The German energy transition repeatedly faces harsh critiques questioning its economic and environmental merits. This article defends the energy transition and argues that Germany has chosen an economically efficient and particularly forceful approach to securing a sustainable energy supply. Though current expenditures are high, the long-term benefits of transforming the energy system to a renewables-based system are likely to outweigh present investment costs. Furthermore, support policies for renewables are not redundant-as some critics claim-but instead complement other policy instruments, such as the emissions trading scheme. This article also addresses the motives behind the discrediting attacks on the German energy policy regime. Defensive actions by beneficiaries of the former energy market structure are only to be expected, but the attacks from liberal economists are astonishingly fierce.
The policy regime and shift of emissions trading scheme by Australian Labor Party and Emissions Reduction Fund by the coalition in Australia year 2013-2018
