Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/201807
Authors: 
Heinisch, Katja
Holtemöller, Oliver
Schult, Christoph
Year of Publication: 
2019
Series/Report no.: 
IWH Discussion Papers 16/2019
Abstract: 
In the fight against global warming, the reduction of greenhouse gas emissions is a major objective. In particular, a decrease in electricity generation by coal could contribute to reducing CO2 emissions. Using a multi-region dynamic general equilibrium model, this paper studies potential economic consequences of a coal phase-out in Germany. Different regional phase-out scenarios are simulated with varying timing structures. We find that a politically induced coal phase-out would lead to an increase in the national unemployment rate by about 0.10 percentage points from 2020 to 2040, depending on the specific scenario. The effect on regional unemployment rates varies between 0.18 to 1.07 percentage points in the lignite regions. However, a faster coal phase-out can lead to a faster recovery. The coal phase-out leads to migration from German lignite regions to German non-lignite regions and reduces the labour force in the lignite regions by 10,000 people by 2040.
Subjects: 
general equilibrium model
labour market friction
energy
structural change
JEL: 
E17
O11
O21
O44
Q28
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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