From connection to collective action

Author: Thomas Bauwens

Thomas Bauwens is Assistant Professor of Sustainability and Collective Action at the Rotterdam School of Management, Erasmus University Rotterdam, and principal investigator of the SCENSUS programme. His research and teaching concern the conditions conducive to the creation of effective collective solutions to the social, economic or environmental grand challenges of our times. He can be found on X (previously Twitter) @ThomasBauwens1.

Renewable energy cooperatives have seen a significant rise in their contribution to sustainable energy production. These cooperatives, characterised by their community-driven approach and democratic ownership, are essential to the transition towards low-carbon energy systems.

In a study conducted by researchers from Utrecht University—Stefan Geskus, Matthijs Punt, Koen Frenken, Rense Corten—and Thomas Bauwens from Rotterdam School of Management, Erasmus University, we examined how different forms of social capital at the municipal level influence the prevalence of these cooperatives across the Netherlands.

The study highlights how community networks can shape the success of energy cooperatives and offers insights into how municipalities can foster a more sustainable energy future.

Our study reveals that while bonding social capital—the strong ties within tightly-knit local communities—may play a significant role in the success of energy cooperatives, bridging social capital—the connections between different communities—does not have a significant effect. This was surprising, as we had anticipated that both bonding and bridging social capital would positively influence the formation of energy cooperatives.

Social capital refers to the networks of relationships among people who live and work in a particular society. It is categorised into bonding and bridging social capital. While bonding occurs within close-knit communities, bridging spans broader social groups.

Conventional wisdom holds that bridging social capital is more conducive to fostering innovation and economic activity due to its role in connecting diverse groups and facilitating the exchange of ideas. However, our results indicate a different dynamic in the context of energy cooperatives.

Rather than bridging, it is the trust and cohesion provided by bonding social capital that plays a more critical role in their establishment and success. This suggests that for collective, community-driven entrepreneurial initiatives, the advantages of strong, internal bonds within a community can outweigh the need for connections to distant groups.

Notably, these findings challenge the notion that tightly knit communities are always resistant to new ideas, highlighting instead how robust social infrastructure can drive sustainable energy initiatives.

To gain a deeper understanding of the impact of social capital on energy cooperatives, we used data from the now-defunct Dutch social networking platform Hyves.

This allowed us to directly observe the structure of social networks within and between municipalities, providing a more accurate measurement of social capital compared to previous studies that relied on indirect proxies and samples.

Our findings suggest that fostering strong local networks should be a strategic priority for municipalities aiming to increase the number of renewable energy cooperatives. Policies that promote community engagement, such as facilitating local forums, providing support for neighbourhood initiatives, or implementing participatory decision-making processes, are likely to be more effective than those focused solely on technological innovation.

An important avenue for future research is the role of social capital in facilitating the collective action of cooperatives, especially at a national level.

While bonding social capital appears essential for the initial establishment of cooperatives, bridging social capital may be crucial for its later stages, for example navigating broader regulatory and organisational challenges, enabling cooperatives to collaborate effectively and influence policy.

In conclusion, the success of renewable energy cooperatives extends beyond technological and financial factors; it is deeply rooted in the social fabric of communities. By investing in and strengthening this fabric, municipalities can play a pivotal role in accelerating the transition to a sustainable energy future.

Publication: Geskus, S., Punt, M.B., Bauwens, Corten, R., T., Frenken, K. (2024). “Does Social Capital Foster Renewable Energy Cooperatives?”, Journal of Economic Geography.