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Lessons from Germany’s hard coal mining phase-out: policies and transition from 1950 to 2018

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  • Pao-Yu Oei
  • Hanna Brauers
  • Philipp Herpich

Abstract

German hard coal production ended in 2018, following the termination of subsidies. This paper looks at 60 years of continuous decline of an industry that employed more than 600,000 people, through a case study comparing Germany’s two largest hard coal mining areas (Ruhr area and Saarland). Although predominantly economic drivers underlay the transitions, both provide valuable lessons for upcoming coal phase-outs induced by stricter climate policies, including beyond Germany.The analysis identifies the main qualitative and quantitative characteristics of the two regions. It then discusses policy instruments implemented to guide the transition, including measures for the conservation of coal production, regional economic reorientation, and the easing of the transition’s social impacts. The success of these policies is evaluated using economic, social, and geographical indicators that were developed within three interdisciplinary research projects running from 2016 to 2019.A key lesson from the examined case studies is the importance of combining not only policies addressing unemployment and the attraction of new energy corporations and investments, but also measures improving infrastructure, education, research facilities and soft location factors. Protecting a declining industry for decades caused increased transition costs compared to an earlier phase-out. Economic reorientation and changing regional identities have proven most difficult in the past. However, the German example illustrates that the complexity of the challenges of a transition can be mastered if city, regional, and national governments and institutions cooperate in a polycentric approach.Key policy insights A faster and more pro-active hard coal mining phase-out in Germany would have been much less expensive and paved the way for new industriesA just and in-time transition needs to: be jointly managed in a polycentric approach by city, regional, national, and international governments and institutions.combine climate, energy, social, and structural policies, whilst recognizing both local specifics and global connections.consider long-term effects, external independent advice apart from the incumbent regime and beyond-border thinking, while aiming to diversify the economy and enabling broad stakeholder participation.address unemployment, the economy, and the energy system, as well as measures to improve infrastructure, universities, research facilities, and soft location factors.

Suggested Citation

  • Pao-Yu Oei & Hanna Brauers & Philipp Herpich, 2020. "Lessons from Germany’s hard coal mining phase-out: policies and transition from 1950 to 2018," Climate Policy, Taylor & Francis Journals, vol. 20(8), pages 963-979, September.
  • Handle: RePEc:taf:tcpoxx:v:20:y:2020:i:8:p:963-979
    DOI: 10.1080/14693062.2019.1688636
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    Cited by:

    1. Dunja Krause & Dimitris Stevis & Katja Hujo & Edouard Morena, 2022. "Just transitions for a new eco-social contract: analysing the relations between welfare regimes and transition pathways," Transfer: European Review of Labour and Research, , vol. 28(3), pages 367-382, August.
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    5. Kamila Svobodova & John R. Owen & Deanna Kemp & Vítězslav Moudrý & Éléonore Lèbre & Martin Stringer & Benjamin K. Sovacool, 2022. "Decarbonization, population disruption and resource inventories in the global energy transition," Nature Communications, Nature, vol. 13(1), pages 1-16, December.
    6. Colvin, R.M. & Przybyszewski, E., 2022. "Local residents' policy preferences in an energy contested region – The Upper Hunter, Australia," Energy Policy, Elsevier, vol. 162(C).
    7. Arthur Muliro Wapakala & Passy Amayo Ogolla, 2022. "Energy Transitions and Development Ambitions: Divergent Agendas?," Development, Palgrave Macmillan;Society for International Deveopment, vol. 65(1), pages 1-4, March.
    8. Iwona Kantor-Pietraga & Robert Krzysztofik & Maksymilian Solarski, 2023. "Planning Recreation around Water Bodies in Two Hard Coal Post-Mining Areas in Southern Poland," Sustainability, MDPI, vol. 15(13), pages 1-25, July.
    9. Ferguson-Cradler, Gregory, 2022. "Corporate strategy in the Anthropocene: German electricity utilities and the nuclear sudden stop," Ecological Economics, Elsevier, vol. 195(C).
    10. Böhringer, Christoph & Rosendahl, Knut Einar, 2022. "Europe beyond coal – An economic and climate impact assessment," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    11. Jarosław Kaczmarek, 2022. "The Balance of Outlays and Effects of Restructuring Hard Coal Mining Companies in Terms of Energy Policy of Poland PEP 2040," Energies, MDPI, vol. 15(5), pages 1-30, March.
    12. Roxana Voicu-Dorobanțu & Clara Volintiru & Maria-Floriana Popescu & Vlad Nerău & George Ștefan, 2021. "Tackling Complexity of the Just Transition in the EU: Evidence from Romania," Energies, MDPI, vol. 14(5), pages 1-22, March.
    13. Measham, Thomas & Walker, Jim & Haslam McKenzie, Fiona & Kirby, Jason & Williams, Caroline & D'Urso, Jillian & Littleboy, Anna & Samper, Agnes & Rey, Rebecca & Maybee, Bryan & Brereton, David & Boggs,, 2024. "Beyond closure: A literature review and research agenda for post-mining transitions," Resources Policy, Elsevier, vol. 90(C).
    14. Krumm, Alexandra & Süsser, Diana & Blechinger, Philipp, 2022. "Modelling social aspects of the energy transition: What is the current representation of social factors in energy models?," Energy, Elsevier, vol. 239(PA).
    15. Jarosław Kaczmarek & Konrad Kolegowicz & Wojciech Szymla, 2022. "Restructuring of the Coal Mining Industry and the Challenges of Energy Transition in Poland (1990–2020)," Energies, MDPI, vol. 15(10), pages 1-48, May.
    16. Ran An & Tian Sang, 2022. "The Guarantee Mechanism of China’s Environmental Protection Strategy from the Perspective of Global Environmental Governance—Focusing on the Punishment of Environmental Pollution Crime in China," IJERPH, MDPI, vol. 19(22), pages 1-16, November.
    17. Jopp, Tobias A., 2023. "Determinants of mine closures in a declining industry: The example of West German hard-coal mining after World War Two," Economics Letters, Elsevier, vol. 226(C).
    18. Aleksander Frejowski & Jan Bondaruk & Adam Duda, 2021. "Challenges and Opportunities for End-of-Life Coal Mine Sites: Black-to-Green Energy Approach," Energies, MDPI, vol. 14(5), pages 1-18, March.
    19. Gao, Yajuan & Zhang, Congqing & Wang, Yilin & Wang, Shuaihao & Zou, Yunjin & Gao, Junhong & Wang, Zeyu, 2023. "Fiscal decentralization and rural resource utilization efficiency: Evidence from quasi-natural experiment in China," Resources Policy, Elsevier, vol. 87(PB).
    20. Oei, Pao-Yu & Hermann, Hauke & Herpich, Philipp & Holtemöller, Oliver & Lünenbürger, Benjamin & Schult, Christoph, 2020. "Coal phase-out in Germany – Implications and policies for affected regions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 196.
    21. Marina Blohm, 2021. "An Enabling Framework to Support the Sustainable Energy Transition at the National Level," Sustainability, MDPI, vol. 13(7), pages 1-20, March.
    22. Aristizabal-H, Gustavo & Goerke-Mallet, Peter & Kretschmann, Jürgen & Restrepo-Baena, Oscar Jaime, 2023. "Sustainability of coal mining. Is Germany a post-mining model for Colombia?," Resources Policy, Elsevier, vol. 81(C).
    23. Jan-Philipp Sasse & Evelina Trutnevyte, 2023. "A low-carbon electricity sector in Europe risks sustaining regional inequalities in benefits and vulnerabilities," Nature Communications, Nature, vol. 14(1), pages 1-15, December.

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