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This book addresses the interactions between Germany's energy transition and the EU's energy policy framework. It seeks to analyze the manifold connections between the prospects of the proclaimed "Energy Union" and the future of Germany's energy transition, and identifies relevant lessons for the transformation at the EU level that can be learned from the case of Germany, as a first-mover of transforming energy systems towards renewables. The various repercussions (political, economic and systemic) from the national transition are explored within the EU context as it responds to the German transition, taking into account both existing frictions and potential synergies between predominantly national sustainability policies and the EU's push towards harmonized policies within a common market. The book's overall aim is to identify the most critical issues, in order to avoid pitfalls and capitalize on opportunities

The literature on policy convergence has identified numerous aspects and possible causal drivers of convergence. We classify and condense these into a comprehensive framework, which is operationalized for support policies for renewable energy sources in the EU. Our analysis advances the conceptual discussion in two ways. First, we demonstrate that conceptual specifications of convergence (e.g., whether to focus on policy targets, instrument design or policy outcomes) rely on normative assumptions. Second, we argue that theories of economic and political convergence processes complement each other: studies of economic convergence are apolitical as they do not aim to explain why states choose or should choose the same policies to solve a given problem. At the same time, economic convergence yields a necessary condition for successful policy convergence. The empirical evidence, in turn, suggests conditional convergence of support policies and renewables shares in the EU, but does not hint at absolute convergence.

AbstractWind power is a key for decarbonizing economies. Yet, wind turbines can produce negative environmental externalities. These include bird collisions and disamenities for residents. Setback distances for onshore wind turbines to settlements and bird nests are a common policy instrument to address these externalities. In this paper, we evaluate the cost-effectiveness of setback distances. We use a spatially-explicit model to investigate the social costs of different options for setbacks to settlements and red kite nests. In terms of social costs, we consider production costs and external costs associated with residents' disamenities and red kite impacts given an exogenously set wind energy production target. The model is applied using data for the German State of Saxony. Three key results are: (1) More restrictive setbacks may increase social costs. (2) Uniform red kite setbacks reduce social costs rather than uniform settlement setbacks. (3) Differentiated settlement setbacks for different settlement types lead to substantially lower social costs than uniform setbacks.

AbstractThe literature on policy convergence has identified numerous facets and causal drivers of convergence. Distinguishing four dimensions of convergence (object, benchmark, drivers and directed process) helps clarify why and in what form policy convergence may occur (or not). Thus, depending on, for example, the object of analysis (policy outcome or instruments used), the same empirical case may give rise to opposing assessments. Furthermore, both economic and political drivers are necessary to account for successful policy convergence: economic convergence partly explains why countries may face similar problems, and political mechanisms explain why they might choose similar policies to solve a given problem. This article illustrates the multifaceted character of convergence for the dynamic field of renewable energy policies in the European Union. The empirical results indicate temporary convergence in the case of policy support instrument choices and conditional convergence in terms of renewable shares. However, the results suggest divergence of public R&D subsidies targeting renewables.

2020 feiert das Erneuerbare-Energien-Gesetz sein 20-jähriges Jubiläum. Für Pioniere, die schon früh in Windräder, Photovoltaik- und Biomasseanlagen investiert haben, ist dies möglicherweise jedoch kein Grund zum Feiern, denn die gesetzlich garantierte Vergütung der Stromerzeugung läuft dann für die ersten Erneuerbare-Energien-Anlagen aus. Ob Bestandsanlagen ohne staatliche Förderung weiter rentabel sind, ist fraglich. Gingen sie vom Netz, so die Sorge, könnte das Erreichen der Energiewendeziele gefährdet werden. Aber sind diese Befürchtungen berechtigt? Und wenn ja, wie sollte die Politik darauf reagieren? ; In 2020 Germany's Renewable Energy Sources Act celebrates its twentieth anniversary. Pioneers of the German energy transition, who have invested early in wind, photovoltaic and biomass plants, may expect this anniversary with sorrow. This is because it will also imply that public support expires for the first renewable energy installations, after 20 years of guaranteed feed in tariffs. It is unclear whether existing installations can be operated profitably without public support. Concerns are growing that the objectives of Germany's energy transition may be difficult to attain if existing renewable energy plants go offline. Are these concerns justified? And if yes, how should they be addressed by public policy?

AbstractIn this paper, we take a Public Choice perspective to identify and categorise barriers to efficient public climate adaptation. Specifically, we distinguish three dimensions of public adaptation: extent, structure (form and timing) and organisation (coordination across territorial authorities and policy fields). Within each of these dimensions, we investigate how the self-interest of voters, pressure groups, bureaucrats and politicians may bias adaptation decisions. Thus, we indicate specific barriers to efficient public adaptation. Based on this framework, we illustrate how Germany's response to major flood disasters reflects the incentive structure of concerned stakeholders and their political interaction. The ad hoc character of some public adaptation measures implies a clear bias from the efficient benchmark. In conclusion, we argue that the propositions of Public Choice theory shed some light on how empirical public adaptation processes unfold.

