TY - RPRT A1 - Giotopoulos, Ioannis A1 - Kritikos, Alexander A1 - Tsakanikas, Aggelos T1 - A Lasting Crisis affects R&D decisions of smaller firms BT - the Greek experience T2 - CEPA Discussion Papers N2 - We use the prolonged Greek crisis as a case study to understand how a lasting economic shock affects the innovation strategies of firms in economies with moderate innovation activities. Adopting the 3-stage CDM model, we explore the link between R&D, innovation, and productivity for different size groups of Greek manufacturing firms during the prolonged crisis. At the first stage, we find that the continuation of the crisis is harmful for the R&D engagement of smaller firms while it increased the willingness for R&D activities among the larger ones. At the second stage, among smaller firms the knowledge production remains unaffected by R&D investments, while among larger firms the R&D decision is positively correlated with the probability of producing innovation, albeit the relationship is weakened as the crisis continues. At the third stage, innovation output benefits only larger firms in terms of labor productivity, while the innovation-productivity nexus is insignificant for smaller firms during the lasting crisis. T3 - CEPA Discussion Papers - 49 KW - Small firms KW - Large firms KW - R&D KW - Innovation KW - Productivity KW - Long-term Crisis Y1 - 2022 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-558442 SN - 2628-653X IS - 49 ER - TY - JOUR A1 - Giotopoulos, Ioannis A1 - Kritikos, Alexander A1 - Tsakanikas, Aggelos T1 - A lasting crisis affects R&D decisions of smaller firms BT - the Greek experience JF - The Journal of technology transfer N2 - We use the prolonged Greek crisis as a case study to understand how a lasting economic shock affects the innovation strategies of firms in economies with moderate innovation activities. Adopting the 3-stage CDM model, we explore the link between R&D, innovation, and productivity for different size groups of Greek manufacturing firms during the prolonged crisis. At the first stage, we find that the continuation of the crisis is harmful for the R&D engagement of smaller firms while it increased the willingness for R&D activities among the larger ones. At the second stage, among smaller firms the knowledge production remains unaffected by R&D investments, while among larger firms the R&D decision is positively correlated with the probability of producing innovation, albeit the relationship is weakened as the crisis continues. At the third stage, innovation output benefits only larger firms in terms of labor productivity, while the innovation-productivity nexus is insignificant for smaller firms during the lasting crisis. KW - small firms KW - large firms KW - R&D KW - innovation KW - productivity KW - long-term crisis Y1 - 2022 U6 - https://doi.org/10.1007/s10961-022-09957-7 SN - 0892-9912 IS - 48 SP - 1161 EP - 1175 PB - Springer Science+Business Media CY - Dordrecht ER - TY - JOUR A1 - Sureth, Michael A1 - Kalkuhl, Matthias A1 - Edenhofer, Ottmar A1 - Rockström, Johan T1 - A welfare economic approach to planetary boundaries JF - Jahrbücher für Nationalökonomie und Statistik N2 - The crises of both the climate and the biosphere are manifestations of the imbalance between human extractive, and polluting activities and the Earth’s regenerative capacity. Planetary boundaries define limits for biophysical systems and processes that regulate the stability and life support capacity of the Earth system, and thereby also define a safe operating space for humanity on Earth. Budgets associated to planetary boundaries can be understood as global commons: common pool resources that can be utilized within finite limits. Despite the analytical interpretation of planetary boundaries as global commons, the planetary boundaries framework is missing a thorough integration into economic theory. We aim to bridge the gap between welfare economic theory and planetary boundaries as derived in the natural sciences by presenting a unified theory of cost-benefit and cost-effectiveness analysis. Our pragmatic approach aims to overcome shortcomings of the practical applications of CEA and CBA to environmental problems of a planetary scale. To do so, we develop a model framework and explore decision paradigms that give guidance to setting limits on human activities. This conceptual framework is then applied to planetary boundaries. We conclude by using the realized insights to derive a research agenda that builds on the understanding of planetary boundaries as global commons. KW - cost-benefit analysis KW - cost-effectiveness analysis KW - global commons KW - planetary boundaries KW - precautionary principle KW - shadow price KW - uncertainty KW - welfare economics Y1 - 2023 U6 - https://doi.org/10.1515/jbnst-2022-0022 SN - 0021-4027 SN - 2366-049X VL - 243 IS - 5 SP - 477 EP - 542 PB - De Gruyter Oldenbourg CY - Berlin ER - TY - RPRT A1 - Estrin, Saul A1 - Khavul, Susanna A1 - Kritikos, Alexander A1 - Löher, Jonas T1 - Access to digital finance BT - equity crowdfunding across countries and platforms T2 - CEPA Discussion Papers N2 - Financing entrepreneurship spurs innovation and economic growth. Digital financial platforms that crowdfund equity for entrepreneurs have emerged globally, yet they remain poorly understood. We model equity crowdfunding in terms of the relationship between the number of investors and the amount of money raised per pitch. We examine heterogeneity in the average amount raised per pitch that is associated with differences across three countries and seven platforms. Using a novel dataset of successful fundraising on the most prominent platforms in the UK, Germany, and the USA, we find the underlying relationship between the number of investors and the amount of money raised for entrepreneurs is loglinear, with a coefficient less than one and concave to the origin. We identify significant variation in the average amount invested in each pitch across countries and platforms. Our findings have implications for market actors as well as regulators who set competitive frameworks. T3 - CEPA Discussion Papers - 72 KW - equity crowdfunding KW - soft information KW - entrepreneurship KW - finance KW - financial access and inclusion Y1 - 2024 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-623261 SN - 2628-653X IS - 72 ER - TY - JOUR A1 - Warszawski, Lila A1 - Kriegler, Elmar A1 - Lenton, Timothy M. A1 - Gaffney, Owen A1 - Jacob, Daniela A1 - Klingenfeld, Daniel A1 - Koide, Ryu A1 - Costa, María Máñez A1 - Messner, Dirk A1 - Nakicenovic, Nebojsa A1 - Schellnhuber, Hans Joachim A1 - Schlosser, Peter A1 - Takeuchi, Kazuhiko A1 - van der Leeuw, Sander A1 - Whiteman, Gail A1 - Rockström, Johan T1 - All options, not silver bullets, needed to limit global warming to 1.5 °C BT - a scenario appraisal JF - Environmental research letters N2 - Climate science provides strong evidence of the necessity of limiting global warming to 1.5 °C, in line with the Paris Climate Agreement. The IPCC 1.5 °C special report (SR1.5) presents 414 emissions scenarios modelled for the report, of which around 50 are classified as '1.5 °C scenarios', with no or low temperature overshoot. These emission scenarios differ in their reliance on individual mitigation levers, including reduction of global energy demand, decarbonisation of energy production, development of land-management systems, and the pace and scale of deploying carbon dioxide removal (CDR) technologies. The reliance of 1.5 °C scenarios on these levers needs to be critically assessed in light of the potentials of the relevant technologies and roll-out plans. We use a set of five parameters to bundle and characterise the mitigation levers employed in the SR1.5 1.5 °C scenarios. For each of these levers, we draw on the literature to define 'medium' and 'high' upper bounds that delineate between their 'reasonable', 'challenging' and 'speculative' use by mid century. We do not find any 1.5 °C scenarios that stay within all medium upper bounds on the five mitigation levers. Scenarios most frequently 'over use' CDR with geological storage as a mitigation lever, whilst reductions of energy demand and carbon intensity of energy production are 'over used' less frequently. If we allow mitigation levers to be employed up to our high upper bounds, we are left with 22 of the SR1.5 1.5 °C scenarios with no or low overshoot. The scenarios that fulfil these criteria are characterised by greater coverage of the available mitigation levers than those scenarios that exceed at least one of the high upper bounds. When excluding the two scenarios that exceed the SR1.5 carbon budget for limiting global warming to 1.5 °C, this subset of 1.5 °C scenarios shows a range of 15–22 Gt CO2 (16–22 Gt CO2 interquartile range) for emissions in 2030. For the year of reaching net zero CO2 emissions the range is 2039–2061 (2049–2057 interquartile range). KW - climate change KW - emissions scenarios KW - 1.5 ◦C KW - negative emissions Y1 - 2021 U6 - https://doi.org/10.1088/1748-9326/abfeec SN - 1748-9326 N1 - Corrigendum: 10.1088/1748-9326/acbf6a VL - 16 IS - 6 PB - IOP Publishing CY - Bristol ER - TY - JOUR A1 - Strefler, Jessica A1 - Kriegler, Elmar A1 - Bauer, Nico A1 - Luderer, Gunnar A1 - Pietzcker, Robert C. A1 - Giannousakis, Anastasis A1 - Edenhofer, Ottmar T1 - Alternative carbon price trajectories can avoid excessive carbon removal JF - Nature communications N2 - The large majority of climate change mitigation scenarios that hold warming below 2 °C show high deployment of carbon dioxide removal (CDR), resulting in a peak-and-decline behavior in global temperature. This is driven by the assumption of an exponentially increasing carbon price trajectory which is perceived to be economically optimal for meeting a carbon budget. However, this optimality relies on the assumption that a finite carbon budget associated with a temperature target is filled up steadily over time. The availability of net carbon removals invalidates this assumption and therefore a different carbon price trajectory should be chosen. We show how the optimal carbon price path for remaining well below 2 °C limits CDR demand and analyze requirements for constructing alternatives, which may be easier to implement in reality. We show that warming can be held at well below 2 °C at much lower long-term economic effort and lower CDR deployment and therefore lower risks if carbon prices are high enough in the beginning to ensure target compliance, but increase at a lower rate after carbon neutrality has been reached. KW - climate-change mitigation KW - climate sciences KW - environmental sciences Y1 - 2021 U6 - https://doi.org/10.1038/s41467-021-22211-2 SN - 2041-1723 VL - 12 IS - 1 PB - Nature Publishing Group CY - London ER - TY - JOUR A1 - Duan, Hongbo A1 - Zhou, Sheng A1 - Jiang, Kejun A1 - Bertram, Christoph A1 - Harmsen, Mathijs A1 - Kriegler, Elmar A1 - van Vuuren, Detlef P. A1 - Wang, Shouyang A1 - Fujimori, Shinichiro A1 - Tavoni, Massimo A1 - Ming, Xi A1 - Keramidas, Kimon A1 - Iyer, Gokul A1 - Edmonds, James T1 - Assessing China’s efforts to pursue the 1.5°C warming limit JF - Science N2 - Given the increasing interest in keeping global warming below 1.5°C, a key question is what this would mean for China’s emission pathway, energy restructuring, and decarbonization. By conducting a multimodel study, we find that the 1.5°C-consistent goal would require China to reduce its carbon emissions and energy consumption by more than 90 and 39%, respectively, compared with the “no policy” case. Negative emission technologies play an important role in achieving near-zero emissions, with captured carbon accounting on average for 20% of the total reductions in 2050. Our multimodel comparisons reveal large differences in necessary emission reductions across sectors, whereas what is consistent is that the power sector is required to achieve full decarbonization by 2050. The cross-model averages indicate that China’s accumulated policy costs may amount to 2.8 to 5.7% of its gross domestic product by 2050, given the 1.5°C warming limit. Y1 - 2021 U6 - https://doi.org/10.1126/science.aba8767 SN - 1095-9203 SN - 0036-8075 VL - 372 IS - 6540 SP - 378 EP - 385 PB - American Association for the Advancement of Science CY - Washington, DC ER - TY - JOUR A1 - Bruttel, Lisa Verena A1 - Gueth, Werner T1 - Asymmetric voluntary cooperation BT - a repeated sequential best-shot experiment JF - International Journal of Game Theory N2 - This paper tests the robustness of voluntary cooperation in a sequential best shot game, a public good game in which the maximal contribution determines the level of public good provision. Thus, efficiency enhancing voluntary cooperation requires asymmetric behavior whose coordination is more difficult. Nevertheless, we find robust cooperation irrespective of treatment-specific institutional obstacles. To explain this finding, we distinguish three behavioral patterns aiming at both, voluntary cooperation and (immediate) payoff equality. KW - Best shot game KW - Coordination KW - Transfer KW - Refund KW - Experiment Y1 - 2018 U6 - https://doi.org/10.1007/s00182-018-0633-y SN - 0020-7276 SN - 1432-1270 VL - 47 IS - 3 SP - 873 EP - 891 PB - Springer CY - Heidelberg ER - TY - RPRT A1 - Kalkuhl, Matthias A1 - Flachsland, Christian A1 - Knopf, Brigitte A1 - Amberg, Maximilian A1 - Bergmann, Tobias A1 - Kellner, Maximilian A1 - Stüber, Sophia A1 - Haywood, Luke A1 - Roolfs, Christina A1 - Edenhofer, Ottmar T1 - Auswirkungen der Energiepreiskrise auf Haushalte in Deutschland BT - sozialpolitische Herausforderungen und Handlungsoptionen Y1 - 2022 UR - https://www.mcc-berlin.net/fileadmin/data/C18_MCC_Publications/2022_MCC_Auswirkungen_der_Energiepreiskrise_auf_Haushalte.pdf PB - Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH CY - Berlin ER - TY - RPRT A1 - Schröder, Carsten A1 - Göbler, Konstantin A1 - Grabka, Markus M. A1 - Kolb, Chris A1 - Shupe, Cortnie A1 - Caliendo, Marco A1 - Tübbicke, Stefan A1 - Priem, Maximilian T1 - Auswirkungen des gesetzlichen Mindestlohns auf Haushaltseinkommen, Konsum- und Sparverhalten BT - Endbericht Y1 - 2020 UR - https://www.mindestlohn-kommission.de/DE/Forschung/Projekte/pdf/Bericht-Mindestlohn-Haushaltseinkommen.pdf?__blob=publicationFile&v=1 SP - 1 EP - 85 PB - Deutsche Institut für Wirtschaftsforschung CY - Berlin ER - TY - JOUR A1 - Singhal, Puja A1 - Pahle, Michael A1 - Kalkuhl, Matthias A1 - Sommer, Stephan A1 - Levesque, Antoine A1 - Berneiser, Jessica T1 - Beyond good faith BT - why evidence-based policy is necessary to decarbonize buildings cost-effectively JF - SSRN eLibrary / Social Science Research Network N2 - The ambitious climate targets set by industrialized nations worldwide cannot be met without decarbonizing the building stock. Using Germany as a case study, this paper takes stock of the extensive set of energy efficiency policies that are already in place and clarifies that they have been designed “in good faith” but lack in overall effectiveness as well as cost-efficiency in achieving these climate targets. We map out the market failures and behavioural considerations that are potential reasons for why realized energy savings fall below expectations and why the household adoption of energy-efficient and low-carbon technologies has remained low. We highlight the pressing need for data and modern empirical research to develop targeted and cost-effective policies seeking to correct these market failures. To this end, we identify some key research questions and identify gaps in the data required for evidence-based policy. KW - energy efficiency KW - decarbonization KW - housing sector KW - heat demand KW - evidence-based policy Y1 - 2021 U6 - https://doi.org/10.2139/ssrn.3947800 SN - 1556-5068 PB - SSRN - Elsevier CY - Rochester, NY ER - TY - JOUR A1 - Merfort, Leon A1 - Bauer, Nico A1 - Humpenöder, Florian A1 - Klein, David A1 - Strefler, Jessica A1 - Popp, Alexander A1 - Luderer, Gunnar A1 - Kriegler, Elmar T1 - Bioenergy-induced land-use-change emissions with sectorally fragmented policies JF - Nature climate change N2 - Controlling bioenergy-induced land-use-change emissions is key to exploiting bioenergy for climate change mitigation. However, the effect of different land-use and energy sector policies on specific bioenergy emissions has not been studied so far. Using the global integrated assessment model REMIND-MAgPIE, we derive a biofuel emission factor (EF) for different policy frameworks. We find that a uniform price on emissions from both sectors keeps biofuel emissions at 12 kg CO2 GJ−1. However, without land-use regulation, the EF increases substantially (64 kg CO2 GJ−1 over 80 years, 92 kg CO2 GJ−1 over 30 years). We also find that comprehensive coverage (>90%) of carbon-rich land areas worldwide is key to containing land-use emissions. Pricing emissions indirectly on the level of bioenergy consumption reduces total emissions by cutting bioenergy demand but fails to reduce the average EF. In the absence of comprehensive and timely land-use regulation, bioenergy thus may contribute less to climate change mitigation than assumed previously. KW - agriculture KW - climate-change mitigation KW - energy policy KW - energy supply and demand KW - environmental economics Y1 - 2023 U6 - https://doi.org/10.1038/s41558-023-01697-2 SN - 1758-678X SN - 1758-6798 VL - 13 IS - 7 SP - 685 EP - 692 PB - Nature Publ. Group CY - London ER - TY - JOUR A1 - Edenhofer, Ottmar A1 - Kalkuhl, Matthias A1 - Roolfs, Christina T1 - Carbon pricing and revenue recycling BT - an overview of vertical and horizontal equity effects for Germany JF - CESifo forum Y1 - 2021 UR - https://www.cesifo.org/DocDL/CESifo-Forum-2021-5-edenhofer-kalkuhl-roolfs-carbon-pricing-september.pdf SN - 2190-717X SN - 1615-245X VL - 22 IS - 5 SP - 10 EP - 14 PB - Ifo CY - Munich ER - TY - JOUR A1 - Caliendo, Marco A1 - Künn, Steffen A1 - Weissenberger, Martin T1 - Catching up or lagging behind? BT - the long-term business and innovation potential of subsidized start-ups out of unemployment JF - Research policy : policy, management and economic studies of science, technology