The political economy of renewable energy policies in Germany and the EU |
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| Affiliation: | 1. Helmholtz Centre for Environmental Research, UFZ, Department of Economics, Permoser Str. 15, 04318 Leipzig, Germany;2. Leipzig University, Institute for Infrastructure and Resources Management, Grimmaische Str. 12, 04109 Leipzig, Germany;1. RWI and Ruhr-University Bochum, Germany;2. RWI, Ruhr-University Bochum, German Council of Economic Experts, Germany;3. CEPR London, United States;4. RWI and Jacobs University Bremen, Germany;1. Institute of Energy Process Engineering and Fuel Technology, Clausthal University of Technology, Agricolastrasse 4, 38 678 Clausthal-Zellerfeld, Germany;2. Institute of Power Engineering, Dresden University of Technology, George-Bähr-Strasse 3b, 01069 Dresden, Germany;1. Mercator Research Institute on Global Commons and Climate Change (MCC), Torgauer Straße 12-15, 10829 Berlin, Germany;2. Technische Universität Berlin, Economics of Climate Change, Straße des 17. Juni 145, 10623 Berlin, Germany;3. Hertie School of Governance, Friedrichstraße 180, 10117 Berlin, Germany;4. Potsdam Institute for Climate Impact Research (PIK), PO Box 60 12 03, 14412 Potsdam, Germany;1. DBFZ Deutsches Biomasseforschungszentrum gGmbH, Torgauer Strasse 116, 04347 Leipzig, Germany;2. Helmholtz Centre for Environmental Research GmbH - UFZ, Permoserstrasse 15, 04318 Leipzig, Germany |
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| Abstract: | In this paper, we employ a public choice perspective to analyze the development of policies for renewable energy sources (RES) in the EU in general and in Germany more specifically. In doing so, we explain the main characteristics of current RES policies by reference to the self-interest driven motivations of voters, stakeholders and political actors. One important puzzle, which we address, is the following: How could effective RES-policies be introduced against the political opposition of fossil-fuel interest groups in the past? Via analyzing the German example in more detail, we show how over time a self-reinforcing interplay of ideological and financial RES support has emerged. Moreover, we argue that observed specific design choices for RES policies in Germany, such as largely riskless remuneration schemes and high degrees of technology differentiation, as well as decentralized decision-making across EU Member States, can be traced back to politicians' need to balance a variety of partly opposing interests. A major benefit of the presented analysis is that it provides a realistic assessment of the challenges for RES policy reform – any reform effort critically depends on its ability to balance stakeholder interests. |
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| Keywords: | Lobbying Public choice Renewable energy sources Subsidies Support policies D 72 D 78 H 25 K 32 Q 42 |
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