Estimation of Several Political Action Effects of Energy Prices

TL;DR

This paper examines how energy price shocks in the US influence political attention and policy interventions, using Granger causality tests to analyze legislative agenda changes.

Contribution

It introduces a method to link energy price shocks with political responses, highlighting the role of market changes in shaping policy agendas.

Findings

Price shocks increase political attention to energy markets.

Legislative agenda changes are Granger-caused by energy price fluctuations.

Energy market performance influences government interventions.

Abstract

One important effect of price shocks in the United States has been increased political attention paid to the structure and performance of oil and natural gas markets, along with some governmental support for energy conservation. This paper describes how price changes helped lead the emergence of a political agenda accompanied by several interventions, as revealed through Granger causality tests on change in the legislative agenda.