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| A major focus of ZEW Mannheim’s research is climate change mitigation. We use economic methods to analyse the emergence of environmental problems, to evaluate climate policy measures, and to provide recommendations to policymakers. The September 2022 ZEW Monthly edition provides insights into our work on “climate policy”. |
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Climate Protection Must Be Worthwhile
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| ECONOMIC REASON FOR A CLEAR CONSCIENCE
| The book by ZEW president Achim Wambach analyses the different measures of climate policy and the market mechanisms behind them. In this process, he comes to surprising results: solar panels may make sense economically, but not in terms of climate policy. And the purchase of green electricity does not cause a reduction in CO2 emissions, while using the car less often does. The book sheds light on the opaque web of individual climate policy measures and provides criteria for evaluating what really contributes to climate protection.
ACHIM WAMBACH:
“The emphasis on individual responsibility is a characteristic of climate policy. But acting out of a good intention does not necessarily mean doing good. This book sides with the ethics of responsibility. An action is good if something good follows from it.”
↗ Find the book at Verlag Herder (in German only)
↗ Essay on the book in Wirtschaftswoche (in German only) |
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Environmental and Climate Research
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THE INTERPLAY OF EMISSIONS TRADING AND ELECTRICITY LEVY
What is the impact of using the revenues from emissions trading to replace part of the electricity levy employed to support renewable energies in contrast with distributing them to consumers as a lump sum? A recent ZEW study provides important evidence in this regard.
↗ More about the study
NUDGES: CAN SELF-SET GOALS ENCOURAGE RESOURCE CONSERVATION?
There are numerous ways to steer individual behaviour towards sustainability. One example are nudges, such as self-set goals. Nudges can help individuals to implement privately or socially desirable actions. A ZEW study is the first to conduct a field experiment to analyse the effectiveness of self-set goals in reducing household energy consumption.
↗ More about the study
HEAT WAVES CAUSE EXPORTS TO PLUMMET WORLDWIDE
Extreme heat causes labour productivity to fall. Supply shortfalls caused by this have an impact on global trade: In months when a country’s average temperature is at least 30 °C, exports fall by 3.4 per cent on average – compared to a month when the average temperature was below this threshold.
↗ More about the study |
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AT A GLANCE
| ↗ IMPACT OF THE COVID-19 PANDEMIC ON START-UPS
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In the Covid-19 pandemic, it was shown that young firms – i.e. those up to four years old – proved to be particularly adaptable. They adjusted to the new situation and, on average, the share of young firms with process innovations even increased. Overall, the number of start-ups exceeded the number of closures in both 2020 and 2021. This is probably largely due to the financial aid paid out, the regulations on short-time work and the temporary suspension of the obligation to file for insolvency. |
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CURRENT ZEW RESEARCH
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| ↗ MINIMUM WAGE HAD ONLY LITTLE IMPACT ON COMPETITIVE CONDITIONS
The introduction of the minimum wage in 2015 and the first increase in January 2017 hardly caused any companies to leave the market. Some sectors even became more productive as a result of the wage floor – and thus promoted competition overall.
↗ JOINT EU NATURAL GAS PROCUREMENT MAY COUNTER ENERGY PRICE SPIKES
An EU-wide procurement of natural gas could reduce dependence on Russian gas while protecting European citizens and businesses from exorbitant energy costs. With centralisation, the benefits usually outweigh the associated costs. In fact, the cost-benefit analysis is much more favourable for natural gas than for other products.
↗ IMPACT OF THE COVID-19 PANDEMIC ON THE LABOUR MARKET
If a regional labour market was already well equipped with digital capital before the pandemic, this led to significantly fewer workers having to be put on short-time work during the first eight months of the pandemic. |
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↗ “THE STRUGGLE TO CREATE A SOCIO-ECOLOGICAL MARKET ECONOMY”
| | The federal government of Germany has taken on a huge task for this legislative period – it aims to change the economic model of the Federal Republic of Germany towards a “social-ecological market economy”. Though the building blocks are already being put in place, much about the ultimate form of such an economy remains uncertain. If it is designed well, it has the potential – like Germany’s social market economy in years past – to become a successful model for other countries. Moreover, it would stand to advance climate action around the world. More market mechanisms such as a second emissions trading system for Europe and differentiated prices for the energy transition, as well as trust in the market's discovery processes, are necessary for this. |
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EVENTS
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| ↗ Europe in Crisis Mode: What Will Become of Climate Policy?
Franziska Brantner (Member of the German Parliament), Saori Dubourg (BASF SE) and Sebastian Rausch (ZEW) discussed effective climate protection at ZEW on 16 September 2022. ZEW President Achim Wambach moderated the debate, which took place in the course of the ZEW Alumni Day focusing on climate policy and the energy transition.
| UPCOMING
| ↗ Real Estate Markets and Capital Markets Conference
The Network on Real Estate Markets and Capital Markets (ReCapNet) provides a forum for researchers in the areas of real estate finance, investment, economics, development, housing, urban planning, and public policy to present advanced working papers. The 14th conference of the network will take place on 27–28.10.2022 and will be hosted by ZEW. |
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→ CONTACT FOR QUESTIONS OR SUGGESTIONS ON THE CONTENT
| | Dr. Frank Herkenhoff | frank.herkenhoff@zew.de |
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