@article{MontroneSteckelKalkuhl2022,
  author    = {Montrone, Lorenzo and Steckel, Jan Christoph and Kalkuhl, Matthias},
  title     = {The type of power capacity matters for economic development},
  series = {Resource and energy economics},
  volume    = {69},
  journal   = {Resource and energy economics},
  publisher = {Elsevier},
  address   = {Amsterdam},
  issn      = {0928-7655},
  doi       = {10.1016/j.reseneeco.2022.101313},
  pages     = {17},
  year      = {2022},
  abstract  = {We examine the relationship between different types of power investments and regional economic dynamics. We construct a novel panel dataset combining data on regional GDP and power capacity additions for different technologies between 1960 and 2015, which covers 65\% of the global power capacity that has been installed in this period. We use an event study design to identify the effect of power capacity addition on GDP per capita, exploiting the fact that the exact amount of power capacity coming online each year is determined by random construction delays. We find evidence that GDP per capita increases by 0.2\% in the 6 years around the coming online of 100 MW coal-fired power capacity. We find similar effects for hydropower capacity, but not for any other type of power capacity. The positive effects are regionally bounded and stronger for projects on new sites (green-field). The magnitude of this effect might not be comparable to the total external costs of building new coal-fired power capacity, yet our results help to explain why policymakers favor coal investments for spurring regional growth.},
  language  = {en}
}
@article{PiontekKalkuhlKriegleretal.2019,
  author    = {Piontek, Franziska and Kalkuhl, Matthias and Kriegler, Elmar and Schultes, Anselm and Leimbach, Marian and Edenhofer, Ottmar and Bauer, Nico},
  title     = {Economic Growth Effects of Alternative Climate Change Impact Channels in Economic Modeling},
  series = {Environmental \& resource economics : the official journal of the European Association of Environmental and Resource Economists},
  volume    = {73},
  journal   = {Environmental \& resource economics : the official journal of the European Association of Environmental and Resource Economists},
  number    = {4},
  publisher = {Springer},
  address   = {Dordrecht},
  issn      = {0924-6460},
  doi       = {10.1007/s10640-018-00306-7},
  pages     = {1357 -- 1385},
  year      = {2019},
  abstract  = {Despite increasing empirical evidence of strong links between climate and economic growth, there is no established model to describe the dynamics of how different types of climate shocks affect growth patterns. Here we present the first comprehensive, comparative analysis of the long-term dynamics of one-time, temporary climate shocks on production factors, and factor productivity, respectively, in a Ramsey-type growth model. Damages acting directly on production factors allow us to study dynamic effects on factor allocation, savings and economic growth. We find that the persistence of impacts on economic activity is smallest for climate shocks directly impacting output, and successively increases for direct damages on capital, loss of labor and productivity shocks, related to different responses in savings rates and factor-specific growth. Recurring shocks lead to large welfare effects and long-term growth effects, directly linked to the persistence of individual shocks. Endogenous savings and shock anticipation both have adaptive effects but do not eliminate differences between impact channels or significantly lower the dissipation time. Accounting for endogenous growth mechanisms increases the effects. We also find strong effects on income shares, important for distributional implications. This work fosters conceptual understanding of impact dynamics in growth models, opening options for links to empirics.},
  language  = {en}
}