Transition to clean energy shaped by political institutions

A country's ability to transition to green energy is dependent on the structure of its political institutions, according to new research involving UCL. Published in the journal Science , the study explores why advanced industrialised countries took divergent paths in their responses to both the current energy price shock and to the oil crisis of the 1970s. In doing so, the authors identify the political factors that allow some countries to take the lead in adopting new sources of energy while others lag behind, finding that the structure of political institutions can either help or hinder energy reforms. international team of researchers from the UK, the US, Canada, and the Netherlands found that governments can pursue energy transitions through one of three pathways: - insulation (where policymakers are shielded from political opposition), compensation (where policymakers ease the burden of adjustment for business and consumers) or markets (where policymakers step back and let the markets drive change). The first two pathways enable a policy-driven approach that hastens transitions by helping governments overcome opposition to costly reforms. When neither of these paths are available, governments retreat and let markets determine the pace of change. The authors found that a country's political institutions are a key determinant of the route they take.