and unamenable to scrutiny as a whole’ (Hall, 1993, p279). Particular policy para -
digms are in turn often associated with particular institutional systems. For example,
Schmidt (2002) argues that in Britain policy has been dominated by a neoliberal
paradigm, linked to a liberalized market institutional system and a politics deeply
influenced by Thatcherism. By contrast, Germany’s distinctive ‘social market’
paradigm complements a set of more deliberative economic institutions, while
France’s paradigm of dirigisme is a good fit for an institutional system in which the
state plays a prominent role.
Beyond policy design, institutional systems may also influence the articulation
of policies and political effects – i.e. how far positive and negative feedback effects
are likely to arise, and whether these effects are amplified or dampened. Many
policies for green transformation are essentially economic policies, involving taxes,
subsidies and other forms of state or institutional support, so economic institutions
are particularly important. For example, a renewable energy support policy can
offer a subsidy, but how far investment in renewables actually takes place depends
on how far financial institutions complement that policy and provide credit on
acceptable terms. Equally, a country with labour market and welfare systems that
produce high levels of poverty and inequality may find it hard to place the costs
of renewable energy support on energy bills, as this amplifies the political effects
of a negative policy feedback to the point of crisis.
The importance of context for policy feedback effects suggests that differences
in speeds and paths of green transformation in different countries may be related
to institutional diversity across countries. There are many approaches to understanding
such institutional diversity (see e.g. Crouch and Streeck, 1997; Schmidt, 2002;
Morgan et al., 2010), and considerable debate over whether it is possible to classify
countries into particular ‘varieties of capitalism’ (Hall and Soskice, 2001; Crouch,
2005a; Hancké et al., 2007) or the relevance of those models for countries outside
of Europe (Carney et al., 2009; Schneider, 2009). However, common to all these
approaches is the idea that different countries do have distinctive systems of social
and economic institutions that complement one another and which evolve over
time (Crouch, 2005b; Streeck and Thelen, 2005). We can therefore expect such
systems to have significant implications for the speed and path of a green
transformation.
Germany and the UK
Returning to the cases of Germany and the UK, there are several contrasts in
institutions and discourses which may help explain why Germany adopted a policy
that had the potential to create stronger positive feedback effects, and also why
that potential was realized more fully.
5
The Renewables Obligation (RO) was chosen in the UK explicitly as a
mechanism that attempted to mimic a market – i.e. not setting a fixed price – and
avoided an explicit technology-specific focus. It was seen as superior to the
German feed-in tariff specifically for these reasons. This approach was entirely
Political dynamics of green transformations 97
digms are in turn often associated with particular institutional systems. For example,
Schmidt (2002) argues that in Britain policy has been dominated by a neoliberal
paradigm, linked to a liberalized market institutional system and a politics deeply
influenced by Thatcherism. By contrast, Germany’s distinctive ‘social market’
paradigm complements a set of more deliberative economic institutions, while
France’s paradigm of dirigisme is a good fit for an institutional system in which the
state plays a prominent role.
Beyond policy design, institutional systems may also influence the articulation
of policies and political effects – i.e. how far positive and negative feedback effects
are likely to arise, and whether these effects are amplified or dampened. Many
policies for green transformation are essentially economic policies, involving taxes,
subsidies and other forms of state or institutional support, so economic institutions
are particularly important. For example, a renewable energy support policy can
offer a subsidy, but how far investment in renewables actually takes place depends
on how far financial institutions complement that policy and provide credit on
acceptable terms. Equally, a country with labour market and welfare systems that
produce high levels of poverty and inequality may find it hard to place the costs
of renewable energy support on energy bills, as this amplifies the political effects
of a negative policy feedback to the point of crisis.
The importance of context for policy feedback effects suggests that differences
in speeds and paths of green transformation in different countries may be related
to institutional diversity across countries. There are many approaches to understanding
such institutional diversity (see e.g. Crouch and Streeck, 1997; Schmidt, 2002;
Morgan et al., 2010), and considerable debate over whether it is possible to classify
countries into particular ‘varieties of capitalism’ (Hall and Soskice, 2001; Crouch,
2005a; Hancké et al., 2007) or the relevance of those models for countries outside
of Europe (Carney et al., 2009; Schneider, 2009). However, common to all these
approaches is the idea that different countries do have distinctive systems of social
and economic institutions that complement one another and which evolve over
time (Crouch, 2005b; Streeck and Thelen, 2005). We can therefore expect such
systems to have significant implications for the speed and path of a green
transformation.
Germany and the UK
Returning to the cases of Germany and the UK, there are several contrasts in
institutions and discourses which may help explain why Germany adopted a policy
that had the potential to create stronger positive feedback effects, and also why
that potential was realized more fully.
5
The Renewables Obligation (RO) was chosen in the UK explicitly as a
mechanism that attempted to mimic a market – i.e. not setting a fixed price – and
avoided an explicit technology-specific focus. It was seen as superior to the
German feed-in tariff specifically for these reasons. This approach was entirely
Political dynamics of green transformations 97