Book reviews in terms of population, GNP and dependence on imported oil and then draws contrasts between their oil policies before and during the discontinuities of 1973174. It had been envisaged by many energy analysts that in the imminent energy crisis (which was by no means as unpredictable as the collapse of the Bridge of San Luis Rey in 17 14 -a colourful but misleading analogy which Menderhausen uses as a structural framework), France was likely to be archetypical of a dirigiste or 'political competitive' response, while Germany would rely on 'economic-adaptive' market forces. The speed and nature of their responses to the challenge when it came a challenge in terms of the impact both of embargoes and increased prices -are developed in a broader context of the international scene and the different national positions on inflation, currency reserves and political philosophies. Neither state succeeded in insulating itself from events and their actions became less divergent with time, although they are not yet convergent in terms of EEC or IEA energy policies.
Amidst a rising tide of books on oil and energy, this study is distinguished by its brevity and clarity. It is terse without being overly simplistic. Brevity is however overdone -the key chapter on Responses is only 33 pages and there is scope for much more detail on the nature, motivation and initial results of the very numerous and quite sophisticated regulations introduced by the French authorities.
For instance, the use of compulsory energy audits and voluntary fiscal incentives to influence behaviour and the future structure of the market have potential lessons for others.
Too much of the data consists of 'pre-crisis' 1973 figures and, in the case of company shares in the oil market, is contentious.
It is difficult to escape the impression that much of the book was written in late 1974 (the latest of the excessive number of footnote cross-references relates to May 1975), which is unsatisfactory in a book on a topical subject not published until 1976.
It is to be hoped that Resources for the Future will sponsor Menderhausen to take another leave of absence from the Rand Corporation to provide a more detailed and dynamic evaluation of evolving responses. The snapshots provided by this case study can then be converted to a modern movie.
Meanwhile this is an inexpensive, crisp and informative analysis that will appeal to busy students and civil servants with not only textbook summaries to each section but even a summary of summaries, all within 110 pages.
G. R. Jillings