and innovation N2 - From an active labor market policy perspective, start-up subsidies for unemployed individuals are very effective in improving long-term labor market outcomes for participants. From a business perspective, however, the assessment of these public programs is less clear since they might attract individuals with low entrepreneurial abilities and produce businesses with low survival rates and little contribution to job creation, economic growth, and innovation. In this paper, we use a rich data set to compare participants of a German start-up subsidy program for unemployed individuals to a group of regular founders who started from non-unemployment and did not receive the subsidy. The data allows us to analyze their business performance up until 40 months after business formation. We find that formerly subsidized founders lag behind not only in survival and job creation, but especially also in innovation activities. The gaps in these business outcomes are relatively constant or even widening over time. Hence, we do not see any indication of catching up in the longer run. While the gap in survival can be entirely explained by initial differences in observable start-up characteristics, the gap in business development remains and seems to be the result of restricted access to capital as well as differential business strategies and dynamics. Considering these conflicting results for the assessment of the subsidy program from an ALMP and business perspective, policy makers need to carefully weigh the costs and benefits of such a strategy to find the right policy mix. KW - entrepreneurship KW - start-up subsidies KW - business growth KW - innovation KW - job KW - creation Y1 - 2020 U6 - https://doi.org/10.1016/j.respol.2020.104053 SN - 0048-7333 SN - 1873-7625 VL - 49 IS - 10 PB - Elsevier CY - Amsterdam ER - TY - CHAP A1 - Hustedt, Thurid A1 - Seyfried, Markus T1 - Challenges, Triggers and Initiatorsof Climate Policies and Implications for Policy Formulation T2 - Leidenschaft und Augenmaß : sozialwissenschaftliche Perspektiven auf Entwicklung, Verwaltung, Umwelt und Klima : Festschrift für Harald Fuhr Y1 - 2020 SN - 978-3-8487-5249-2 SP - 169 EP - 179 PB - Nomos CY - Baden-Baden ER - TY - JOUR A1 - Keser, Claudia A1 - Kliemt, Hartmut A1 - Späth, Maximilian T1 - Charitable giving BT - the role of framing and information JF - PLoS ONE N2 - We investigate how different levels of information influence the allocation decisions of donors who are entitled to freely distribute a fixed monetary endowment between themselves and a charitable organization in both giving and taking frames. Participants donate significantly higher amounts, when the decision is described as taking rather than giving. This framing effect becomes smaller if more information about the charity is provided. KW - experimental economics KW - dictator game KW - experimental design KW - labor economics KW - welfare economics KW - language KW - prosocial behavior KW - university laboratories Y1 - 2023 U6 - https://doi.org/10.1371/journal.pone.0288400 SN - 1932-6203 VL - 18 IS - 7 PB - Public Library of Science (PLoS) CY - San Francisco, California ER - TY - RPRT A1 - Andres, Maximilian A1 - Bruttel, Lisa Verena A1 - Friedrichsen, Jana T1 - Choosing between explicit cartel formation and tacit collusion – An experiment T2 - CEPA Discussion Papers N2 - Numerous studies investigate which sanctioning institutions prevent cartel formation but little is known as to how these sanctions work. We contribute to understanding the inner workings of cartels by studying experimentally the effect of sanctioning institutions on firms’ communication. Using machine learning to organize the chat communication into topics, we find that firms are significantly less likely to communicate explicitly about price fixing when sanctioning institutions are present. At the same time, average prices are lower when communication is less explicit. A mediation analysis suggests that sanctions are effective in hindering cartel formation not only because they introduce a risk of being fined but also by reducing the prevalence of explicit price communication. T3 - CEPA Discussion Papers - 19 KW - cartel KW - collusion KW - communication KW - machine learning KW - experiment Y1 - 2020 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-473885 SN - 2628-653X IS - 19 ER - TY - JOUR A1 - Diluiso, Francesca A1 - Annicchiarico, Barbara A1 - Kalkuhl, Matthias A1 - Minx, Jan Christoph T1 - Climate actions and macro-financial stability BT - the role of central banks JF - Journal of environmental economics and management N2 - Limiting global warming to well below 2 degrees C may pose threats to macroeconomic and financial stability. In an estimated Euro Area New Keynesian model with financial frictions and climate policy, we study the possible perils of a low-carbon transition and evaluate the role of monetary policy and financial regulation. We show that, even for very ambitious climate targets, transition costs are moderate along a timely and gradual mitigation pathway. Inflation volatility strongly increases for disorderly climate policy, demanding a strong monetary response by central banks. In reaction to an adverse financial shock originating in the fossil sector, a green quantitative easing policy can provide an effective stimulus to the economy, but its stabilizing properties do not significantly differ from those of market neutral asset purchase programs. A financial regulation, encouraging the decarbonization of the banks' balance sheets via ad hoc capital requirements, can significantly reduce the severity of a financial crisis, but prolongs the recovery phase. Our results suggest that the involvement of central banks in climate actions must be carefully designed to be in compliance with their mandate and to avoid unintended trade-offs. KW - Climate policy KW - Green transition KW - Monetary policy KW - Capital requirements KW - Green quantitative easing KW - Euro area Y1 - 2021 U6 - https://doi.org/10.1016/j.jeem.2021.102548 SN - 0095-0696 SN - 1096-0449 VL - 110 PB - Elsevier CY - Amsterdam ER - TY - JOUR A1 - Auer, Cornelia A1 - Kriegler, Elmar A1 - Carlsen, Henrik A1 - Kok, Kasper A1 - Pedde, Simona A1 - Krey, Volker A1 - Müller, Boris T1 - Climate change scenario services BT - from science to facilitating action JF - One earth N2 - The goal of limiting global warming to well below 2°C as set out in the Paris Agreement calls for a strategic assessment of societal pathways and policy strategies. Besides policy makers, new powerful actors from the private sector, including finance, have stepped up to engage in forward-looking assessments of a Paris-compliant and climate-resilient future. Climate change scenarios have addressed this demand by providing scientific insights on the possible pathways ahead to limit warming in line with the Paris climate goal. Despite the increased interest, the potential of climate change scenarios has not been fully unleashed, mostly due to a lack of an intermediary service that provides guidance and access to climate change scenarios. This perspective presents the concept of a climate change scenario service, its components, and a prototypical implementation to overcome this shortcoming aiming to make scenarios accessible to a broader audience of societal actors and decision makers. KW - climate change scenarios KW - climate change scenario services KW - climate services KW - co-production KW - visualization KW - capacity building KW - mitigation scenarios KW - adaptation scenarios KW - impact projections Y1 - 2021 U6 - https://doi.org/10.1016/j.oneear.2021.07.015 SN - 2590-3322 VL - 4 IS - 8 SP - 1074 EP - 1082 PB - Elsevier CY - Amsterdam ER - TY - JOUR A1 - Lessmann, Kai A1 - Kalkuhl, Matthias T1 - Climate finance intermediation BT - interest spread effects in a climate policy model JF - Journal of the Association of Environmental and Resource Economists N2 - Interest rates are central determinants of saving and investment decisions. Costly financial intermediation distorts these price signals by creating a spread between deposit and loan rates. This study investigates how bank spreads affect climate policy in its ambition to redirect capital. We identify various channels through which interest spreads affect carbon emissions in a dynamic general equilibrium model. Interest rate spreads increase abatement costs due to the higher relative price for capital-intensive carbon-free energy, but they also tend to reduce emissions due to lower overall economic growth. For the global average interest rate spread of 5.1 percentage points, global warming increases by 0.2°C compared to the frictionless economy. For a given temperature target to be achieved, interest rate spreads necessitate substantially higher carbon taxes. When spreads arise from imperfect competition in the intermediation sector, the associated welfare costs can be reduced by clean energy subsidies or even eliminated by economy-wide investment subsidies. KW - financial friction KW - banking KW - greenhouse gas mitigation KW - investment subsidy Y1 - 2023 U6 - https://doi.org/10.1086/725920 SN - 2333-5955 SN - 2333-5963 VL - 11 IS - 1 SP - 213 EP - 251 PB - University of Chicago Press CY - Chicago, IL ER - TY - JOUR A1 - Malik, Aman A1 - Bertram, Christoph A1 - Kriegler, Elmar A1 - Luderer, Gunnar T1 - Climate policy accelerates structural changes in energy employment JF - Energy policy N2 - The employment implications of decarbonizing the energy sector have received far less attention than the technology dimension of the transition, although being of critical importance to policymakers. In this work, we adapt a methodology based on employment factors to project future changes in quantity and composition of direct energy supply jobs for two scenarios - (1) relatively weak emissions reductions as pledged in the nationally determined contributions (NDC) and (2) stringent reductions compatible with the 1.5 °C target. We find that in the near-term the 1.5°C-compatible scenario results in a net increase in jobs through gains in solar and wind jobs in construction, installation, and manufacturing, despite significant losses in coal fuel supply; eventually leading to a peak in total direct energy jobs in 2025. In the long run, improvements in labour productivity lead to a decrease of total direct energy employment compared to today, however, total jobs are still higher in a 1.5 °C than in an NDC scenario. Operation and maintenance jobs dominate future jobs, replacing fuel supply jobs. The results point to the need for active policies aimed at retraining, both inside and outside the renewable energy sector, to complement climate policies within the concept of a “just transition”. KW - energy supply KW - employment KW - just transition KW - political feasibility KW - mitigation pathways KW - integrated assessment models Y1 - 2021 U6 - https://doi.org/10.1016/j.enpol.2021.112642 SN - 0301-4215 VL - 159 PB - Elsevier Science CY - Amsterdam ER - TY - JOUR A1 - Diluiso, Francesca A1 - Walk, Paula A1 - Manych, Niccolo A1 - Cerutti, Nicola A1 - Chipiga, Vladislav A1 - Workman, Annabelle A1 - Ayas, Ceren A1 - Cui, Ryna Yiyun A1 - Cui, Diyang A1 - Song, Kaihui A1 - Banisch, Lucy A. A1 - Moretti, Nikolaj A1 - Callaghan, Max W. A1 - Clarke, Leon A1 - Creutzig, Felix A1 - Hilaire, Jerome A1 - Jotzo, Frank A1 - Kalkuhl, Matthias A1 - Lamb, William F. A1 - Löschel, Andreas A1 - Müller-Hansen, Finn A1 - Nemet, Gregory F. A1 - Oei, Pao-Yu A1 - Sovacool, Benjamin K. A1 - Steckel, Jan Christoph A1 - Thomas, Sebastian A1 - Wiseman, John A1 - Minx, Jan C. T1 - Coal transitions - part 1 BT - a systematic map and review of case study learnings from regional, national, and local coal phase-out experiences JF - Environmental research letters N2 - A rapid coal phase-out is needed to meet the goals of the Paris Agreement, but is hindered by serious challenges ranging from vested interests to the risks of social disruption. To understand how to organize a global coal phase-out, it is crucial to go beyond cost-effective climate mitigation scenarios and learn from the experience of previous coal transitions. Despite the relevance of the topic, evidence remains fragmented throughout different research fields, and not easily accessible. To address this gap, this paper provides a systematic map and comprehensive review of the literature on historical coal transitions. We use computer-assisted systematic mapping and review methods to chart and evaluate the available evidence on historical declines in coal production and consumption. We extracted a dataset of 278 case studies from 194 publications, covering coal transitions in 44 countries and ranging from the end of the 19th century until 2021. We find a relatively recent and rapidly expanding body of literature reflecting the growing importance of an early coal phase-out in scientific and political debates. Previous evidence has primarily focused on the United Kingdom, the United States, and Germany, while other countries that experienced large coal declines, like those in Eastern Europe, are strongly underrepresented. An increasing number of studies, mostly published in the last 5 years, has been focusing on China. Most of the countries successfully reducing coal dependency have undergone both demand-side and supply-side transitions. This supports the use of policy approaches targeting both demand and supply to achieve a complete coal phase-out. From a political economy perspective, our dataset highlights that most transitions are driven by rising production costs for coal, falling prices for alternative energies, or local environmental concerns, especially regarding air pollution. The main challenges for coal-dependent regions are structural change transformations, in particular for industry and labor. Rising unemployment is the most largely documented outcome in the sample. Policymakers at multiple levels are instrumental in facilitating coal transitions. They rely mainly on regulatory instruments to foster the transitions and compensation schemes or investment plans to deal with their transformative processes. Even though many models suggest that coal phase-outs are among the low-hanging fruits on the way to climate neutrality and meeting the international climate goals, our case studies analysis highlights the intricate political economy at work that needs to be addressed through well-designed and just policies. KW - climate change mitigation KW - coal transitions KW - evidence synthesis KW - political economy KW - systematic map Y1 - 2021 U6 - https://doi.org/10.1088/1748-9326/ac1b58 SN - 1748-9326 VL - 16 IS - 11 PB - Institute of Physics Publishing (IOP) CY - Bristol ER - TY - RPRT A1 - Andres, Maximilian A1 - Bruttel, Lisa T1 - Communicating Cartel Intentions T2 - CEPA Discussion Papers N2 - While the economic harm of cartels is caused by their price-increasing effect, sanctioning by courts rather targets at the underlying process of firms reaching a price-fixing agreement. This paper provides experimental evidence on the question whether such sanctioning meets the economic target, i.e., whether evidence of a collusive meeting of the firms and of the content of their communication reliably predicts subsequent prices. We find that already the mere mutual agreement to meet predicts a strong increase in prices. Conversely, express distancing from communication completely nullifies its otherwise price-increasing effect. Using machine learning, we show that communication only increases prices if it is very explicit about how the cartel plans to behave. T3 - CEPA Discussion Papers - 77 KW - cartel KW - collusion KW - communication KW - machine learning KW - experiment Y1 - 2024 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-638469 SN - 2628-653X IS - 77 ER - TY - JOUR A1 - Covi, Giovanni A1 - Eydam, Ulrich T1 - Correction to: End of the sovereign-bank doom loop in the European Union? BT - the Bank Recovery and Resolution Directive JF - Journal of evolutionary economics Y1 - 2018 U6 - https://doi.org/10.1007/s00191-018-0577-1 SN - 0936-9937 SN - 1432-1386 N1 - Correction to: https://doi.org/10.1007/s00191-018-0576-2 VL - 30 IS - 1 SP - 31 EP - 38 PB - Springer CY - New York ER - TY - JOUR A1 - Riahi, Keywan A1 - Bertram, Christoph A1 - Huppmann, Daniel A1 - Rogelj, Joeri A1 - Bosetti, Valentina A1 - Cabardos, Anique-Marie A1 - Deppermann, Andre A1 - Drouet, Laurent A1 - Frank, Stefan A1 - Fricko, Oliver A1 - Fujimori, Shinichiro A1 - Harmsen, Mathijs A1 - Hasegawa, Tomoko A1 - Krey, Volker A1 - Luderer, Gunnar A1 - Paroussos, Leonidas A1 - Schaeffer, Roberto A1 - Weitzel, Matthias A1 - van der Zwaan, Bob A1 - Vrontisi, Zoi A1 - Longa, Francesco Dalla A1 - Després, Jacques A1 - Fosse, Florian A1 - Fragkiadakis, Kostas A1 - Gusti, Mykola A1 - Humpenöder, Florian A1 - Keramidas, Kimon A1 - Kishimoto, Paul A1 - Kriegler, Elmar A1 - Meinshausen, Malte A1 - Nogueira, Larissa Pupo A1 - Oshiro, Ken A1 - Popp, Alexander A1 - Rochedo, Pedro R. R. A1 - Ünlü, Gamze A1 - van Ruijven, Bas A1 - Takakura, Junya A1 - Tavoni, Massimo A1 - van Vuuren, Detlef P. A1 - Zakeri, Behnam T1 - Cost and attainability of meeting stringent climate targets without overshoot JF - Nature climate change N2 - Global emissions scenarios play a critical role in the assessment of strategies to mitigate climate change. The current scenarios, however, are criticized because they feature strategies with pronounced overshoot of the global temperature goal, requiring a long-term repair phase to draw temperatures down again through net-negative emissions. Some impacts might not be reversible. Hence, we explore a new set of net-zero CO2 emissions scenarios with limited overshoot. We show that upfront investments are needed in the near term for limiting temperature overshoot but that these would bring long-term economic gains. Our study further identifies alternative configurations of net-zero CO2 emissions systems and the roles of different sectors and regions for balancing sources and sinks. Even without net-negative emissions, CO2 removal is important for accelerating near-term reductions and for