@techreport{LessmannGrunerKalkuhletal.2024,
  type      = {Working Paper},
  author    = {Lessmann, Kai and Gruner, Friedemann and Kalkuhl, Matthias and Edenhofer, Ottmar},
  title     = {Emissions Trading with Clean-up Certificates},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {79},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-64136},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-641368},
  pages     = {35},
  year      = {2024},
  abstract  = {We analyze how conventional emissions trading schemes (ETS) can be modified by introducing "clean-up certificates" to allow for a phase of net-negative emissions. Clean-up certificates bundle the permission to emit CO2 with the obligation for its removal. We show that demand for such certificates is determined by cost-saving technological progress, the discount rate and the length of the compliance period. Introducing extra clean-up certificates into an existing ETS reduces near-term carbon prices and mitigation efforts. In contrast, substituting ETS allowances with clean-up certificates reduces cumulative emissions without depressing carbon prices or mitigation in the near term. We calibrate our model to the EU ETS and identify reforms where simultaneously (i) ambition levels rise, (ii) climate damages fall, (iii) revenues from carbon prices rise and (iv) carbon prices and aggregate mitigation cost fall. For reducing climate damages, roughly half of the issued clean-up certificates should replace conventional ETS allowances. In the context of the EU ETS, a European Carbon Central Bank could manage the implementation of cleanup certificates and could serve as an enforcement mechanism.},
  language  = {en}
}
@techreport{BorckMulder2024,
  type      = {Working Paper},
  author    = {Borck, Rainald and Mulder, Peter},
  title     = {Energy policies and pollution in two developing country cities},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {78},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-63847},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-638472},
  pages     = {37},
  year      = {2024},
  abstract  = {We study the effect of energy and transport policies on pollution in two developing country cities. We use a quantitative equilibrium model with choice of housing, energy use, residential location, transport mode, and energy technology. Pollution comes from commuting and residential energy use. The model parameters are calibrated to replicate key variables for two developing country cities, Maputo, Mozambique, and Yogyakarta, Indonesia. In the counterfactual simulations, we study how various transport and energy policies affect equilibrium pollution. Policies may be induce rebound effects from increasing residential energy use or switching to high emission modes or locations. In general, these rebound effects tend to be largest for subsidies to public transport or modern residential energy technology.},
  language  = {en}
}
@techreport{KritikosMalirantaNippalaetal.2024,
  type      = {Working Paper},
  author    = {Kritikos, Alexander and Maliranta, Mika and Nippala, Veera and Nurmi, Satu},
  title     = {Does gender of firm ownership matter?},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {76},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-63619},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-636194},
  pages     = {1 -- 39},
  year      = {2024},
  abstract  = {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.},
  language  = {en}
}
@techreport{BruttelEisenkopfNithammer2024,
  type      = {Working Paper},
  author    = {Bruttel, Lisa Verena and Eisenkopf, Gerald and Nithammer, Juri},
  title     = {Pre-election communication in public good games with endogenous leaders},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {73},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-62395},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-623952},
  pages     = {28},
  year      = {2024},
  abstract  = {Leadership plays an important role for the efficient and fair solution of social dilemmas but the effectiveness of a leader can vary substantially. Two main factors of leadership impact are the ability to induce high contributions by all group members and the (expected) fair use of power. Participants in our experiment decide about contributions to a public good. After all contributions are made, the leader can choose how much of the joint earnings to assign to herself; the remainder is distributed equally among the followers. Using machine learning techniques, we study whether the content of initial open statements by the group members predicts their behavior as a leader and whether groups are able to identify such clues and endogenously appoint a "good" leader to solve the dilemma. We find that leaders who promise fairness are more likely to behave fairly, and that followers appoint as leaders those who write more explicitly about fairness and efficiency. However, in their contribution decision, followers focus on the leader's first-move contribution and place less importance on the content of the leader's statements.},
  language  = {en}
}
@techreport{EstrinKhavulKritikosetal.2024,
  type      = {Working Paper},
  author    = {Estrin, Saul and Khavul, Susanna and Kritikos, Alexander and L{\"o}her, Jonas},
  title     = {Access to digital finance},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {72},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-62326},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-623261},
  pages     = {27},
  year      = {2024},
  abstract  = {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.},
  language  = {en}
}
@techreport{AmorosoHerrmannKritikos2023,
  type      = {Working Paper},
  author    = {Amoroso, Sara and Herrmann, Benedikt and Kritikos, Alexander},
  title     = {The Role of Regulation and Regional Government Quality for High Growth Firms},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {71},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-61277},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-612771},
  pages     = {32},
  year      = {2023},
  abstract  = {High growth firms (HGFs) are important for job creation and considered to be precursors of economic growth. We investigate how formal institutions, like product- and labor-market regulations, as well as the quality of regional governments that implement these regulations, affect HGF development across European regions. Using data from Eurostat, OECD, WEF, and Gothenburg University, we show that both regulatory stringency and the quality of the regional government influence the regional shares of HGFs. More importantly, we find that the effect of labor- and product-market regulations ultimately depends on the quality of regional governments: in regions with high quality of government, the share of HGFs is neither affected by the level of product market regulation, nor by more or less flexibility in hiring and firing practices. Our findings contribute to the debate on the effects of regulations by showing that regulations are not, per se, "good, bad, and ugly", rather their impact depends on the efficiency of regional governments. Our paper offers important building blocks to develop tailored policy measures that may influence the development of HGFs in a region.},
