What makes them believe in the low-carbon energy transition? Exploring corporate perceptions of the credibility of climate policy mixes

Rogge, Karoline S and Dütschke, Elisabeth (2018) What makes them believe in the low-carbon energy transition? Exploring corporate perceptions of the credibility of climate policy mixes. Environmental Science & Policy, 87. pp. 74-84. ISSN 1462-9011

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Abstract

The credibility of climate policy has been identified as paramount factor for low-carbon investment and innovation and is thus key to achieving the decarbonization objectives set out in the Paris Agreement. Yet, despite its importance, we have only limited insights at present into how such policy credibility is formed. To address this gap, we explore whether and to what extent corporate perceptions of policy credibility depend on the current policy mix. We draw on the case of the German Energiewende and rely on data collected in 2014 in a survey of German manufacturers of renewable power generation technologies. We analyzed the answers of 390 companies using a linear regression model and found that corporate perceptions of policy credibility are mainly shaped by two characteristics of the policy mix: the coherence of policymaking and implementa-tion, and the consistency of the policy mix. Changes in the design of the core demand-pull instrument (in Germany, the Renewable Energy Sources Act, EEG) and the nucle-ar phase-out policy are also important as are Germany’s targets for the expansion of renewable energies. These insights enable us to derive broader policy and research implications concerning climate policy credibility.

Item Type: Article
Keywords: policy mix, credibility, consistency, coherence, comprehensiveness, energy transition
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences > GE170 Environmental policy
J Political Science > JN Political institutions (Europe) > JN3201 Germany
T Technology > T Technology (General) > T0173.2 Technological change
Depositing User: Karoline Rogge
Date Deposited: 07 Jun 2018 09:07
Last Modified: 07 Jun 2018 09:07
URI: http://srodev.sussex.ac.uk/id/eprint/76375

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Project NameSussex Project NumberFunderFunder Ref
Research Centre on Innovation and Energy DemandG1020RCUK-RESEARCH COUNCILS UKEP/K011790/1
Smart Energy TransitionUnsetStrategic Research Council at the Academy of Finland293405