The Political Economy of German and Korean Sustainability Transitions

Germany and the Republic of Korea (hereafter referred to as Korea) have ambitious goals for a green transformation but follow distinct paths that both have their strengths and weaknesses. Germany is more advanced in emission reduction, energy efficiency and environmental conscious behaviour, while Korea leads in investment in green infrastructure and industries. These distinct traits can be explained by path-dependent political economies. In Germany this created a market-oriented approach that adds an ecological dimension to the German “social market economy”. Korea, on the other hand, follows the path of its “developmental state”, which sees the ecological transformation as an opportunity to achieve industrial development and export leadership in green industries. Both strategies offer important insights for mutual learning as well as lessons for developed and developing countries alike.