Thesis Sub-Federal Ecological Modernization

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Thesis Sub-Federal Ecological Modernization THESIS SUB-FEDERAL ECOLOGICAL MODERNIZATION: A CASE STUDY OF COLORADO’S NEW ENERGY ECONOMY Submitted by Stratis Giannakouros Department of Political Science In partial fulfillment of the requirements For the Degree of Master of Arts Colorado State University Fort Collins, Colorado Summer 2013 Master’s Committee: Advisor: Dimitris Stevis Sandra Davis Michael Carolan ABSTRACT SUB-FEDERAL ECOLOGICAL MODERNIZATION: A CASE STUDY OF COLORADO’S NEW ENERGY ECONOMY European nations have often employed policies of explicit government intervention as a preferred means of addressing environmental and economic challenges. These policies have ranged from grey industrial policies focused solely on industrial growth, competitiveness and innovation to policies of stronger ecological modernization, which seek to align industrial interests with environmental protection. In recent years these policies have been mobilized to address the threat of climate change and promote environmental innovation. While some US Administrations have similarly recognized the need to address these challenges, the particular historical and political institutional dynamics of the US have meant that explicit government intervention has been eschewed in favor of more indirect strategies when dealing with economic and environmental challenges. This is evident in the rise of sub-federal policies at the level of US states. Supported by federal laboratories and public research, US states have adopted policies that look very much like sub-federal versions of industrial or ecological modernization policy. This thesis uses the Colorado case to highlight the importance of sub-federal institutions in addressing environmental and economic challenges in the US and explore its similarities to, and differences from, European approaches. To achieve this goal it first develops an analytical scheme within which to place policy initiatives on a continuum from grey industrial policy to strong ecological modernization policy by identifying key institutions that are influential in each policy type. This analytical scheme is then applied to the transitional renewable energy policy ii period from 2004-2012 in the state of Colorado. This period starts with the adoption of a renewable energy portfolio in 2004 and includes the ‘new energy economy’ period from 2007- 2010 as well as the years since. Looking at three key turning points this paper interprets the ‘new energy economy’ strategy using the analytical scheme developed and identifies the political and social institutions that frame this transition. Drawing upon these findings, the paper analyses the implications of the Colorado case for understanding sub-federal initiatives in the US and concludes with a summary of the broader comparative institutional lessons. iii ACKNOWLEDGMENTS It has been through the love and support of my parents and siblings that I have accomplished anything in my life. In particular, I would like to acknowledge my mother for being an equanimous and stabilizing force in my life and my father for being my ‘rock of Gibraltar’ and an endless sea of unconditional love. I have found that in life you rarely find people who will invest themselves in your personal development. My advisor Dimitris Stevis is one of these. He has been my guide throughout this process, but he has also been my friend, mentor and confidant. I am eternally grateful for the hours of conversation and advice that not only shaped my thesis, but also profoundly affected my intellectual and personal development. Finally, I would like to thank Rachel Schulte for more than I can write here. iv TABLE OF CONTENTS ABSTRACT .................................................................................................................................... ii ACKNOWLEDGMENTS ............................................................................................................. iv LIST OF TABLES ......................................................................................................................... vi Introduction ..................................................................................................................................... 1 Chapter 1 ......................................................................................................................................... 8 Research Design and Methods ........................................................................................................ 8 Chapter 2 ....................................................................................................................................... 14 Ecological Modernization ............................................................................................................. 14 Chapter 3 ....................................................................................................................................... 37 Industrial Policy ............................................................................................................................ 37 Chapter 4 ....................................................................................................................................... 62 Colorado Energy and Amendment 37 (Origins) ........................................................................... 62 Chapter 5 ....................................................................................................................................... 76 The NEE Period: 2007-2009 ......................................................................................................... 76 Chapter 6 ....................................................................................................................................... 91 ARRA, 30 Percent and the Rise of Natural Gas (2009-2011) ...................................................... 91 Chapter 7 ..................................................................................................................................... 106 Findings and Future Research ..................................................................................................... 106 Bibliography ............................................................................................................................... 115 Appendix A ................................................................................................................................. 125 Interview Guide .......................................................................................................................... 125 LIST OF ABBREVIATIONS ..................................................................................................... 127 v LIST OF TYPOLOGIES Typology 1 .................................................................................................................................... 30 Typology 2……………………………………………………………………………………….56 Typology 3……………………………………………………………………………………...108 vi Introduction “Instead of using their vastly increased material and technical resources to build a wonder city, the men of the nineteenth century built slums...[which] on the test of private enterprise, 'paid,' whereas the wonder city would, they thought, have been an act of foolish extravagance, which would, in the imbecile idiom of the financial fashion, have 'mortgaged the future'... though how the construction to-day of great and glorious works can impoverish the future, no man can see until his mind is beset by false analogies from an irrelevant accountancy…The same rule of self- destructive calculation governs every walk of life. We destroy the beauty of the countryside because the un- appropriated splendors of nature have no economic value. We are capable of shutting off the sun and the stars because they do not pay a dividend... But once we allow ourselves to be disobedient to the test of an accountant's profit, we have begun to change our civilization” John Maynard Keynes (1933, 760-763) Is Colorado’s New Energy Economy an example of ecological modernization American style? In the last decade there has been a strong recognition in the U.S. that industry has an important, proactive role to play in environmental protection. Many scholars and policymakers have argued that this approach closely resembles the arguments made by proponents of ecological modernization (EM) theory. Although ecological modernization theory has grown up in a European context, its American proponents argue that the foundations of this theoretical perspective can travel well across the Atlantic, resulting in what is referred to as “ecological modernization American style”. While differences in political organization and discourse have caused EM to operate at the sub-national rather than the federal level and within a neo-liberal rather than a corporatist paradigm, the core elements of EM theory remain intact in its American form. In 2007 Bill Ritter’s administration is credited with coining the term “New Energy Economy” or NEE. The NEE provided a branding for the ensuing activities related to clean energy pursued by the Ritter administration during its tenure. On its surface, Ritter’s NEE policies seem to be a manifestation of an American Style EM. 1 My thesis will ask: Is Colorado’s New Energy Economy an example of EM American style? If not, what sort of policy framework would best describe this transition? I will answer these questions through a systematic investigation of the way in which policies were formed, starting with an historical look at Colorado’s energy
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