Stable Policies Turbulent Markets. Germany's Green Industrial Policy: The Costs and Benefits of Promoting Solar PV and Wind Energy

Lütkenhorst, Wilfried; Pegels, Anna

doi:10.2139/ssrn.2396803

Cited by 17 publications

(10 citation statements)

References 19 publications

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“…Such an approach may also reduce barriers to accelerated energy disruption, for example, by engaging trade unions and trade associations into a thorough discussion on the redirection of employment. Often trade unions resist transitions away from fossil fuels due to the issue of potential job losses associated with disruption (Lütkenhorst and Pegels, 2014).…”

Section: How Does Green Industrial Policy Link To Energy Disruption?mentioning

confidence: 99%

Multiple dimensions of disruption, energy transitions and industrial policy

Johnstone

Kivimaa

2018

Energy Research & Social Science

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In this perspective article, we critically explore 'disruption' in relation to sustainability transitions in the energy sector. Recognising significant ambiguity associated with the term, we seek to answer the question: What use has 'disruption' for understanding and promoting change towards low carbon energy futures. First, we outline that different understandings and dimensions of 'system disruption' exist with different linkages to institutional and policy change. This variety points out a need to research in more detail the particular effects of differing low-carbon innovations in terms of their disruptive consequences for whole socio-technical systems. Thus, disruption can be utilised as a useful conceptual tool for interrogating in more detail the ways in which energy systems are changing in particular contexts. Second, we reflect on the relationship between 'green industrial policy' and disruption. In some contexts 'energy disruption' has been facilitated by green industrial policy, and it would seem that the profound changes said to be on the horizon in terms of disruption are also a motivator of green industrial policy. New industrial policy can be an important way in which the negative consequences of disruptive change, such as job losses, can be managed and facilitated. 1. The 'Disruption' of everything: just another buzzword? Discussions of 'disruption' have gained increasing traction in policy (European Commission, 2014; Innovate UK, 2017) and academia (e.g Nagy et al., 2015; Sioshani, 2017) alike. The term 'disruptive technology' was initially coined in 1995 (Bower and Christensen, 1995; Christensen and Rosenbloom, 1995) and mainly used in the subsequent years to discuss the renewal of firms in the context of business and organisational studies. However, recently the term has become more prolific than ever, spurred on by apparent momentous changes in a range of sectors. These often interconnected developments include automation in transport, 3D printing, digitalisation, the 'gig economy' and 'smart' energy. Definitions have been used further afield to discuss changes in education and health care (Horn and Staker, 2015; Hwang and Christensen, 2008). In an important online article for the New Yorker, Lepore (2014) cynically observed that today "everyone is either disrupting or being disrupted" and argued that "every era has a theory of rising and falling, of growth and decay…our era has disruption". The ubiquity of the term is seen by many as being problematic, with suggestions that the theory of disruption may be "dead wrong" (Kitroeff, 2015) due to its vagueness and lack of definitional clarity, and that it is time to "retire" disruption, "Silicon valley's emptiest buzzword" (Alexander, 2016). King and Baatartogtokh, (2015) inquire 'how useful is a theory of disruption'?

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Section: How Does Green Industrial Policy Link To Energy Disruption?mentioning

confidence: 99%

Multiple dimensions of disruption, energy transitions and industrial policy

Johnstone

Kivimaa

2018

Energy Research & Social Science

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“…Sixth Federal Energy Research Programme contributes to achieving national energy and climate targets, enhance the leading position of German companies and widen technological options [109].…”

Section: Germanymentioning

confidence: 99%

“…On the manufacturing end the Joint Task and Investment Allowance programs; provide manufacturers with financial incentives to manufacture domestically -both through cash grants to locate manufacturing in different parts of Germany (GTAI, 2013a). Table 35 below details some of Germany's policies to support their local Solar PV industry: [108], [109] Indian States We consider a scenario where there is an actual difference in productivity of firms in good 2 in the south to other products relative to the North, dropping the assumption that 1 1,2 , . For example, if specializing in good 2 is likely to attract higher skilled workers or better technology such that; .…”

Section: Policy Relevance and Conclusionmentioning

confidence: 99%

Let There Be Light: Green Industrial Policy and Energy Access in India

Oluwatola¹

2017

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“…All interviewees, across businesses, government and academia, strongly affirm that without the EEG and the feed-in-tariff the German wind energy industry would not have grown as substantially as it did and Germany would not have become Europe's largest wind energy market. Even though the Energiewende and promoting wind energy is high on the agenda of the German government, there is concern that the current feed-in-tariff incentives are too generous and that electricity prices have recently become too expensive (Lütkenhorst and Pegels, 2014).…”

Section: The Renewable Energy Law and The Feed-in-tariffmentioning

confidence: 99%

The stuttering energy transition in Germany: Wind energy policy and feed-in tariff lock-in

Nordensvärd

Urban

2015

Energy Policy

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This article aims to examine whether the formulation of specific low carbon policy such as the feed-in tariff for wind energy in Germany can partly be a barrier to a comprehensive energy transition (Energiewende). Despite their short and medium-term success, these policies could create a long-term lock-in if they are formulated in a way that leads to a stagnation of systems innovation. The research finds that while the share of wind energy has increased rapidly over time, the feed-in-tariff and other low carbon policies and incentives have not been sufficient to achieve a socio-technical regime transition in Germany yet. We suggest that the German feed-in-tariff has incorporated wind energy (a nicheinnovation) and wind energy actors (pathway newcomers) into a slightly modified sociotechnical regime that is rather similar to the earlier 'fossil fuel dominant' socio-technical regime.

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Stable Policies Turbulent Markets. Germany's Green Industrial Policy: The Costs and Benefits of Promoting Solar PV and Wind Energy

Cited by 17 publications

References 19 publications

Multiple dimensions of disruption, energy transitions and industrial policy

Multiple dimensions of disruption, energy transitions and industrial policy

Let There Be Light: Green Industrial Policy and Energy Access in India

The stuttering energy transition in Germany: Wind energy policy and feed-in tariff lock-in

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