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The German Institute for Economic Research is one of the leading economic research institutes in Germany. It is an independent, non-profit academic institution which is involved in basic research and policy advice. DIW Berlin was originally founded in 1925 as Institute for Business Cycle Research and was later renamed to its current name.DIW Berlin presents its research results in science journals, within the scope of national and international scientific events as well as at workshops, symposia and colloquia. The research results provide a basis for the exchange of ideas among experts and other relevant groups. Current economic and structural data, forecasts and advices as well as services in the area of quantitative economics are provided to decision makers in economics and policy and the broad public. DIW Berlin endues a target group specific range of publications, events and data sources. Furthermore, the research results meet with major response in media. Wikipedia.

Schroeder A.,German Institute for Economic Research
Applied Energy

Storage devices and demand control may constitute beneficial tools to optimize electricity generation with a large share of intermittent resources through inter-temporal substitution of load. This paper quantifies the related cost reductions in a simulation model of a simplified stylized medium-voltage grid (10. kV) under uncertain demand and wind output. Benders Decomposition Method is applied to create a two-stage stochastic optimization program. The model informs an optimal investment sizing decision as regards specific 'smart' applications such as storage facilities and meters enabling load control. Model results indicate that central storage facilities are a more promising option for generation cost reductions as compared to demand management. Grid extensions are not appropriate in any of the scenarios. A sensitivity analysis is applied with respect to the market penetration of uncoordinated Plug-In Electric Vehicles which are found to strongly encourage investment into load control equipment for 'smart' charging and slightly improve the case for central storage devices. © 2011 Elsevier Ltd. Source

Schill W.-P.,German Institute for Economic Research
Energy Policy

We use a game-theoretic model to analyze the impacts of a hypothetical fleet of plug-in electric vehicles on the imperfectly competitive German electricity market. Electric vehicles bring both additional demand and additional storage capacity to the market. We determine the effects on prices, welfare, and electricity generation for various cases with different players in charge of vehicle operations. Vehicle loading increases generator profits, but decreases consumer surplus in the power market. If excess vehicle batteries can be used for storage, welfare results are reversed: generating firms suffer from the price-smoothing effect of additional storage, whereas power consumers benefit despite increasing overall demand. Strategic players tend to under-utilize the storage capacity of the vehicle fleet, which may have negative welfare implications. In contrast, we find a market power-mitigating effect of electric vehicle recharging on oligopolistic generators. Overall, electric vehicles are unlikely to be a relevant source of market power in Germany in the foreseeable future. © 2011 Elsevier Ltd. Source

Grau T.,German Institute for Economic Research
Energy Economics

This paper reviews the adjustments of the feed-in tariffs for new solar photovoltaic (PV) installations in Germany. As PV system prices declined rapidly since 2009, the German government implemented automatic mechanisms to adjust the remuneration level for new installations in response to deployment volumes. This paper develops an analytic model to simulate weekly installations of PV systems of up to 30. kW based on project profitability and project duration. The model accurately replicates observed market developments and is used to assess different adjustment mechanisms against multiple scenarios for PV system price developments. The analysis shows that responsive feed-in tariff schemes with frequent tariff adjustments and short qualifying periods reach deployment targets most effectively. © 2014 Elsevier B.V. Source

Marcus J.,German Institute for Economic Research
Journal of Health Economics

Studies on health effects of unemployment usually neglect spillover effects on spouses. This study specifically investigates the effect of an individual's unemployment on the mental health of their spouse. In order to allow for causal interpretation of the estimates, it focuses on plant closure as entry into unemployment, and combines difference-in-difference and matching based on entropy balancing to provide robustness against observable and time-invariant unobservable heterogeneity. Using German Socio-Economic Panel Study data the paper reveals that unemployment decreases the mental health of spouses almost as much as for the directly affected individuals. The findings highlight that previous studies underestimate the public health costs of unemployment as they do not account for the potential consequences for spouses. © 2013 Elsevier B.V. Source

Braun F.G.,German Institute for Economic Research
Energy Policy

Considering the increasing attention on efficient use of energy, it becomes vitally important to understand the energy-related behavior of households. This article presents empirical evidence on the determinants of the space heating technology applied by a household. Three sets of variables are examined as potential influences-building, socio-economic, and regional characteristics. To highlight both the differences and similarities, the results are obtained from a sample of house owners, and from a sample including all households. The influence of socio-economic factors is similar across these groups. Income is found to exert only a minor impact on the system choice. Dwelling features are significant in determining the heating type, particularly in the sample including all households. Regional effects are important-clear differences prevail between East and West Germany. © 2010 Elsevier Ltd. All rights reserved. Source

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