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Green Capitalism Made in Germany

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Energy Democracy

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Abstract

The German reading of Adam Smith differs from the mainstream interpretation of his work in the English-speaking world, and that different reading opens up a few policy options. German policy aims to tap the entrepreneurial spirit of capitalism—but also directs markets in a desirable direction. German economic policy for renewables is not laissez-faire or planned economics, but fettered capitalism. Feed-in tariffs are not mistaken for generous subsidies, but floor prices that increase competition between market players.

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Notes

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    Statement made at a conference in 2015, confirmed in personal correspondence.

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    See the “Infrastrukturplanungsbeschleunigungsgesetz.” Up to then, the legal situation had been somewhat unclear. The government’s position was essentially that it was “natural” for the grid to be expanded when central station power plants are built, but not for small distributed units.

  31. 31.

    Based on conversation with Josef Pesch.

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  72. 72.

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  1. Petite Planète, Freiburg and Berlin, Germany

    Craig Morris

  2. Stuttgart, Germany

    Arne Jungjohann

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Morris, C., Jungjohann, A. (2016). Green Capitalism Made in Germany. In: Energy Democracy. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-31891-2_8

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