Energy, Climate Change and Environment

Energy, Climate Change & Environment

Both the threat posed by global warming and Russia’s aggression on the EU’s doorstep have placed energy security and energy use top of the agenda—without taking the eyes out of the ball regarding environmental preservation. This overarching topic covers the challenges posed by securing energy supplies, lowering greenhouse gas emissions, boosting the transition to renewable and sustainable energy sources, and devising mitigation and adaptation strategies to cope with climate change.

Related articles

Green Transition: How to Make It Finally Happen?

Niko Jaakkola and Riccardo Rovelli, Lorenzo Forni and Massimo Tavoni, Karen Pittel, Alessio Terzi and Roger Fouquet, Luisa Carpinelli and Daniele Franco, Simone Borghesi and Albert Ferrari, Niko Jaakkola, Frederick van der Ploeg and Anthony Venables, Gianmarco Ottaviano

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?

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It’s in the Data – Improved Market Power Mitigation in Electricity Markets


Jacqueline Adelowo, Moritz Bohland

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.

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Economic Growth and Ecological Sustainability

Can Economic Growth and Ecological Sustainability Coexist?

Expert Opinion
Is long-term economic growth compatible with ecologically sustainable development? This question stands as one of the most debated issues of our time. Over the past decades, growth driven by economic liberalization and globalization has brought prosperity to billions and reduced global poverty. However, this positive trajectory has come at a high cost to the environment and the depletion of natural resources. The limitations of economic growth at the expense of the environment are evident. Sustainable economic prosperity can only be achieved in the long run if it is coupled with ecological sustainability.
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Green Skills in German Manufacturing

Oliver Falck, Akash Kaura

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.

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A “Green Revolution” for Sub-Saharan Africa? Challenges and Opportunities

Michael Bernardi, Christa Hainz, Paulina Maier, Maria Waldinger

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.

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