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EconPol: Economic Upswing Cycles Are a Strong Driver of Carbon Emissions

Upswing phases are strongly linked to a rise in CO2 emissions. The effect is strongest in countries that depend on energy-intensive sectors. This is a key finding of the latest EconPol working paper. “We should adjust European environmental policy over the economic cycle:  A good idea is to apply higher carbon taxes in ‘good times.’ We need to consider (procyclical) green taxation if we want to reach the climate goals as defined under the EU’s Covid-19 Recovery Plan,” says Antonia Díaz, one of the authors of the study.

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EconPol: Coronavirus Crisis Promotes Altruism and Social Exchange

Information on the Covid-19 pandemic triggers altruistic behavior and willingness to discuss with citizens of their own country, other EU countries, and non-EU citizens. Information on the importance of shared European values also increases altruism and reciprocity, but only toward compatriots and fellow Europeans. These are the findings of a large-scale survey experiment conducted by the EconPol Europe research network.

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EconPol Policy Brief: A Simpler Way of Taxing Businesses in the Digital Age

The OECD should consider simpler rules for allocating profits and taxing rights to countries where international companies have their markets. This is a proposal put forth in a study by EconPol, the European Network for Economic and Fiscal Policy Research. The OECD has suggested that taxing rights of multinational companies should be allocated using a revenue-based formula.

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EconPol Europe Policy Report: New Financial Instrument Could Improve Retirement Income for 90,000 German Households

Fully 90,000 households in Germany could benefit from a reverse mortgage to boost their retirement income. This is the finding of a study conducted by the EconPol research network. Demographic change is forcing many European citizens to consider a funded pension. With a reverse mortgage, real estate assets can be used to close a pension gap – either in the form of a lump sum payment or as monthly pension payments. This instrument is widely used in the US and the UK but is rare in Germany.

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EconPol Research: Procurement Officials Aim to Avoid Bidders with Bad Reputation

Key priority of German and Finnish public procurement officials is avoiding awarding public contracts to bidders with bad reputation. Yet, their ability to do so may be limited. Officials also dislike procurement outcomes that exceed expected costs or fall short of expected quality a recent EconPol study finds.  "Exceeding the budget in the administration is perceived to be much worse than falling short. This can be explained for example by budget overruns often being criticized in public, e.g.

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