The United States and Canada form the largest integrated energy market in the world, and energy trade in 2011 exceeded $100 billion U.S. dollars (Energy Information Agency 2012). This continental market includes petroleum products, natural gas, electricity (including wind, hydro, nuclear, and fossil generation), and others. The bulk of energy in both dollars and volumes is dominated by Canadian exports, though trade goes both ways. For some energy commodities the reverse is true. It is also true that even where trade is not the issue, domestic energy infrastructure and production in each country have other transboundary effects, including pollution and the diminution of amenities. Given this extraordinary integrated energy system, one would expect a robust set of national and regional governance institutions to govern energy trade, infrastructure, and other activities in border areas. This is not the case. Transboundary energy governance in the U.S.United States and Canada is constrained by a number of factors. It is siloed by energy type so that a broader vision is lacking. It is constrained by lack of harmonization and federalism at state and provincial levels. It is hamstrung by a lack of national policy in both countries and political polarization on energy issues, of which the lack of national policies is, in part, a symptom. It is confined due to regionalism, due largely to the enormous border area that exists between the two countries. Finally, it is hindered by a lack of sufficient regulatory processes for energy siting in communities and Iindigenous lands and/or BANANABANANA tendencies in communities (Build Absolutely Nothing Anywhere Near Anything). Governance across borders between Canada and the United States is comparatively stronger and more robust in several other areas. These include oversight of the Great Lakes, cooperation amongst border agencies, trade agreements such as NAFTA, pollution governance, and other areas.