  language  = {en}
}
@techreport{GraeberHilbertKoenig2023,
  type      = {Working Paper},
  author    = {Graeber, Daniel and Hilbert, Viola and K{\"o}nig, Johannes},
  title     = {Inequality of Opportunity in Wealth},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {69},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-60967},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-609673},
  pages     = {54},
  year      = {2023},
  abstract  = {While inequality of opportunity (IOp) in earnings is well studied, the literature on IOp in individual net wealth is scarce to non-existent. This is problematic because both theoretical and empirical evidence show that the position in the wealth and income distribution can significantly diverge.We measure ex-ante IOp in net wealth for Germany using data from the Socio-Economic Panel (SOEP). Ex-ante IOp is defined as the contribution of circumstances to the inequality in net wealth before effort is exerted. The SOEP allows for a direct mapping from individual circumstances to individual net wealth and for a detailed decomposition of net wealth inequality into a variety of circumstances; among them childhood background, intergenerational transfers, and regional characteristics. The ratio of inequality of opportunity to total inequality is stable from 2002 to 2019. This is in sharp contrast to labor earnings, where ex-ante IOp is declining over time. Our estimates suggest that about 62\% of the inequality in net wealth is due to circumstances. The most important circumstances are intergenerational transfers, parental occupation, and the region of birth. In contrast, gender and individuals' own education are the most important circumstances for earnings.},
  language  = {en}
}
@techreport{KalkuhlFranksGruneretal.2023,
  type      = {Working Paper},
  author    = {Kalkuhl, Matthias and Franks, Max and Gruner, Friedemann and Lessmann, Kai and Edenhofer, Ottmar},
  title     = {Pigou's Advice and Sisyphus' Warning},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {62},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-57588},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-575882},
  pages     = {66},
  year      = {2023},
  abstract  = {Carbon dioxide removal from the atmosphere is becoming an important option to achieve net zero climate targets. This paper develops a welfare and public economics perspective on optimal policies for carbon removal and storage in non-permanent sinks like forests, soil, oceans, wood products or chemical products. We derive a new metric for the valuation of non-permanent carbon storage, the social cost of carbon removal (SCC-R), which embeds also the conventional social cost of carbon emissions. We show that the contribution of CDR is to create new carbon sinks that should be used to reduce transition costs, even if the stored carbon is released to the atmosphere eventually. Importantly, CDR does not raise the ambition of optimal temperature levels unless initial atmospheric carbon stocks are excessively high. For high initial atmospheric carbon stocks, CDR allows to reduce the optimal temperature below initial levels. Finally, we characterize three different policy regimes that ensure an optimal deployment of carbon removal: downstream carbon pricing, upstream carbon pricing, and carbon storage pricing. The policy regimes differ in their informational and institutional requirements regarding monitoring, liability and financing.},
  language  = {en}
}
@techreport{BorckSchrauth2022,
  type      = {Working Paper},
  author    = {Borck, Rainald and Schrauth, Philipp},
  title     = {Urban pollution},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {60},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-57204},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-572049},
  pages     = {48},
  year      = {2022},
  abstract  = {We use worldwide satellite data to analyse how population size and density affect urban pollution. We find that density significantly increases pollution exposure. Looking only at urban areas, we find that population size affects exposure more than density. Moreover, the effect is driven mostly by population commuting to core cities rather than the core city population itself. We analyse heterogeneity by geography and income levels. By and large, the influence of population on pollution is greatest in Asia and middle-income countries. A counterfactual simulation shows that PM2.5 exposure would fall by up to 36\% and NO2 exposure up to 53\% if within countries population size were equalized across all cities.},
  language  = {en}
}
@techreport{CaliendoKritikosStier2022,
  type      = {Working Paper},
  author    = {Caliendo, Marco and Kritikos, Alexander and Stier, Claudia},
  title     = {The Influence of Start-up Motivation on Entrepreneurial Performance},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {59},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-57115},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-571152},
  pages     = {43},
  year      = {2022},
  abstract  = {Predicting entrepreneurial development based on individual and business-related characteristics is a key objective of entrepreneurship research. In this context, we investigate whether the motives of becoming an entrepreneur influence the subsequent entrepreneurial development. In our analysis, we examine a broad range of business outcomes including survival and income, as well as job creation, expansion and innovation activities for up to 40 months after business formation. Using self-determination theory as conceptual background, we aggregate the start-up motives into a continuous motivational index. We show - based on a unique dataset of German start-ups from unemployment and non-unemployment - that the later business performance is better, the higher they score on this index. Effects are particularly strong for growth oriented outcomes like innovation and expansion activities. In a next step, we examine three underlying motivational categories that we term opportunity, career ambition, and necessity. We show that individuals driven by opportunity motives perform better in terms of innovation and business expansion activities, while career ambition is positively associated with survival, income, and the probability of hiring employees. All effects are robust to the inclusion of a large battery of covariates that are proven to be important determinants of entrepreneurial performance.},
  language  = {en}
}