Social Market Economy and Sustainability: Focusing on German Energy Transition Policy

Abstract

German energy transition policy has developed on the basis of social market economy with acceptance of sustainable development ideology in which economy and society and environment are harmonized. In order to discuss the sustainability of the social market economy, this paper examines the idea and foundation of the social market economy from the perspective of a sustainable paradigm, and the value of the social market economy, which considers economic, social, and environmental factors as equal values at the same time. and how the principles were implemented in energy transition policy in Germany. To this end, this paper first tries to shed light on whether the social market economy is sustainable and justice, and the social market economy from the perspective of sustainable development paradigm. Furthermore, energy transition from unsustainable energy system with fossil energy and nuclear energy to sustainable energy system with renewable energy and the ecologization of the social market economy will be discussed as part of harmonizing environment, economic growth, and social justice. Also this paper will examine whether the social market economy provides a sustainable paradigm, focusing on the background and current status of German energy transition policy. Through this, this paper will attempt to evaluate and forecast the sustainability of the social market economy, whether it can be an alternative model for coping with climate change and solving environmental and ecological problems.