Kiel Institute for The World Economy

www.ifw-kiel.de
Kiel, Germany

The Kiel Institute for the World Economy is an economics research center and a think tank that is located in Kiel, Germany.In 2013, it was ranked as one of the top 20 research centers in the world for International Trade and one of the top four think tanks in the world for economic policy.With more than four million publications in printed or electronic format and subscriptions to 31,970 periodicals and journals, the Institute has the world's largest specialist library for economics.It is affiliated with the University of Kiel where it cooperates closely with the Department of Business, Economics, and Social science. It is nevertheless legally and academically independent of the University of Kiel. Since 1 January 2007, it has been an independent, nonprofit organization . It is a member of an association of research institutions, museums, and service centers called the Gottfried Wilhelm Leibniz Scientific Community or Leibniz Association and is ranked as one of the top six leading economics research institutions in the Leibniz Association. Like all the institutions that are members of the Leibniz Association, it is funded 50% by the German federal government and 50% by the German states. It employs approximately 160 people, of whom more than 80 are economists. It is headed by a president, currently Dennis J. Snower. Wikipedia.

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Braun C.,Kiel Institute for The World Economy
Risk Analysis | Year: 2017

Carbon capture and storage (CCS) is a technology that counteracts climate change by capturing atmospheric emissions of CO2 from human activities, storing them in geological formations underground. However, CCS also involves major risks and side effects, and faces strong public opposition. The whereabouts of 408 potential CCS sites in Germany were released in 2011. Using detailed survey data on the public perception of CCS, this study quantifies how living close to a potential storage site affects the acceptance of CCS. It also analyzes the influence of other regional characteristics on the acceptance of CCS. The study finds that respondents who live close to a potential CCS site have significantly lower acceptance rates than those who do not. Living in a coal-mining region also markedly decreases acceptance. © 2017 Society for Risk Analysis.


Maddison D.,University of Birmingham | Rehdanz K.,Kiel Institute for The World Economy
Ecological Economics | Year: 2011

We analyse the influence of climate on average life satisfaction in 79 countries using data from the World Values Survey. Climate is described in terms of 'degree-months' calculated as the cumulated monthly deviations from a base temperature of 65 °F (18.3 °C). Our results suggest that countries with climates characterised by a large number of degree-months enjoy significantly lower levels of life satisfaction. This finding is robust to a wide variety of model specifications. Using our results to analyse a particular climate change scenario associated with the IPCC A2 emissions scenario points to major losses for African countries, but modest gains for Northern Europe. © 2011 Elsevier B.V.


Vaona A.,University of Verona | Vaona A.,Kiel Institute for The World Economy
Energy Policy | Year: 2012

The present paper considers an Italian dataset with an annual frequency from 1861 to 2000. It implements Granger non-causality tests between energy consumption and output contrasting methods allowing for structural change with those imposing parameter stability throughout the sample. Though some econometric details can differ, results have clear policy implications. Energy conservation policies hasten an underlying tendency of the economy towards a more efficient use of fossil fuels. The abandonment of traditional energy carriers was a positive change. The challenge for renewable energy is to diversify among different sources and to overcome possible social acceptance problems. © 2012 Elsevier Ltd.


Britz W.,University of Bonn | Delzeit R.,Kiel Institute for The World Economy
Energy Policy | Year: 2013

As part of its climate policy, Germany promotes the production of biogas via its so-called Renewable-Energy-Act (EEG). The resulting boost in biogas output went along with a significant increase in production of green maize, the dominant feedstock. Existing studies of the EEG have analysed its impacts on German agriculture without considering market feedback. We thus expand existing quantitative analysis by also considering impacts on European and global agricultural markets, land use and the environment by combining a detailed location model for biogas plants, the Regionalised Location Information System-Maize (ReSi-M2012), with a global Partial Equilibrium model for agriculture, the Common Agricultural Policy Regional Impact (CAPRI) model. Our results indicate that the German biogas production is large enough to have sizeable impacts on global agricultural markets in prices and quantities, causing significant land use change outside of Germany. While profits in the agricultural sector increase, food consumer face higher prices, and subsidies for biogas production are passed on to electricity consumers. The German biogas program, as long as it is almost entirely based on non-waste feedstocks, is probably not a promising avenue towards a GHG-saving renewable energy production, but a rather expensive one. © 2013 Elsevier Ltd.


Hubler M.,Kiel Institute for The World Economy
Energy Economics | Year: 2011

This paper introduces a mechanism of international technology diffusion via FDI and imports into recursive-dynamic CGE modeling for climate policy analysis. As a novel feature, the mechanism distinguishes spillovers from foreign do domestic capital within sectors and across sectors within the production chain. The paper applies the mechanism to the analysis of a contraction and convergence type climate policy focusing on China. The mechanism of international technology diffusion leads to an increase in China's energy productivity an a decline in China's economic growth rates in a convergence process. In this case, inter-regional emissions trading could (more than) compensate China's welfare losses due to climate policy. Otherwise, China's welfare losses due to climate policy could be significant. © 2010 Elsevier B.V.


