From Efficiency to Equity: Regulatory Impact Assessment and Governance Lessons from Germany’s Energiewende

Abstract

Regulatory Impact Assessment (RIA) has become a standard tool for evaluating policy reforms, yet it often remains narrowly focused on cost–benefit efficiency while neglecting distributive justice, governance dynamics, and legitimacy. This paper addresses that gap by examining RIA practices in Germany’s Energiewende, one of the world’s most ambitious energy transitions. Using a qualitative research design and systematic document analysis, the study applies the Triple-E Institutional Reform Framework (TEIRF), which integrates efficiency, equity, and environmental sustainability with governance as the mediating foundation. The findings show that Germany’s strong institutions sustained efficiency and sustainability outcomes through robust investment mobilization and ecological ambition, but distributive inequities and spatial justice challenges undermined legitimacy. Comparative references to Spain, the United Kingdom, and Belgium reinforce these insights: fiscal fragility, narrow efficiency scoring, or procedural consultation alone are insufficient to reconcile contested trade-offs. Theoretically, the study advances RIA beyond its technocratic origins by positioning it as a governance process that structures negotiation, sequencing, and legitimacy. Policy-wise, TEIRF provides a diagnostic tool adaptable across contexts: for high-capacity systems, it highlights the need to anticipate distributive tensions, while for low- and middle-income countries it underscores the importance of sequencing reforms according to institutional readiness.