ZEW Energy Market Barometer: German Energy Policy Does Not Focus Sufficiently on Economic Efficiency and Security of Supply

According to market experts, German energy policy focuses too strongly on environmental compatibility, while a significantly lower priority is given to other important objectives, such as an energy supply at low costs or security of supply. This is the finding of the current ZEW Energiemarktbarometer (Energy Market Barometer), a survey of the energy industry in Germany, which is conducted by the Centre for European Economic Research (ZEW), Mannheim, and comprises the expectations of more than 200 experts, who are regularly asked for their opinion on energy economic issues.

When asked whether the highest priority of the German energy policy should be given to economic efficiency, environmental compatibility or security of supply, a slight majority (39 per cent) of the experts surveyed by ZEW stated that an economically efficient energy supply should be the primary objective. Around 36 per cent believe that an environmentally compatible energy supply should be the most important target, while 25 per cent think that the highest priority should be given to security of supply.

A very different picture emerges when surveying the experts about the actual emphasis on each of the three aims of the German energy policy. According to a significant majority of 61 per cent the German government’s key objective is an environmentally compatible energy policy. Only around 25 per cent believe that the German government is particularly concerned with a cost-effective energy supply and only 14 per cent believe that security of supply is the most important target.

Furthermore, ZEW asked the experts to assess the European Union’s energy policy. Nearly half of the survey participants (49 per cent) think that environmental compatibility should be the EU’s main objective and 52 per cent believe that this objective is actually pursued most consistently. Only 17 per cent are of the opinion that an economically efficient supply should be the central target of EU energy policy but nearly 35 per cent think that the EU pursues this aim with highest priority. According to around one third (34 per cent) of the experts, security of energy supply should be the priority objective on the European level. Similar to the assessment of the German energy policy, only a minority of 14 per cent think that this aim is actually realised with priority.

Contact

Dr. Ulf Moslener, E-mail: moslener@zew.de