Cooperatives vs. other utilities: Sustainability of electricity provision in a historical perspective

In the paper, the author addresses the question if cooperative electricity providers are more sustainable than utilities in other organizational forms through a comparison of the historical development of three cooperatives... [ view full abstract ]

In the paper, the author addresses the question if cooperative electricity providers are more sustainable than utilities in other organizational forms through a comparison of the historical development of three cooperatives with other utilities in the respective regions. A qualitative approach is used to explore potential social mechanisms which may link organizational form and sustainability. The historical perspective allows to differentiate between phases of technology and sector development.

Various authors have suggested that cooperatives are a useful legal structure and organizational form for collective investments in renewable energies (e.g. Yildiz et al., 2015), that they may lead to more social acceptance (e.g. Warren & McFadyen, 2010) and facilitate the adoption of renewables (Viardot, 2013), or even that cooperatives are organizations of social innovation and sustainable development (Elsen, 2012). On the other hand, already a quick look at shares of renewable energies within the cooperatives' portfolios and the reliance on coal with, at the same time, widespread solar initiatives shows that the picture is somewhat mixed for US rural electricity cooperatives, for instance.

Building on a general history of German electricity cooperatives (Holstenkamp, 2017) and three German case studies, I trace the role of cooperatives in the transformation of the energy sector towards more sustainable generation. The comparative analysis shows that specific cooperative characteristics and values have eased the early adoption of renewables, even if leadership seems to play an evenly important role and the cooperatives under investigation were no first movers and similar characteristics may be found e.g. in small municipal utilities. This is interpreted as an indication of isomorphism (DiMaggio & Powell, 1983).

References:

Elsen, S. (2012). Genossenschaften als Organisationen der sozialen Innovation und nachhaltigen Entwicklung. In G. Beck & C. Kropp (Eds.), Gesellschaft innovativ. Wer sind die Akteure? (pp. 85–102). Wiesbaden: VS Verlag für Sozialwissenschaften.

DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160.

Holstenkamp, L. (2017). Die Geschichte der Elektrizitätsgenossenschaften in Deutschland. In L. Holstenkamp & J. Radtke (Eds.), Handbuch Energiewende und Partizipation (in prep.). Wiesbaden: Springer VS.

Viardot, E. (2013). The role of cooperatives in overcoming the barriers to adoption of renewable energy. Energy Policy, 63, 756-764.

Warren, C. R., & McFadyen, M. (2010). Does community ownership affect public attitudes to wind energy? A case study from south-west Scotland. Land use policy, 27(2), 204-213.

Yildiz, Ö., Rommel, J., Debor, S., Holstenkamp, L., Mey, F., Müller, J. R., . . . Rognli, J. (2015). Renewable energy cooperatives as gatekeepers or facilitators? Recent developments in Germany and a multidisciplinary research agenda. Energy Research & Social Science, 6, 59–73.