Others Publications

Stable policies, turbulent markets - Germany’s green industrial policy: the costs and benefits of promoting solar PV and wind energy

Lütkenhorst, Wilfried / Anna Pegels
External Publications (2014)

IISD (Research Report)

In this report, we address the fiercely debated challenge of Germany’s energy transition (Energiewende) and review the policy measures taken in support of increasing the share of renewables in the country’s energy mix. We place special emphasis on solar photovoltaic (PV) and wind energy, analyze the evolution of both sectors in Germany, assess the costs and benefits associated with support policies and draw some conclusions and lessons concerning the need to reform the feed-in tariff approach and to consider the broader issues of green industrial policy. We find mixed evidence that Germany reaches its green industrial policy aims at reasonable costs.
Wind energy seems to perform better against all policy objectives, while the solar PV sector has come under intense pressure from international competition. However, this is only a snapshot of current performance, and a dynamic and systemic perspective may nonetheless make the support of various renewable energy sources advisable.

About the author

Further experts

Aleksandrova, Mariya

Climate risk governance 

Altenburg, Tilman

Economic Geography 

Asimeng, Emmanuel Theodore

Urban Planning, Sustainability 

Banerjee, Aparajita

Environmental and Resource Sociology, Public Policy 

Brandi, Clara

Economy and Political Science 

Dippel, Beatrice

Comparatist 

Donnelly, Aiveen

Politcal Science 

Ekoh, Susan S.

Environmental Research 

Goedeking, Nicholas

Comparative Political Economy 

Lehmann, Ina

Political Science 

Loewe, Markus

Economy 

Mathis, Okka Lou

Political Scientist 

Never, Babette

Political Scientist 

Sowa, Alina

Economics 

Srigiri, Srinivasa Reddy

Agricultural Economist 

Vogel, Tim

Economy 

Wende, Paulina

Political Science 

Zintl, Tina

Political Scientist 

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