providing an anthropogenic sink that can offset the residual emissions in sectors that are hard to abate. Y1 - 2021 U6 - https://doi.org/10.1038/s41558-021-01215-2 SN - 1758-678X SN - 1758-6798 VL - 11 IS - 12 SP - 1063 EP - 1069 PB - Nature Publishing Group CY - London ER - TY - JOUR A1 - Graeber, Daniel A1 - Kritikos, Alexander A1 - Seebauer, Johannes T1 - COVID-19 BT - a crisis of the female self-employed JF - Journal of population economics N2 - We investigate how the economic consequences of the pandemic and the government-mandated measures to contain its spread affect the self-employed — particularly women — in Germany. For our analysis, we use representative, real-time survey data in which respondents were asked about their situation during the COVID-19 pandemic. Our findings indicate that among the self-employed, who generally face a higher likelihood of income losses due to COVID-19 than employees, women are about one-third more likely to experience income losses than their male counterparts. We do not find a comparable gender gap among employees. Our results further suggest that the gender gap among the self-employed is largely explained by the fact that women disproportionately work in industries that are more severely affected by the COVID-19 pandemic. Our analysis of potential mechanisms reveals that women are significantly more likely to be impacted by government-imposed restrictions, e.g., the regulation of opening hours. We conclude that future policy measures intending to mitigate the consequences of such shocks should account for this considerable variation in economic hardship. KW - self-employed KW - COVID-19 KW - income KW - gender KW - representative real-time survey data KW - decomposition methods Y1 - 2021 U6 - https://doi.org/10.1007/s00148-021-00849-y SN - 0933-1433 SN - 1432-1475 VL - 34 IS - 4 SP - 1141 EP - 1187 PB - Springer CY - Berlin ER - TY - RPRT A1 - Graeber, Daniel A1 - Kritikos, Alexander A1 - Seebauer, Johannes T1 - COVID-19: a crisis of the female self-employed T2 - CEPA Discussion Papers N2 - We investigate how the economic consequences of the pandemic, and of the government-mandated measures to contain its spread, affect the self-employed – particularly women – in Germany. For our analysis, we use representative, real-time survey data in which respondents were asked about their situation during the COVID-19 pandemic. Our findings indicate that among the self-employed, who generally face a higher likelihood of income losses due to COVID-19 than employees, women are 35% more likely to experience income losses than their male counterparts. Conversely, we do not find a comparable gender gap among employees. Our results further suggest that the gender gap among the self-employed is largely explained by the fact that women disproportionately work in industries that are more severely affected by the COVID-19 pandemic. Our analysis of potential mechanisms reveals that women are significantly more likely to be impacted by government-imposed restrictions, i.e. the regulation of opening hours. We conclude that future policy measures intending to mitigate the consequences of such shocks should account for this considerable variation in economic hardship. T3 - CEPA Discussion Papers - 27 KW - self-employed KW - COVID-19 KW - income KW - gender KW - representative real-time survey data KW - decomposition methods Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-498108 SN - 2628-653X IS - 27 ER - TY - JOUR A1 - Edenhofer, Ottmar A1 - Kalkuhl, Matthias A1 - Ockenfels, Axel T1 - Das Klimaschutzprogramm der Bundesregierung BT - eine Wende der deutschen Klimapolitik? JF - Perspektiven der Wirtschaftspolitik N2 - Das Klimaschutzgesetz hat einen Paradigmenwechsel eingeleitet: den Einstieg in eine CO2-Bepreisung als künftiges Leitinstrument der Klimapolitik. Auf den ersten Blick ist der CO2-Preis unter einer Fülle von Fördermaßnahmen und ordnungsrechtlichen Regelungen verschüttet, deren Wirksamkeit und Kosten höchst unsicher sind. Der CO2-Preis ist aber so angelegt, dass er langfristig das dominante Instrument einer europäisch harmonisierten Klimapolitik werden kann. Der angedeutete Paradigmenwechsel der deutschen Klimapolitik öffnet damit die Tür, die europäische und internationale Kooperation zu stärken. Dazu ist es aber notwendig, neben der europäischen auch die globale Klimapolitik neu auszurichten. Auch dort sollten sich die Verhandlungen statt auf nationale Mengenziele auf CO2-Preise konzentrieren. Die erforderliche Kooperation wird möglich, wenn die Regierungen Transferzahlungen strategisch und reziprok nutzen. So könnte die Effektivität der Klimapolitik erhöht werden und es ließen sich die entstehenden Verteilungskonflikte entschärfen. KW - Klimaschutzgesetz KW - CO2-Preis KW - Emissionshandel KW - internationale Kooperation KW - Klimawandel KW - Klimapolitik KW - Deutschland KW - EU Y1 - 2020 U6 - https://doi.org/10.1515/pwp-2020-0001 SN - 1465-6493 SN - 1468-2516 VL - 21 IS - 1 SP - 4 EP - 18 PB - De Gruyter CY - Berlin ER - TY - JOUR A1 - Kotz, Maximilian A1 - Wenz, Leonie A1 - Stechemesser, Annika A1 - Kalkuhl, Matthias A1 - Levermann, Anders T1 - Day-to-day temperature variability reduces economic growth JF - Nature climate change N2 - Elevated annual average temperature has been found to impact macro-economic growth. However, various fundamental elements of the economy are affected by deviations of daily temperature from seasonal expectations which are not well reflected in annual averages. Here we show that increases in seasonally adjusted day-to-day temperature variability reduce macro-economic growth independent of and in addition to changes in annual average temperature. Combining observed day-to-day temperature variability with subnational economic data for 1,537 regions worldwide over 40 years in fixed-effects panel models, we find that an extra degree of variability results in a five percentage-point reduction in regional growth rates on average. The impact of day-to-day variability is modulated by seasonal temperature difference and income, resulting in highest vulnerability in low-latitude, low-income regions (12 percentage-point reduction). These findings illuminate a new, global-impact channel in the climate–economy relationship that demands a more comprehensive assessment in both climate and integrated assessment models. KW - Climate change KW - Climate-change impacts KW - Economics KW - Environmental economics KW - Environmental impact Y1 - 2021 U6 - https://doi.org/10.1038/s41558-020-00985-5 SN - 1758-678X SN - 1758-6798 VL - 11 IS - 4 SP - 319 EP - 325 PB - Nature Publishing Group CY - London ER - TY - JOUR A1 - Caliendo, Marco A1 - Tübbicke, Stefan T1 - Der Gründungszuschuss für Arbeitslose nach der Reform 2011 BT - ein Erfolg wie seine Vorgänger JF - IAB-Kurzbericht : aktuelle Analysen aus dem Institut für Arbeitsmarkt- und Berufsforschung N2 - Mit der Reform des Gründungszuschusses im Jahr 2011 wurden die Rahmenbedingungen der Gründungsförderung für Arbeitslose im Sozialgesetzbuch III umfassend reformiert und die Förderzahlen reduzierten sich drastisch. Insgesamt ist das Arbeitsmarktinstrument weiterhin ein Erfolg: Die meisten Geförderten sind auch knapp 3,5 Jahre nach der Gründung noch selbstständig und etwa ein Drittel von ihnen hat mindestens einen Beschäftigen. Von denjenigen, die ihre Selbstständigkeit inzwischen beendet haben, sind die meisten sozialversicherungspflichtig beschäftigt. Damit haben Geförderte eine deutlich höhere Beschäftigungsquote als vergleichbare Personen ohne diese Förderung. Auch ihre monatlichen Nettoverdienste sowie ihre Jobzufriedenheit sind höher. Verbesserungspotenzial gibt es allerdings bei der sozialen Absicherung: Geförderte zahlen seltener in eine Rentenversicherung oder in die Arbeitslosenversicherung ein und sind mit ihrer sozialen Absicherung unzufriedener als vergleichbare Personen. Y1 - 2021 UR - https://doku.iab.de/kurzber/2021/kb2021-28.pdf SN - 0942-167X VL - 28 PB - IAB CY - Nürnberg ER - TY - RPRT A1 - Caliendo, Marco A1 - Tübbicke, Stefan T1 - Design and Effectiveness of Start-Up Subsidies BT - Evidence from a Policy Reform in Germany T2 - CEPA Discussion Papers N2 - While a growing body of literature finds positive impacts of Start-Up Subsidies (SUS) on labor market outcomes of participants, little is known about how the design of these programs shapes their effectiveness and hence how to improve policy. As experimental variation in program design is unavailable, we exploit the 2011 reform of the current German SUS program for the unemployed which strengthened case-workers’ discretionary power, increased entry requirements and reduced monetary support. We estimate the impact of the reform on the program’s effectiveness using samples of participants and non-participants from before and after the reform. To control for time-constant unobserved heterogeneity as well as differential selection patterns based on observable characteristics over time, we combine Difference-in-Differences with inverse probability weighting using covariate balancing propensity