Energy, Climate Change & Environment

The devastating effects of climate change are becoming increasingly evident. It is difficult to accurately predict or even quantify the risks. Despite this threat, the pace of change is slow. Why is the world failing to tackle this problem collectively and effectively? What constraints are holding us back? How can we overcome them and contribute to the formulation of a credible and acceptable climate policy? What policy instruments can help pave the way to the green transition?

In electricity markets, market power is typically measured by the difference between observed offers and underlying marginal (variable) cost of power production. Therefore, marginal cost estimates should be as accurate as possible to ensure unbiased measurement of market power and welfare-improving mitigation thereof. However, cost components and power plant characteristics are private information and firms have an incentive to overstate costs. Instead, system operators thus proxy marginal cost of power plants from past offers of the respective plant, which leaves room for strategic manipulation by firms. This article tests the accuracy of this best-practice benchmark approach against multiple suggested alternative methods. The results of our empirical analysis reveal a low estimation accuracy of the currently applied benchmark approach. All suggested alternative approaches deliver more precise estimates.

Germany is a strong industrial nation with manufacturing contributing significantly to its economy. The country faces challenges including decarbonization, digitalization, and increased competition, especially in the automotive sector. Germany's automotive industry is vital to its economy, contributing around 9% of GDP and employing over 2.5 million people. The industry must adapt to these changes, requiring a skilled workforce with a focus on green technologies. The country has done a remarkable job in greening its manufacturing and green skills are quickly gaining prominence. After all, Germany is still a hotbed of innovation, but cannot afford to become complacent.

Sub-Saharan Africa ranks as one of the world’s poorest regions. The causes of this are exceptionally complex, with political instability, lack of security, low levels of education, poor access to infrastructure and lack of integration into global trade networks as the leading explanations, among others. In recent decades, economists and agricultural development experts have been looking for ways to increase agricultural productivity in Sub-Saharan Africa through improved seeds, fertilisers and more modern farming technologies. This article looks at the measures in question, what has been done so far, and how scientists assess the effectiveness of these measures on agricultural productivity and poverty reduction. Finally, we present concrete recommendations.