Legal Perspectives and Regulatory Philosophies on Natural Monopolies in the United States and Germany

Abstract:     
The paper, a contribution to an interdisciplinary project bringing together scholars from the fields of history, economics and law from Germany and the United States, addresses the regulatory philosophies that underpin the regulation of the electricity markets in Germany and the United States. It challenges the traditional narrative that characterizes the United States as having a laissez-faire approach to regulation, while Germany (and with it most European countries) operates under a more state-driven model. This description blurs two concepts: liberalization and deregulation.

Starting soon after the invention of electricity in the 19th century, regulatory models emerged in both countries - oftentimes building on previous experience with railroads - that emphasized the public role that the electricity industry plays in modern societies. The paper traces the history of political thought in both countries from the beginning of electricity regulation until today, concluding that the example of network industries shows convergence rather than divergence.

Number of Pages in PDF File: 24

Keywords: comparative law, Germany, U.S., United States, electricity, network industries, natural monopolies

JEL Classification: B10, B20, H10, H40, H41, H54, L12, L13, L33, L41, L42, N10

Accepted Paper Series