scores. Holding participants’ observed characteristics as well as macroeconomic conditions constant, the results suggest that the reform was successful in raising employment effects on average. As these findings may be contaminated by changes in selection patterns based on unobserved characteristics, we assess our results using simulation-based sensitivity analyses and find that our estimates are highly robust to changes in unobserved characteristics. Hence, the reform most likely had a positive impact on the effectiveness of the program, suggesting that increasing entry requirements and reducing support in-creased the program’s impacts while reducing the cost per participant. T3 - CEPA Discussion Papers - 30 KW - Start-Up Subsidies KW - Institutions KW - Policy Reform KW - Difference-in-Differences Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-500056 SN - 2628-653X IS - 30 ER - TY - JOUR A1 - Caliendo, Marco A1 - Wittbrodt, Linda T1 - Did the minimum wage reduce the gender wage gap in Germany? JF - Labour economics N2 - In many countries, women are over-represented among low-wage employees, which is why a wage floor could benefit them particularly. Following this notion, we analyse the impact of the German minimum wage introduction in 2015 on the gender wage gap. Germany poses an interesting case study in this context, since it has a rather high gender wage gap and set the minimum wage at a relatively high level, affecting more than four million employees. Based on individual data from the Structure of Earnings Survey, containing information for over one million employees working in 60,000 firms, we use a difference-in-difference framework that exploits regional differences in the bite of the minimum wage. We find a significant negative effect of the minimum wage on the regional gender wage gap. Between 2014 and 2018, the gap at the 10th percentile of the wage distribution was reduced by 4.6 percentage points (or 32%) in regions that were strongly affected by the minimum wage compared to less affected regions. For the gap at the 25th percentile, the effect still amounted to 18%, while for the mean it was smaller (11%) and not particularly robust. We thus find that the minimum wage can indeed reduce gender wage disparities. While the effect is highest for the low-paid, it also reaches up into higher parts of the wage distribution. KW - minimum wage KW - gender wage gap KW - regional bite Y1 - 2022 U6 - https://doi.org/10.1016/j.labeco.2022.102228 SN - 09275371 VL - 78 PB - Elsevier CY - Amsterdam ER - TY - RPRT A1 - Caliendo, Marco A1 - Wittbrodt, Linda T1 - Did the Minimum Wage Reduce the Gender Wage Gap in Germany? T2 - CEPA Discussion Papers N2 - In many countries, women are over-represented among low-wage employees, which is why a wage floor could benefit them particularly. Following this notion, we analyse the impact of the German minimum wage introduction in 2015 on the gender wage gap. Germany poses an interesting case study in this context, since it has a rather high gender wage gap and set the minimum wage at a relatively high level, affecting more than four million employees. Based on individual data from the Structure of Earnings Survey, containing information for over one million employees working in 60,000 firms, we use a difference-in- difference framework that exploits regional differences in the bite of the minimum wage. We find a significant negative effect of the minimum wage on the regional gender wage gap. Between 2014 and 2018, the gap at the 10th percentile of the wage distribution was reduced by 4.6 percentage points (or 32%) in regions that were strongly affected by the minimum wage compared to less affected regions. For the gap at the 25th percentile, the effect still amounted to -18%, while for the mean it was smaller (-11%) and not particularly robust. We thus find that the minimum wage can indeed reduce gender wage disparities. While the effect is highest for the low-paid, it also reaches up into higher parts of the wage distribution. T3 - CEPA Discussion Papers - 40 KW - Minimum Wage KW - Gender Wage Gap KW - Regional Bite Y1 - 2021 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-530464 SN - 2628-653X IS - 40 ER - TY - JOUR A1 - Sedova, Barbora A1 - Kalkuhl, Matthias A1 - Mendelsohn, Robert T1 - Distributional impacts of weather and climate in rural India JF - Economics of disasters and climate change N2 - Climate-related costs and benefits may not be evenly distributed across the population. We study distributional implications of seasonal weather and climate on within-country inequality in rural India. Utilizing a first difference approach, we find that the poor are more sensitive to weather variations than the non-poor. The poor respond more strongly to (seasonal) temperature changes: negatively in the (warm) spring season, more positively in the (cold) rabi season. Less precipitation is harmful to the poor in the monsoon kharif season and beneficial in the winter and spring seasons. We show that adverse weather aggravates inequality by reducing consumption of the poor farming households. Future global warming predicted under RCP8.5 is likely to exacerbate these effects, reducing consumption of poor farming households by one third until the year 2100. We also find inequality in consumption across seasons with higher consumption during the harvest and lower consumption during the sowing seasons. KW - climate change KW - weather KW - inequality KW - household analysis KW - India KW - econometrics Y1 - 2019 U6 - https://doi.org/10.1007/s41885-019-00051-1 SN - 2511-1280 SN - 2511-1299 VL - 4 IS - 1 SP - 5 EP - 44 PB - Springer CY - Cham ER - TY - JOUR A1 - Caliendo, Marco A1 - Rodríguez, Daniel T1 - Divergent thinking and post-launch entrepreneurial outcomes BT - non-linearities and the moderating role of experience JF - Small business economics N2 - Divergent thinking is the ability to produce numerous and diverse responses to questions or tasks, and it is used as a predictor of creative achievement. It plays a significant role in the business organization’s innovation process and the recognition of new business opportunities. Drawing upon the cumulative process model of creativity in entrepreneurship, we hypothesize that divergent thinking has a lasting effect on post-launch entrepreneurial outcomes related to innovation and growth, but that this relation might not always be linear. Additionally, we hypothesize that domain-specific experience has a moderating role in this relation. We test our hypotheses based on a representative longitudinal sample of 457 German business founders, which we observe up until 40 months after start-up. We find strong relative effects for innovation and growth outcomes. For survival, we find conclusive evidence for non-linearities in the effects of divergent thinking. Additionally, we show that such effects are moderated by the type of domain-specific experience that entrepreneurs gathered pre-launch, as it shapes the individual’s ideational abilities to fit into more sophisticated strategies regarding entrepreneurial creative achievement. Our findings have relevant policy implications in characterizing and identifying business start-ups with growth and innovation potential, allowing a more efficient allocation of public and private funds. Y1 - 2023 U6 - https://doi.org/10.1007/s11187-023-00828-5 SN - 0921-898X SN - 1573-0913 VL - 57 PB - Springer Science + Business Media B.V. CY - Dordrecht ER - TY - RPRT A1 - Caliendo, Marco A1 - Rodríguez Guio, Daniel Felipe T1 - Divergent thinking and post-launch entrepreneurial outcomes BT - non-linearities and the moderating role of experience T2 - CEPA Discussion Papers N2 - Divergent thinking is the ability to produce numerous and diverse responses to questions or tasks, and it is used as a predictor of creative achievement. It plays a significant role in the business organization’s innovation process and the recognition of new business opportunities. Drawing upon the cumulative process model of creativity in entrepreneurship, we hypothesize that divergent thinking has a lasting effect on post-launch entrepreneurial outcomes related to innovation and growth, but that this relation might not always be linear. Additionally, we hypothesize that domain-specific experience has a moderating role in this relation. We test our hypotheses based on a representative longitudinal sample of 457 German business founders, which we observe up until 40 months after start-up. We find strong relative effects for innovation and growth outcomes. For survival we find conclusive evidence for non-linearities in the effects of divergent thinking. Additionally, we show that such effects are moderated by the type of domain-specific experience that entrepreneurs gathered pre-launch, as it shapes the individual’s ideational abilities to fit into more sophisticated strategies regarding entrepreneurial creative achievement. Our findings have relevant policy implications in characterizing and identifying business start-ups with growth and innovation potential, allowing a more