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Modeling Economic Impacts of Renewable Energy Expansion – The Experience for Germany

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  • Dietmar Edler

Abstract

In recent years Germany - like other countries - has followed strategies to expand the share of renewable energy (RE) in the electricit y and heating market. Looking at realized investments and the dynamics of market penetrat ion of RE technologies the country is in the position of a frontrunner in this policy field. Given last year’s decision to phase out nuclear energy it can be expected that Germany will stay in the lead with respect to reshaping the energy system. The rationale behind the RE expansion are di verse. Climate change mitigation, reducing the dependence on energy imports by explo iting domestic energy potentials and the expectation of rising (global) prices for fossil fuels are discussed. A strong home market is seen as a competitive advantage for domestic suppliers of RE technologies on export markets so that fostering the diffusion of RE has also elements of “green” industrial policy. At the same time the (private) costs of energy based on RE sources are for the moment higher than costs of energy based on conventional sources. Therefore it is an interesting policy and scientific question if the overall balance of economic impacts of the German RE expansion strategy is positive or negative. This ques tion will be addressed applying econometric modeling and scenario-based analysis. See above See above

Suggested Citation

  • Dietmar Edler, 2012. "Modeling Economic Impacts of Renewable Energy Expansion – The Experience for Germany," EcoMod2012 4629, EcoMod.
    • Handle: RePEc:ekd:002672:4629
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    References listed on IDEAS

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    1. Blazejczak, Jürgen & Braun, Frauke G. & Edler, Dietmar & Schill, Wolf-Peter, 2014. "Economic effects of renewable energy expansion: A model-based analysis for Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1070-1080.
    2. Blanco, Maria Isabel & Rodrigues, Glória, 2009. "Direct employment in the wind energy sector: An EU study," Energy Policy, Elsevier, vol. 37(8), pages 2847-2857, August.
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    Cited by:

    1. Anne Nieters & Dr. Thomas Drosdowski & Dr. Ulrike Lehr, 2015. "Do extreme weather events damage the German economy?," GWS Discussion Paper Series 15-2, GWS - Institute of Economic Structures Research.
    2. Luigi Aldieri & Jonas Grafström & Kristoffer Sundström & Concetto Paolo Vinci, 2019. "Wind Power and Job Creation," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    3. Michael Briguglio & Maria Brown, 2019. "Civil society perspectives on green jobs in sustainable energy: The case of European Malta," Energy & Environment, , vol. 30(5), pages 867-881, August.
    4. Magdalena Ligus, 2017. "Evaluation of Economic, Social and Environmental Effects of Low-Emission Energy Technologies Development in Poland: A Multi-Criteria Analysis with Application of a Fuzzy Analytic Hierarchy Process (FA," Energies, MDPI, vol. 10(10), pages 1-20, October.
    5. Grzegorz Mentel & Anna Lewandowska & Justyna Berniak-Woźny & Waldemar Tarczyński, 2023. "Green and Renewable Energy Innovations: A Comprehensive Bibliometric Analysis," Energies, MDPI, vol. 16(3), pages 1-21, February.
    6. O'Sullivan, Marlene & Edler, Dietmar, 2020. "Gross Employment Effects in the Renewable Energy Industry in Germany : An Input–Output Analysis from 2000 to 2018," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12(15).
    7. Christian Lutz & Lisa Becker & Andreas Kemmler, 2021. "Socioeconomic Effects of Ambitious Climate Mitigation Policies in Germany," Sustainability, MDPI, vol. 13(11), pages 1-20, June.
    8. Michaela Makešová & Michaela Valentová, 2021. "The Concept of Multiple Impacts of Renewable Energy Sources: A Critical Review," Energies, MDPI, vol. 14(11), pages 1-21, May.
    9. Barbara Breitschopf & Anne Held & Gustav Resch, 2016. "A concept to assess the costs and benefits of renewable energy use and distributional effects among actors: The example of Germany," Energy & Environment, , vol. 27(1), pages 55-81, February.
    10. Marlene O’Sullivan & Dietmar Edler, 2020. "Gross Employment Effects in the Renewable Energy Industry in Germany—An Input–Output Analysis from 2000 to 2018," Sustainability, MDPI, vol. 12(15), pages 1-21, July.

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