Letter: The lessons of Jimmy Carter's energy transition policies
- Climate managers are looking back to the stagflation-era 1970s for energy policy inspiration.
- Experts argue that high interest rates and inflation shouldn't stop massive government intervention in energy markets.
- The push suggests that policy mandates and taxpayer-funded research are better drivers than market reality.
- Geopolitical instability is being used to justify a return to aggressive, state-led energy restructuring.
Brief Summary
A climate change manager from a British pension fund is urging policymakers to ignore current economic headwinds—like soaring interest rates and fiscal strain—and instead emulate Jimmy Carter’s 1970s energy policies. The argument posits that if the government was willing to force energy diversification during a decade of stagflation and oil shocks, it should be willing to do the same today despite the high costs.
Why This Matters
This signals a push for more government-led industrial policy that ignores traditional market signals. Expect officials to use 'energy security' as a cover to justify increased spending and regulatory interference in the power sector. You will likely see this translate into higher utility costs and tax-funded subsidies for green initiatives as bureaucrats prioritize long-term ideological goals over the immediate economic stability of your household budget.