efficient allocation of public and private funds. T3 - CEPA Discussion Papers - 68 KW - divergent thinking KW - entrepreneurial performance KW - survival KW - business expansion KW - innovation Y1 - 2023 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-607408 SN - 2628-653X IS - 68 ER - TY - RPRT A1 - Margaryan, Shushanik A1 - Saniter, Nils A1 - Schumann, Mathias A1 - Siedler, Thomas T1 - Do internships pay off? BT - the effects of student internships on earnings T2 - Journal of human resources N2 - We study the causal effect of student internship experience in firms on earnings later in life. We use mandatory firm internships at German universities as an instrument for doing a firm internship while attending university. Employing longitudinal data from graduate surveys, we find positive and significant earnings returns of about 6 percent in both ordinary least squares (OLS) and instrumental variables (IV) regressions. The positive returns are particularly pronounced for individuals and areas of study that are characterized by a weak labor market orientation. The empirical findings show that graduates who completed a firm internship face a lower risk of unemployment during the first year of their careers, suggesting a smoother transition to the labor market. Y1 - 2022 U6 - https://doi.org/10.3368/jhr.57.4.0418-9460R2 SN - 0022-166X SN - 1548-8004 VL - 57 IS - 4 SP - 1242 EP - 1275 PB - University of Wisconsin Press CY - Madison ER - TY - JOUR A1 - Paganelli, Maria Pia A1 - Schumacher, Reinhard T1 - Do not take peace for granted BT - Adam Smith’s warning on the relation between commerce and war JF - Cambridge journal of economics N2 - Is trade a promoter of peace? Adam Smith, one of the earliest defenders of trade, worries that commerce may instigate some perverse incentives, encouraging wars. The wealth that commerce generates decreases the relative cost of wars, increases the ability to finance wars through debts, which decreases their perceived cost, and increases the willingness of commercial interests to use wars to extend their markets, increasing the number and prolonging the length of wars. Smith, therefore, cannot assume that trade would yield a peaceful world. While defending and promoting trade, Smith warns us not to take peace for granted. KW - Commercial peace KW - Adam Smith KW - Doux commerce KW - Perceived cost versus actual cost of war KW - Special interests Y1 - 2018 U6 - https://doi.org/10.1093/cje/bey040 SN - 0309-166X SN - 1464-3545 VL - 43 IS - 3 SP - 785 EP - 797 PB - Oxford Univ. Press CY - Oxford ER - TY - JOUR A1 - Caliendo, Marco A1 - Tübbicke, Stefan T1 - Do start-up subsidies for the unemployed affect participants’ well-being? BT - a rigorous look at (un-)intended consequences of labor market policies JF - Evaluation review N2 - Background: The literature on start-up subsidies (SUS) for the unemployed finds positive effects on objective outcome measures such as employment or income. However, little is known about effects on subjective well-being of participants. Knowledge about this is especially important because subsidizing the transition into self-employment may have unintended adverse effects on participants’ well-being due to its risky nature and lower social security protection, especially in the long run. Objective: We study the long-term effects of SUS on subjective outcome indicators of well-being, as measured by the participants’ satisfaction in different domains. This extends previous analyses of the current German SUS program (“Gründungszuschuss”) that focused on objective outcomes—such as employment and income—and allows us to make a more complete judgment about the overall effects of SUS at the individual level. Research design: Having access to linked administrative-survey data providing us with rich information on pretreatment characteristics, we base our analysis on the conditional independence assumption and use propensity score matching to estimate causal effects within the potential outcomes framework. We perform several sensitivity analyses to inspect the robustness of our findings. Results: We find long-term positive effects on job satisfaction but negative effects on individuals’ satisfaction with their social security situation. Supplementary findings suggest that the negative effect on satisfaction with social security may be driven by negative effects on unemployment and retirement insurance coverage. Our heterogeneity analysis reveals substantial variation in effects across gender, age groups, and skill levels. Estimates are highly robust. Y1 - 2020 U6 - https://doi.org/10.1177/0193841X20927237 SN - 1552-3926 SN - 0193-841X VL - 46 IS - 5 SP - 517 EP - 554 PB - Sage Publications CY - Thousand Oaks ER - TY - RPRT A1 - Matzat, Johannes A1 - Schmeißer, Aiko T1 - Do unions shape political ideologies at work? T2 - CESifo Working Paper N2 - Labor unions’ greatest potential for political influence likely arises from their direct connection to millions of individuals at the workplace. There, they may change the ideological positions of both unionizing workers and their non-unionizing management. In this paper, we analyze the workplace-level impact of unionization on workers’ and managers’ political campaign contributions over the 1980-2016 period in the United States. To do so, we link establishment-level union election data with transaction-level campaign contributions to federal and local candidates. In a difference-in-differences design that we validate with regression discontinuity tests and a novel instrumental variables approach, we find that unionization leads to a leftward shift of campaign contributions. Unionization increases the support for Democrats relative to Republicans not only among workers but also among managers, which speaks against an increase in political cleavages between the two groups. We provide evidence that our results are not driven by compositional changes of the workforce and are weaker in states with Right-to-Work laws where unions can invest fewer resources in political activities. KW - labor unions KW - political ideology KW - campaign contributions KW - worker-manager relations Y1 - 2023 SN - 2364-1428 SN - 1617-9595 IS - 10301 PB - CESifo GmbH (Münchener Gesellschaft zur Förderung der Wirtschaftswissenschaft) CY - München ER - TY - RPRT A1 - Bruttel, Lisa Verena A1 - Petrishcheva, Vasilisa T1 - Does communication increase the precision of beliefs? T2 - CEPA Discussion Papers N2 - In this paper, we study one channel through which communication may facilitate cooperative behavior – belief precision. In a prisoner’s dilemma experiment, we show that communication not only makes individuals more optimistic that their partner will cooperate but also increases the precision of this belief, thereby reducing strategic uncertainty. To disentangle the shift in mean beliefs from the increase in precision, we elicit beliefs and precision in a two-stage procedure and in three situations: without communication, before communication, and after communication. We find that the precision of beliefs increases during communication. T3 - CEPA Discussion Papers - 74 KW - prisoner’s dilemma KW - communication KW - beliefs KW - strategic uncertainty KW - experiment Y1 - 2024 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-629367 SN - 2628-653X IS - 74 SP - 1 EP - 33 ER - TY - JOUR A1 - Margaryan, Shushanik A1 - Paul, Annemarie A1 - Siedler, Thomas T1 - Does education affect attitudes towards immigration? JF - Journal of human resources N2 - Using data from the German Socio-Economic Panel and exploiting the staggered implementation of a compulsory schooling reform in West Germany, this article finds that an additional year of schooling lowers the probability of being very concerned about immigration to Germany by around six percentage points (20 percent). Furthermore, our findings imply significant spillovers from maternal education to immigration attitudes of her offspring. While we find no evidence for returns to education within a range of labor market outcomes, higher social trust appears to be an important mechanism behind our findings. Y1 - 2021 U6 - https://doi.org/10.3368/jhr.56.2.0318-9372R1 SN - 0022-166X SN - 1548-8004 VL - 56 IS - 2 SP - 446 EP - 479 PB - University of Wisconsin Press CY - Madison ER - TY - RPRT A1 - Kritikos, Alexander A1 - Maliranta, Mika A1 - Nippala, Veera A1 - Nurmi, Satu T1 - Does gender of firm ownership matter? BT - Female entrepreneurs and the gender pay gap T2 - CEPA Discussion Papers N2 - We examine how the gender of business-owners is related to the wages paid to female relative to male employees working in their firms. Using Finnish register data and employing firm fixed effects, we find that the gender pay gap is – starting from a gender pay gap of 11 to 12 percent - two to three percentage-points lower for hourly wages in female-owned firms than in male-owned firms. Results are robust to how the wage is measured, as well as to various further robustness checks. More importantly, we find substantial differences between industries. While, for