Varieties of capitalism and clean energy transitions in the European Union: When renewable energy hits different economic logics

Abstract

Renewable energy sources are central to building low-carbon energy systems but there is little secured knowledge about the structural factors that shape national renewable energy policies and energy transition pathways. Drawing on the literature on 'varieties of capitalism' , this article offers an in-depth account of the evolution and impact of renewable energy policies in two countries that are commonly labelled in the literature as two opposite forms of capitalism: 'coordinative market economy' (CME) in Germany and 'liberal market economy' (LME) in the UK. Based on recent political economy literature, this dual perspective is complemented by including a third subtype, 'dependent market economies' (DMEs), which are found in the transition states of central and eastern Europe. The analysis reveals an initial convergence of the three varieties of capitalism towards stronger government involvement and CME-style targeted policy measures. The effectiveness and scope of these measures, however, continues to be constrained by the political economic settings. More recently, centralization and market-based renewable energy governance has gained the upper hand at both national and EU-level. The article concludes with emphasizing the risks of national and EU climate and energy policies driven by short-termism and cost-effectiveness for both renewable energy and climate change goals in the long-run. Policy relevanceThe article has policy implications for EU and national policy makers and stakeholders concerned with renewable energy and climate change governance. It underlines the need for comprehensive renewable energy policies targeting domestic market creation and industrial development as well as civic participation. Domestic and external constraints that different varieties of capitalism within the EU face in advancing these three components of renewable energy development are emphasized. The article stresses the need for enhanced coordination and balanced development of renewable energy sectors across all EU economies as essential for achieving climate change goals and a genuine low-carbon energy transition.

Community acceptability and the energy transition: a citizens’ perspective

“…We seek to move beyond the energy consumer paradigm and its appropriation of energy citizenship within overt, largely unchallenged economic frames of reference. This blurring of the two concepts has been deeply problematic and, while subject to prevailing economic logic [44], has resulted in mixed success for those policymakers tasked with developing viable, sustainable energy transition pathways for Europe's citizens. Scholars have called for more nuanced approaches that move beyond current notions of public support for the energy transition (usually framed as 'public acceptance' and typified by an accept/reject dichotomy) in order to better understand the diverse spectrum of expression, engagement, and participation that inform citizens' attitudes to energy [45].…”

Integrating techno-economic, socio-technical and political perspectives on national energy transitions: A meta-theoretical framework

“…For instance, Geels et al [3] refer to different varieties of capitalism in the UK and Germany to explain differences in energy transitions in these two countries. Ćet-ković & Buzogány [127] analyse the implications of varieties of capitalism for renewable energy policies in the new EU member states. Lachapelle and Paterson [128] and Mikler and Harrison [129] investigate how varieties of capitalism affect climate and energy policies.…”

Co-production in distributed generation: renewable energy and creating space for fitting infrastructure within landscapes

“…Unfortunately, the current trends in power supply development still reflect the carbon lock-in. Europe is witnessing a movement towards large-scale CGRS, increased ownership by multinational companies (Szarka, 2007), and market-based centralisation in RES governance (Ćetković & Buzogány, 2016). The neoliberal approach of using auctions for issuing permits for wind farms is one indicator and trigger (Del Río & Linares, 2014), and it is already slowing down cooperatives in establishing DGRS in Germany, despite their success during the last two decades (Mignon & Rüdinger, 2016, p. 486).…”

“…Neo-liberal frames that set market conditions and uniform standards as the main governance regime are slowing down RES implementation in many countries, particularly in those that favour centralised policies and large-scale projects (Ćetković & Buzogány, 2016;Szarka, 2007). Indeed, lack of meaningful engagement and neglect of landscape values are the direct result of the neo-liberal approach to RES policy (Del Río & Linares, 2014;Fast et al, 2016).…”