In this paper, we propose a comprehensive Public Choice framework to identify and categorize barriers to efficient public climate adaptation. Specifically, we distinguish three dimensions of public adaptation: extent, structure (form and timing) and organisation (vertical and horizontal). Within each of these dimensions, we investigate how the self-interest of voters, pressure groups, bureaucrats and politicians may bias adaptation decisions. Thus, we indicate specific barriers to efficient public adaptation. Based on this framework, we illustrate how Germany's response to major flood disasters reflects the incentive structure of concerned stakeholders and their political interaction. The ad-hoc character of some public adaptation measures implies a clear bias from the efficient benchmark. In conclusion, we argue that the propositions of Public Choice theory shed some light on how empirical public adaptation processes unfold.

The literature on policy convergence has identified numerous aspects and possible causal drivers of convergence. We classify and condense these into a comprehensive framework, which is operationalized for support policies for renewable energy sources in the EU. Our analysis advances the conceptual discussion in two ways. First, we demonstrate that conceptual specifications of convergence (e.g., whether to focus on policy targets, instrument design or policy outcomes) rely on normative assumptions. Second, we argue that theories of economic and political convergence processes complement each other: studies of economic convergence are apolitical as they do not aim to explain why states choose or should choose the same policies to solve a given problem. At the same time, economic convergence yields a necessary condition for successful policy convergence. The empirical evidence, in turn, suggests conditional convergence of support policies and renewables shares in the EU, but does not hint at absolute convergence.

With the expansion of renewable energy sources (RES) in countries all over the world, policy design to address the negative impacts of RES plants on their local and regional environment gains in importance. We analyse whether policy design should be spatially-differentiated or uniform when negative RES environmental externalities are spatially heterogeneous and display interregional cumulative effects. In a theoretical model of the RES electricity generation sector, we compare the welfare differential between both regulatory designs and analyse how it is affected by cumulative environmental effects. While we confirm that the welfare costs of attaining a RES deployment target are lower under a spatially-differentiated than a spatiallyuniform regulation, we find that the welfare costs are contingent on the presence of cumulative environmental effects. This depends on the heterogeneity of region-specific generation cost parameters and social cost parameters of RES electricity generation. If heterogeneity is more (less) pronounced in regional generation cost parameters than in regional social cost parameters, positive (negative) cumulative effects decrease the welfare costs of a uniform instrument.

The deployment of onshore wind power is an important means to mitigate climate change. However, wind turbines also have negative impacts at the local scale, like disamenities to residents living nearby, changes in landscape quality, or conflicts with nature conservation. Our paper analyses how these impacts affect the optimal siting of wind turbines, as compared to a spatial allocation focused solely on minimizing generation costs. To quantify the spatial trade-offs between these criteria, we propose a novel approach using Pareto frontiers and a Gini-like potential trade-off indicator. Our analysis builds on a spatial optimization model using geographical information system data for Germany. We show that spatial trade-offs between the criteria under consideration are significant. The size of the trade-off varies substantially with the criteria under consideration, depending on the spatial heterogeneity of each criterion as well as on the spatial correlation between the criteria. Spatial trade-offs are particularly pronounced between nature conservation (measured by impacts on wind power-sensitive birds) and other criteria.

While there is relatively limited disagreement on the general need for supporting the deployment of renewable energy sources for electricity generation (RES-E), there are diverging views on whether the granted support levels should be technology-neutral or technology-specific. In this paper we question the frequently stressed argument that technology-neutral schemes will promote RES-E deployment cost-effectively. A simple partial equilibrium model of the electricity sector with one representative investor is developed to illustrate how the cost-effective support levels to different RES-E technologies will be influenced when selected market failures are introduced. We address market failures associated with technological development, long-term risk taking, path dependencies as well as various external costs, all of which drive a wedge between the private and the social costs of RES-E deployment. Based on these analytical findings and a review of empirical literature, we conclude that the relevance of these market failures is typically heterogeneous across different RES-E technologies. The paper ends by discussing a number of possible caveats to implementing cost-effective technology-specific support schemes in practice, including the role of various information and political economy constraints. While these considerations involve important challenges, neither of them suggests an unambiguous plea for technology-neutral RES support policies either.

The purpose of this paper is to investigate the impacts of land-use policies on wind power deployment at the regional levels in Germany and Sweden, respectively. We use data on added wind capacity at the German district level and the Swedish municipality level over the time period 2008-2012. These data are analysed with a model specification permitting the probability of having any capacity addition (1/0) during this period to be independent of the level of the installed capacity (in MW). The results confirm that the regional variations in wind power deployment can to a significant extent be attributed to land-use policies, not least in the form of priority areas and the designation of restricted areas. The quantitative results display interesting differences across the two countries, not least concerning the role of priority areas, which is found to be much more profound in the German case. The assignment of protected areas appears instead to have constituted a more stringent policy tool in Sweden. Furthermore, cross-country differences in the relevance of various explanatory variables are also found to be related to geographical patterns, the overall extent of wind power deployment, as well as the design of the support schemes for wind power. Overall, the results highlight the need for better understanding of the critical role of land-use policies for future renewable energy development in various national and institutional contexts.