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European Green Deal: Using Ambitious Climate Targets and Renewable Energy to Climb out of the Economic Crisis

Author

Listed:
  • Karlo Hainsch
  • Leonard Göke
  • Claudia Kemfert
  • Pao-Yu Oei
  • Christian von Hirschhausen

Abstract

The European Green Deal, initiated by the EU Commission, is a package of measures aimed at decarbonization and sustainable economic development with the goal of making the European Union climate neutral by 2050. To achieve this goal, the emission reductions target must be increased from 40 percent to 65 percent compared to 1990 levels, as the model calculations in this Weekly Report show. Fossil and nuclear power plants must be completely substituted with 100 percent renewable energy sources. Compared to the current course, over 60 billion tons of CO2 could be saved as a result. Expansive investments must be made to build a solid basis for the current national and EU-level economic stimulus packages. Investments in renewable energy require around 3,000 billion euros; however, they are accompanied by savings of almost 2,000 billion euros from not importing fossil fuels. The German EU Council Presidency (its term lasting from July to December 2020) faces the challenge of persuading the Member States to adopt a common strategy for implementing the European Green Deal as part of their respective economic stimulus packages.

Suggested Citation

  • Karlo Hainsch & Leonard Göke & Claudia Kemfert & Pao-Yu Oei & Christian von Hirschhausen, 2020. "European Green Deal: Using Ambitious Climate Targets and Renewable Energy to Climb out of the Economic Crisis," DIW Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 10(28/29), pages 303-310.
    • Handle: RePEc:diw:diwdwr:dwr10-28-1
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    Citations

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    Cited by:

    1. Gutiérrez-Meave, Raúl & Rosellón, Juan & Sarmiento, Luis, 2021. "The Effect of Changing Marginal-Cost to Physical-Order Dispatch in the Power Sector," RFF Working Paper Series 21-19, Resources for the Future.
    2. Göke, Leonard & Kendziorski, Mario, 2022. "Adequacy of time-series reduction for renewable energy systems," Energy, Elsevier, vol. 238(PA).
    3. Leonard Goke & Mario Kendziorski, 2021. "Adequacy of time-series reduction for renewable energy systems," Papers 2101.06221, arXiv.org, revised Aug 2021.
    4. Panarello, Demetrio & Gatto, Andrea, 2023. "Decarbonising Europe – EU citizens’ perception of renewable energy transition amidst the European Green Deal," Energy Policy, Elsevier, vol. 172(C).

    More about this item

    Keywords

    Europe; investment; energy; climate policy; recovery;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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