Klepper G.,Kiel Institute for The World Economy
Energy Economics | Year: 2011

This paper discusses developments in the markets for CO2 emissions rights since the Kyoto Protocol was signed. The different emissions trading schemes, dominated by the Emission Trading System of the European Union and the Clean Development Mechanism, are surveyed. These schemes will need to be incorporated into any post-Kyoto multilateral agreement. Drawing on a simple model, the paper analyzes the incentives that developing and developed countries face for continuing or transforming the Clean Development Mechanism in the light of future agreements for a worldwide emissions control program. © 2010 Elsevier B.V.


Lange M.,Kiel Institute for The World Economy
Energy Policy | Year: 2011

The contribution of biofuels to the saving of greenhouse gas (GHG) emissions has recently been questioned because of emissions resulting from land use change (LUC) for bioenergy feedstock production. We investigate how the inclusion of the carbon effect of LUC into the carbon accounting framework, as scheduled by the European Commission, impacts on land use choices for an expanding biofuel feedstock production. We first illustrate the change in the carbon balances of various biofuels, using methodology and data from the IPCC Guidelines for National Greenhouse Gas Inventories. It becomes apparent that the conversion of natural land, apart from grassy savannahs, impedes meeting the EU's 35% minimum emissions reduction target for biofuels. We show that the current accounting method mainly promotes biofuel feedstock production on former cropland, thus increasing the competition between food and fuel production on the currently available cropland area. We further discuss whether it is profitable to use degraded land for commercial bioenergy production as requested by the European Commission to avoid undesirable LUC and conclude that the current regulation provides little incentive to use such land. The exclusive consideration of LUC for bioenergy production minimizes direct LUC at the expense of increasing indirect LUC. © 2011 Elsevier Ltd.


Kretschmer B.,Kiel Institute for The World Economy | Peterson S.,Kiel Institute for The World Economy
Energy Economics | Year: 2010

In the past years biofuels have received increased attention since they were believed to contribute to rural development, energy security and to fight global warming. It became clear, though, that bioenergy cannot be evaluated independently of the rest of the economy and that national and international feedback effects are important. Computable general equilibrium (CGE) models have been widely employed in order to study the effects of international climate policies. The main characteristic of these models is their encompassing scope: Global models cover the whole world economy disaggregated into regions and countries as well as diverse sectors of economic activity. Such a modelling framework unveils direct and indirect feedback effects of certain policies or shocks across sectors and countries. CGE models are thus well suited for the study of bioenergy/biofuel policies. One can currently find various approaches in the literature of incorporating bioenergy into a CGE framework. This paper gives an overview of existing approaches, critically assesses their respective power and discusses the advantages of CGE models compared to partial equilibrium models. Grouping different approaches into categories and highlighting their advantages and disadvantages is important for giving a structure to this rather recent and rapidly growing research area and to provide a guidepost for future work. © 2009 Elsevier B.V.


Bertram C.,Kiel Institute for The World Economy
Energy Policy | Year: 2010

Ocean iron fertilization is currently discussed as a potential measure to mitigate climate change by enhancing oceanic CO2 uptake. Its mitigation potential is not yet well explored, and carbon offsets generated through iron fertilization activities could currently not be traded on regulated carbon markets. Still, commercial interests in ocean iron fertilization already exist, which underlines the need to investigate a possible regulatory framework for it. To this end, I first discuss important basic aspects of ocean iron fertilization, namely its scientific background, quantitative potential, side effects, and costs. In a second step, I review regulatory aspects connected to ocean iron fertilization, like its legal status and open access issues. Moreover, I analyze how the regulations for afforestation and reforestation activities within the framework of the Kyoto Clean Development Mechanism (CDM) could be applied to ocean iron fertilization. Main findings are that the quantitative potential of ocean iron fertilization is limited, that costs are higher than initially hoped, and that potential adverse side effects are severe. Moreover, the legal status of ocean iron fertilization is currently not well defined, open access might cause inefficiencies, and the CDM regulations could not be easily applied to ocean iron fertilization. © 2009 Elsevier Ltd. All rights reserved.


Heitmann N.,Kiel Institute for The World Economy | Khalilian S.,Kiel Institute for The World Economy
Marine Policy | Year: 2011

CO2 emissions from international shipping, which are currently unregulated, are predicted to rise dramatically if no regulations are implemented. International bunker fuel emissions have been excluded from the Kyoto Protocol; the UNFCCC conference in Copenhagen also failed to bring about clear directions on how to proceed with these emissions.In this paper, the various options suggested by the Subsidiary Body for Scientific and Technological Advice of the UNFCCC for allocating CO2 emissions from international shipping to individual countries are investigated. This is followed by a discussion of the economic and regulatory issues related to these options and the consequences of applying them. Then, the various options are evaluated on the basis of environmental effectiveness, possibility of legal implementation, and fairness of burden sharing. The evaluation shows that there is no single allocation option that can be regarded as environmentally effective, legally effective and allowing for fair burden sharing. Nevertheless, it is concluded that an allocation of international shipping emissions should be conducted on the basis of the operating company. © 2011 Elsevier Ltd.

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