Energy R&D: in tepid pursuit of collective goods

Abstract

Continued dependence on expensive imported liquid fuels puts stress on the relations among and the domestic performance of the members of OECD. Coordinated energy R&D could in principle lessen those stresses and also benefit other liquid fuel consumers. A political economy approach can help explain the tepid pursuit of this possibility in two ways. First, it can clarify the reasons for the weak collective action energy R&D record of the members of the OECD both before and after the oil events of 1973. Second, it can demonstrate and identify the nature of the undersupply of the public good of energy knowledge. The history of this area illustrates several general obstacles to the provision of public goods in realistically complex political situations. These include the uncertain and distant nature of commitments to actually deliver collective goods in the absense of self-enforcing agreements, unwillingness to jeopardize possible future private advantages, and the tendencies to link provision of particular public goods to cooperation by other parties with the provider on a host of other matters. In effect, the attempts of particular statesmen to tie energy R&D cooperation to other issues reinforce tendencies to view the choices not as ones about the level of provision of public goods, but rather as ones about national shares of private goods—economic, military, and political.