Energy Transition in Europe

This comparative study investigates the divergent trajectories of the energy transition in Germany and Spain, and how these trajectories have produced different outcomes in economic performance and social welfare. Although both countries began with substantial investments in renewable energy, Spain currently shows signs of economic growth and improvements in welfare, while Germany faces structural challenges, particularly in the automotive sector.The research is based on comparative analysis which take sources from documents and institutional reports from European and national agencies. The two cases divergence is explained in a theoretical framework that integrates concepts of sustainable modernisation, technological governance, and social distribution of environmental costs which drive to several hypotheses. These last ones suggest that in the two countries factors such as industrial policies, technological incentive mechanisms—particularly the push towards transport electrification and differences in systemic integration capacity (energy networks, flexibility), have acted as mediators between the energy transition and the socio-economic outcomes. Conclusions offer insights for the design of fairer and more resilient energy policies within the European context.1 Received: 29 August 2025 / Accepted: 07 November 2025 / Published: November 2025

Automotive industry · Electrification · Energy transition · Incentive · Renewable energy · Sustainable Energy · Global Energy Security and Policy · Social Acceptance of Renewable Energy · Sustainability and Climate Change Governance