Energy: is it a commodity?

"Conclusion: energy is a commodity but the decision-making process is not!"

Rafael, in terms of basic economics, no consumer pays money for the "decision-making process". It's up to producers to find the most efficient, cost-effective way to produce and market their product so they can be competitive - to provide the most value for the least money.

When  we use the term "market" we generally imply a free market, where sellers can compete with other sellers. But due to its nature, there's a fundamental difference between selling energy and other commodities, like corn, or sunflower oil, or cane sugar. Vendors of electricity are monopolies - they have no competition. So strictly speaking an energy "market" does not exist.

One could argue a truly free market doesn't exist for any commodity. Even in an open-air farmer's market, if one flower vendor is the cousin of the market organizer, sh/he will likely be awarded a choice location, or be mentioned in advertising, etc. But in general, consumers get the best value for their money when these anti-competitive practices are limited. And though there does exist a buying-selling paradigm for wholesale electricity in the U.S., it's rife with anti-competitive practices and special interest market distortions. A free market in electricity most certainly does not exist.

Because the value of clean electricity isn't immediately apparent, many consumers don't appreciate it. In those situations we're forced to rely on lawmakers to enact regulation to ensure society gets the most value for its money, too. But we should never expect consumers to accept this burden on their own accord. A free market, by definition, rewards self-interest. If we expect consumers to appreciate the true value of carbon-free electricity for fighting climate change, we're setting ourselves up for failure.