Choosing Who to Foot the Bill: Distributional Politics of Green Energy Transition in Germany and the UK

31 March 2025, Version 1
This content is an early or alternative research output and has not been peer-reviewed at the time of posting.

Abstract

Green energy transition is inherently a distributional phenomenon. The government can shape how costs and benefits of this transition are allocated among society and the market in a variety of ways. I refer to these interventions as distributive strategies, which include economization, redistribution, and compensation. Variations in these strategies can have significant distributional implications. For instance, in Germany, the transition disproportionately benefitted renewable energy producers in comparison to the UK due to insufficient economization. Additionally, excessive redistribution in Germany led to an imbalance in burden-sharing, favoring industry at the expense of other renewable energy consumers like households. Finally, Germany’s comprehensive compensation schemes spread the costs of transition more broadly than in the UK. Why are the costs and benefits distributed disproportionately in one country but not in another? What compromises its fairness? And what determines the use of strategies that dictate distributional outcomes? This research seeks to answer these questions.

Keywords

Green energy transition
distributional politics
public policy
energy policy
renewables
comparative political economy
Germany
United Kingdom

Supplementary materials

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Appendices
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Appendices about supplementary illustrations, list of interviewees and Bayesian analysis
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