Governing renewables: Policy feedback in a global energy transition

Abstract

Complex global problems such as climate change have not been met with deep international cooperation but with complex systems of governance across multiple scales. This includes the global governance of renewable energy, the fastest growing source of electric power globally. How did the complex system of governance for renewable energy emerge, evolve, and institutionalize? This article posits that policy feedback on market actors helps to explain the evolution of renewable energy governance. The extent to which policy expands or limits market opportunities for firms shapes significantly the coalitions that emerge in support of new institutions, such as policies and organizations, in global renewable energy governance. This article examines the role of policy feedback for three major periods of renewable energy governance, focusing on a case for each period: (1) the emergence and expansion of domestic policy in Germany’s feed-in tariff, (2) international cooperation in the creation of the International Renewable Energy Agency, and (3) international competition in the European Union-China solar trade dispute. The findings contribute to our understanding of complex interdependence in a policy-driven global energy transition, complementing analyses of domestic energy transitions. They also suggest that policymakers can—to some extent—strategically leverage feedback dynamics to promote market transformations in the absence of comprehensive international cooperation.