instance, in the manufacturing sector, the gender of the owner plays no role for the gender pay gap, in several service sector industries, like ICT or business services, no or a negligible gender pay gap can be found, but only when firms are led by female business owners. Businesses in male ownership maintain a gender pay gap of around 10 percent also in the latter industries. With increasing firm size, the influence of the gender of the owner, however, fades. In large firms, it seems that others – firm managers – determine wages and no differences in the pay gap are observed between male- and female-owned firms. T3 - CEPA Discussion Papers - 76 KW - entrepreneurship KW - gender pay gap KW - discrimination KW - linked employer-employee data Y1 - 2024 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-636194 SN - 2628-653X IS - 76 SP - 1 EP - 39 ER - TY - JOUR A1 - Wenz, Leonie A1 - Carr, Robert Devon A1 - Kögel, Noah A1 - Kotz, Maximilian A1 - Kalkuhl, Matthias T1 - DOSE - global data set of reported sub-national economic output JF - Scientific data N2 - Many phenomena of high relevance for economic development such as human capital, geography and climate vary considerably within countries as well as between them. Yet, global data sets of economic output are typically available at the national level only, thereby limiting the accuracy and precision of insights gained through empirical analyses. Recent work has used interpolation and downscaling to yield estimates of sub-national economic output at a global scale, but respective data sets based on official, reported values only are lacking. We here present DOSE — the MCC-PIK Database Of Sub-national Economic Output. DOSE contains harmonised data on reported economic output from 1,661 sub-national regions across 83 countries from 1960 to 2020. To avoid interpolation, values are assembled from numerous statistical agencies, yearbooks and the literature and harmonised for both aggregate and sectoral output. Moreover, we provide temporally- and spatially-consistent data for regional boundaries, enabling matching with geo-spatial data such as climate observations. DOSE provides the opportunity for detailed analyses of economic development at the subnational level, consistent with reported values. KW - economics KW - environmental health KW - geography Y1 - 2023 U6 - https://doi.org/10.1038/s41597-023-02323-8 SN - 2052-4463 VL - 10 IS - 1 SP - 1 EP - 17 PB - Nature Publishing Group CY - London ER - TY - RPRT A1 - Caliendo, Marco A1 - Hennecke, Juliane T1 - Drinking is Different! BT - Examining the Role of Locus of Control for Alcohol Consumption T2 - CEPA Discussion Papers N2 - Unhealthy behavior can be extremely costly from a micro- and macroeconomic perspective and exploring the determinants of such behavior is highly important from an economist’s point of view. We examine whether locus of control (LOC) can explain alcohol consumption as an important domain of health behavior. LOC measures how much an individual believes that she is in control of the consequences of her own actions for her life’s future outcomes. While earlier literature showed that an increasing internal LOC is associated with increased health-conscious behavior in domains such as smoking, exercise or diets, we find that drinking seems to be different. Using German panel data from the Socio-Economic Panel (SOEP) we find a significant positive effect of having an internal LOC on the probability of moderate and regular drinking. We suggest and discuss two likely mechanisms for this relationship and find interesting gender differences. While social investments play an important role for both men and women, risk perceptions are especially relevant for men. T3 - CEPA Discussion Papers - 18 KW - locus of control KW - alcohol consumption KW - health behavior KW - risk perception KW - social investment Y1 - 2020 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-469790 SN - 2628-653X IS - 18 ER - TY - JOUR A1 - Caliendo, Marco A1 - Hennecke, Juliane T1 - Drinking is different! BT - examining the role of locus of control for alcohol consumption JF - Empirical economics N2 - Locus of control (LOC) measures how much an individual believes in the causal relationship between her own actions and her life’s outcomes. While earlier literature has shown that an increasing internal LOC is associated with increased health-conscious behavior in domains such as smoking, exercise or diets, we find that drinking seems to be different. Using very informative German panel data, we extend and generalize previous findings and find a significant positive association between having an internal LOC and the probability of occasional and regular drinking for men and women. An increase in an individual’s LOC by one standard deviation increases the probability of occasional or regular drinking on average by 3.4% for men and 6.9% for women. Using a decomposition method, we show that roughly a quarter of this association can be explained by differences in the social activities between internal and external individuals. KW - locus of control KW - alcohol consumption KW - health behavior KW - risk perception KW - social activity Y1 - 2022 U6 - https://doi.org/10.1007/s00181-022-02219-3 SN - 0377-7332 SN - 1435-8921 VL - 63 IS - 5 SP - 2785 EP - 2815 PB - Springer CY - Berlin ER - TY - JOUR A1 - Schultes, Anselm A1 - Piontek, Franziska A1 - Soergel, Bjoern A1 - Rogelj, Joeri A1 - Baumstark, Lavinia A1 - Kriegler, Elmar A1 - Edenhofer, Ottmar A1 - Luderer, Gunnar T1 - Economic damages from on-going climate change imply deeper near-term emission cuts JF - Environmental research letters N2 - Pathways toward limiting global warming to well below 2 ∘C, as used by the IPCC in the Fifth Assessment Report, do not consider the climate impacts already occurring below 2 ∘C. Here we show that accounting for such damages significantly increases the near-term ambition of transformation pathways. We use econometric estimates of climate damages on GDP growth and explicitly model the uncertainty in the persistence time of damages. The Integrated Assessment Model we use includes the climate system and mitigation technology detail required to derive near-term policies. We find an optimal carbon price of $115 per tonne of CO2 in 2030. The long-term persistence of damages, while highly uncertain, is a main driver of the near-term carbon price. Accounting for damages on economic growth increases the gap between the currently pledged nationally determined contributions and the welfare-optimal 2030 emissions by two thirds, compared to pathways considering the 2 ∘C limit only. KW - climate change KW - climate mitigation KW - climate impacts KW - integrated assessment Y1 - 2021 U6 - https://doi.org/10.1088/1748-9326/ac27ce SN - 1748-9326 VL - 16 IS - 10 PB - IOP Publishing CY - Bristol ER - TY - JOUR A1 - Belitski, Maksim A1 - Guenther, Christina A1 - Kritikos, Alexander A1 - Thurik, Adriaan R. T1 - Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses JF - Small business economics N2 - The existential threat to small businesses, based on their crucial role in the economy, is behind the plethora of scholarly studies in 2020, the first year of the COVID-19 pandemic. Examining the 15 contributions of the special issue on the “Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses,” the paper comprises four parts: a systematic review of the literature on the effect on entrepreneurship and small businesses; a discussion of four literature strands based on this review; an overview of the contributions in this special issue; and some ideas for post-pandemic economic research. KW - small businesses KW - entrepreneurs KW - COVID-19 pandemic KW - economic effects Y1 - 2021 U6 - https://doi.org/10.1007/s11187-021-00544-y SN - 0921-898X SN - 1573-0913 VL - 58 IS - 2 SP - 593 EP - 609 PB - Springer Science + Business Media B.V. CY - Dordrecht ER - TY - JOUR A1 - Piontek, Franziska A1 - Kalkuhl, Matthias A1 - Kriegler, Elmar A1 - Schultes, Anselm A1 - Leimbach, Marian A1 - Edenhofer, Ottmar A1 - Bauer, Nico T1 - Economic Growth Effects of Alternative Climate Change Impact Channels in Economic Modeling JF - Environmental & resource economics : the official journal of the European Association of Environmental and Resource Economists N2 - 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. KW - Climate change KW - Damages KW - Economic growth KW - Impact channels KW - Production factors KW - Persistence Y1 - 2018 U6 - https://doi.org/10.1007/s10640-018-00306-7 SN - 0924-6460 SN - 1573-1502 VL - 73 IS - 4 SP - 1357 EP - 1385 PB - Springer CY - Dordrecht ER - TY - RPRT A1 - Steckel, Jan Christoph A1 - Missbach, Leonard A1 - Ohlendorf, Nils A1 - Feindt, Simon A1 - Kalkuhl, Matthias T1 - Effects of the energy price crisis on European households BT - socio-political challenges and policy options Y1 - 2022 UR - https://www.mcc-berlin.net/fileadmin/data/C18_MCC_Publications/2022_MCC_Effects_of_the_energy_price_crisis_on_European_households.pdf PB - Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH CY - Berlin ER -