Is experimentalist governance self‐limiting or self‐reinforcing? Strategic uncertainty and recursive rulemaking in European Union electricity regulation," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 822-839, July.
    11. Nicoli, Francesco & van der Duin, David & Burgoon, Brian, 2023. "Which Energy Security Union? An experiment on public preferences for energy union alternatives in 5 western European countries," Energy Policy, Elsevier, vol. 183(C).
    12. Eckert, Sandra, 2020. "EU agencies in banking and energy between institutional and policy centralisation," SAFE Working Paper Series 278, Leibniz Institute for Financial Research SAFE.
    13. Nicolas Schmid & Leonore Haelg & Sebastian Sewerin & Tobias S. Schmidt & Irina Simmen, 2021. "Governing complex societal problems: The impact of private on public regulation through technological change," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 840-855, July.
    14. LaBelle, Michael, 2012. "Constructing post-carbon institutions: Assessing EU carbon reduction efforts through an institutional risk governance approach," Energy Policy, Elsevier, vol. 40(C), pages 390-403.
    15. Tosun, Jale & Solorio, Israel, 2011. "Exploring the Energy-Environment Relationship in the EU: Perspectives and Challenges for Theorizing and Empirical Analysis," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 15, November.

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