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Long-term Energy Policy vs. Dynamic Public Preferences? A Review of German Energy Policy

Abstract:
During the energy crisis peaking in 2022, numerous countries have implemented short-term and immediate policy measures to reinforce security of energy supply and lower energy prices, often at the expense of environmental compatibility. This can be considered a sudden shift in the relative prioritization among these three energy policy goals. However, the sudden political rearrangement of energy policy priorities during the energy crisis in 2022 is only one illustration of a rapid shift. Historically, abrupt changes in public opinion have also prompted short-term adjustments in energy policy. This paper focuses on the dynamic relationship between public opinion and energy policy using the case of Germany. Specifically, we examine the relationship between changing public preferences and energy policy reaction regarding three significant events: the phase-out of nuclear energy, the phase-out of coal-fired power and heat generation, and the recent energy crisis in 2022. Our paper aims to assess the extent to which short-term shifts in public preferences can be aligned with efficient long-term planning of the energy system and identify the potential challenges that may arise during the process.

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Keywords: Energy Policy, Public Preferences, Energy Crisis, Coal Phase-Out, Nuclear Phase-Out, Germany

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Published in Volume 45, Special Issue of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.

 

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