Major market failures over the past year were largely caused by a combination of excessive risk-taking by market participants, a lack of effective government oversight, a lack of jurisdiction over the markets, a lack of transparency, or a combination of these factors. In addition, the petroleum price spikes in summer 2008 highlighted concerns about manipulation/excessive speculation affecting energy prices. The American Climate and Energy Security Act (the Waxman-Markey bill) includes provisions to address many of these concerns. In addition, it includes a subtitle to strengthen regulation of other energy commodities.
Author(s): Jonas Monast
Published: August 2009