In a remarkably simple and yet in one of the most original and insightful observations of 20th century economics, Gordon Tullock observed that there are efficiency losses when public policies and political behavior create contestable rents. Tullock also observed that social losses from...

This paper sheds light on the political economy of local energy politics both from a theoretical and an empirical perspective. A case study of a small town in Southern Germany (Schönau) is presented, where environmentalists have won the political contest against the regional energy monopolist...