Environmental Engineering Reference
In-Depth Information
4.6.3 Fiscal Health
Denmark is one of the most socially progressive nations in the world. As
the Ministry of Social Afairs and Integration sums up, “the Danish wel-
fare model is based on the principle that all citizens shall be guaranteed
certain fundamental rights in case they encounter social problems such as
unemployment, sickness or dependency.”
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his commitment to universal
welfare has produced one of the most economically equitable nations in the
world, as measured by the Gini coeicient.
Since the 1970s there has been an ever-increasing demand for enhanced
social services to support the evolving needs of Denmark's baby boom-
ers. With the exception of a four year period between 1986 and 1989,
Denmark's government posted iscal deicits every year between 1970 and
1997. Progressive iscal deicits of this type engender political conditions
wherein all new policies become thoroughly vetted and compared to com-
peting funding requests. herefore, given the breadth of demand for social
welfare services in Denmark, direct subsidization of wind power through
iscal budgeting has not been the norm.
4.6.4 Policy Regime
Given government iscal constraints between 1970 and 2000, government
support for wind power difusion has largely centered on strategic planning
and regulatory support. he only substantial subsidy that the government
provided directly from the iscal budget was support for R&D. Over the irst
three decades of the program, public support for R&D averaged about 4%
of total global public funding spent on wind energy R&D.
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he rationale
behind this bold R&D commitment was that government saw wind system
manufacturing as a technological sector that meshed with Denmark's aspi-
rations to nurture knowledge-based technological industries. Government
support was as much of an investment designed to nurture internationally
competitive wind power manufacturers as an investment in wind power dif-
fusion in Denmark.
In terms of domestic wind power development, the role of the govern-
ment was more facilitative than catalytic. It coordinated research, mandated
regional and municipal development plans, commissioned the development
of wind power potential studies, and established the framework necessary
to encourage community investment in wind power projects.
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he inances necessary for facilitating development rarely threatened is-
cal health. he investment subsidies that were ofered to individuals and
