Institutional Constellations and Policy Instruments for Offshore Wind Power Around the North Sea

25 Pages Posted: 20 Jun 2022

See all articles by Gerrit Rentier

Gerrit Rentier

Utrecht University - Copernicus Institute for Sustainable Development

Herman Lelieveldt

University College Roosevelt/Utrecht University

Gert Jan Kramer

Utrecht University

Abstract

This paper analyses how institutional constellations and their associated mode of risk allocation were reflected in the choice of policy instruments for the promotion of offshore wind power in Denmark, the United Kingdom, Germany and the Netherlands between 1990 and 2020. New technologies like offshore wind require large capital investments, exposed to a higher-than-average downside risk and an uncertain market upside. Research confirms that investment risk is of key importance in policy instruments ([Polzin et al(2019)], [Egli(2020)], [Dukan&Kitzing(2021)]) but it doesn’t address whether the national choice of policy instruments and risk sharing patterns between government and project developers is random or if this choice is guided by certain existing national socio-economic institutions. The qualitative analysis in this paper confirms the existence of matching patterns as history shows that the deployment of offshore wind over time across the four nations is significantly influenced by nations’ institutional constellation. We suggest that the results are not merely of historic interest regarding offshore wind power, but have generic relevance and can therefore also be used to inform future national strategies and policies for deploying new low-carbon technologies, such as electrolysis for green hydrogen, which face similar risks and challenges.

Keywords: Institutions, climate and energy policy, policy instruments, energy transition, offshore wind power

Suggested Citation

Rentier, Gerrit and Lelieveldt, Herman and Kramer, Gert Jan, Institutional Constellations and Policy Instruments for Offshore Wind Power Around the North Sea. Available at SSRN: https://ssrn.com/abstract=4141421 or http://dx.doi.org/10.2139/ssrn.4141421

Gerrit Rentier (Contact Author)

Utrecht University - Copernicus Institute for Sustainable Development ( email )

Heidelberglaan 2
3508 TC Utrecht
Netherlands

HOME PAGE: http://www.uu.nl/staff/GMRentier/Profile

Herman Lelieveldt

University College Roosevelt/Utrecht University ( email )

P.O. Box 94
NL-4330 AB Middelburg
Middelburg, 4330 AB
Netherlands
+31118655519 (Phone)

HOME PAGE: http://https://www.ucr.nl/academics/academic-program/faculty/academic-staff/dr-herman-lelieveldt/

Gert Jan Kramer

Utrecht University ( email )

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