Search Results (29)

The economic assessment of CO₂ emissions from fossil fuels is gaining importance in the context of sustainable development. Climate change, driven by excessive greenhouse gas emissions, poses a significant threat to humanity, requiring an integrated approach that considers both environmental and economic factors. The European Union (EU) plays a key role in global efforts to reduce CO₂ emissions and promote sustainability. This study explores economic approaches to analyzing CO₂ emissions in Europe, focusing on trends in fossil fuel use and their economic drivers. The research highlights the connection between economic activity, energy consumption, and emissions, contributing to a better understanding of climate change mitigation strategies. The findings emphasize the strong influence of demographic factors on carbon emissions, stressing the need for targeted policies to address the environmental impact of population growth. This study presents a literature-based assessment of CO₂ emissions from fossil fuel consumption in the context of sustainable development, with a focus on Europe. Recognizing the urgent threat posed by climate change, the paper explores how economic and demographic factors influence emissions trends and energy consumption. Through the synthesis of recent research and statistical data, it examines the relationship between economic activity and CO₂ emissions across EU countries. Special attention is given to national policy frameworks, particularly Germany’s “Energiewende”, as a successful example of emission reduction through building-sector reform. The study highlights that while economic growth remains a driver of emissions, strategic investments in renewable energy, energy efficiency, and sectoral transformation can decouple growth from environmental degradation. The findings support the need for country-specific mitigation strategies, emphasizing that uniform approaches may not address the diverse challenges faced by EU member states. This work contributes to the broader understanding of climate policy design by linking empirical evidence with policy implications in the transition to a low-carbon economy. Full article

In this work, we introduce an innovative approach to managing electricity costs within Germany’s evolving energy market, where dynamic tariffs are becoming increasingly normal. In line with recent German governmental policies, particularly the Energiewende (Energy Transition) and European Union directives on clean energy, this work introduces a risk management strategy based on a combination of the well-known risk measures of the Value at Risk (VaR) and Conditional Value at Risk (CVaR). The goal is to optimize electricity procurement by forecasting hourly prices over a certain horizon and allocating a fixed budget using the aforementioned measures to minimize the financial risk. To generate price predictions, a Gaussian process regression model is used. The aim of this hybrid approach is to design a model that is easily understandable but allows for a comprehensive evaluation of potential financial exposure. It enables consumers to adjust their consumption patterns or market traders to invest and allows more cost-effective and risk-aware decision-making. The potential of our approach is shown in a case study based on the German market. Moreover, by discussing the political and economical implications, we show how the implementation of our method can contribute to the realization of a sustainable, flexible, and efficient energy market, as outlined in Germany’s Renewable Energy Act. Full article

In the context of the German Energiewende, the current government intends to install six million heat pumps by 2030. Replacing gas heating by power has significant implications on the infrastructure. One of the biggest advantages of using gas is the existing storage portfolio. It has not been clarified yet how power demand should be structured on an annual level—especially since power storage is already a problem and solar power is widely promoted to fuel heat pumps, despite having an inverse profile. In this article, three different solutions, namely, hydrogen, batteries, and carbon capture and storage, are discussed with respect to resources, energy, and financial demand. It shows that relying solely on batteries or hydrogen is not solving the structuring problem. A combination of all existing technologies (including fossil fuels) is required to structure the newly generated electricity demand. Full article

This paper examines the impact of Russia’s invasion of Ukraine on the Germany public’s energy choices. Along with much of Europe, Germany was hit by Russia reducing and then cutting its gas supplies. Although alternative sources have been found, this exposes the vulnerability of Germany’s energy market to outside control. An online survey of 600 German consumers was conducted in August 2022. The results suggest that 70% of participants were concerned about the shortage of oil and natural gas supply after Russia’s invasion of Ukraine, and 60% were concerned about the shortage of electricity supply. The invasion led many participants to support maximizing the use of existing power plants, including nuclear and coal-fired power plants, as an alternative to dependency on Russian supplies. There was an increase in people supporting the expanded use of renewable energy as a solution to the crisis. States with nuclear power plants were seen as needing to reduce and decarbonize their natural gas and coal-fired power generation while advancing their energy mix. The results suggest that the Energiewende approach and objectives have broad public support. Full article

This paper summarizes the findings of a detailed assessment of synthetic, electricity-based fuels for use in aviation, shipping, and road transport. The fuels considered correspond to the most promising alternatives that were analyzed as part of the German research project BEniVer (Begleitforschung Energiewende im Verkehr—Accompanying Research for the Energy Transition in Transport) initiated by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). Focusing on usage, infrastructure, and ecological analyses, several e-fuels were evaluated and compared to fossil fuels according to the specific sector. It turns out that for all sectors evaluated, the existing sustainable synthetic fuels are already compatible with current technology and regulations. In shipping and road transport, the use of advanced, sustainable fuels will allow for a more distinct reduction in emissions once technology and regulations are adopted. However, standard-compliant synthetic gasoline and diesel are considered the most promising fuels for use in road transport if the transition to electricity is not realized as quickly as planned. For the aviation sector, the number of sustainable aviation fuels (SAFs) is limited. Here, the current aim is the introduction of a 100% SAF as soon as possible to also tackle non-CO₂ emissions. Full article

The complexity of linking sustainability with transformation necessitates a critical re-evaluation of the ways the actors, processes, issues, structures, and outcomes related to the transformation to sustainability (T2S) can be understood. At the same time, achieving T2S is highly dependent on policies based on technical solutions that can prompt needed behavioural change, whereas these technical solutions are not always compatible with both planetary and societal boundaries. Therefore, achieving T2S also calls for evaluating the normative foundations of policies and actions. This paper contends that T2S is significantly defined by the multiplicity of negotiation processes. This justifies a deeper look at T2S from the perspective of negotiation studies. T2S is composed of different phases, each of which has a different set of actors, resources, and audiences. This paper introduces a theoretical model as an analytical meta-framework to structure how T2S unfolds in an orchestrated manner. This model builds on negotiation theories to focus on the actors’ perspectives on T2S. It proposes the division of the transformation process into phases—entry point, learning, sequencing, disrupting, and fortifying. Each of these phases is analysed to determine the “quality” of cooperation that can help fulfil the tasks required to master the so-called “cognitive games” of T2S (ripeness game, power game, bargaining game, policy game, scaling game). Moreover, insights are presented to explain how the designated milestones can be achieved to indicate the advancement to the next phase and eventually entrench the transformation process. The findings resulting from the analysis of the phases of T2S present potential lessons and opportunities for both theorists and practitioners/policymakers. Full article

The widely recognised Energiewende, (“energy transition”) in Germany has lost its original momentum. We therefore address the question of how the transition process to a new energy system can be reignited. To do so, we developed the “5Ds approach”, which lays the groundwork for a process analysis and the identification of important catalysts and barriers. Focusing on the five major fields required for the energy transition, we analyse the effects of: (1) Decarbonisation: How can efficiency and renewable energies be expanded successfully? (2) Digitalisation: Which digital solutions facilitate this conversion and would be suitable as sustainable business models? (3) Decentralisation: How can potential decentralised energy and efficiency opportunities be developed? (4) Democratisation: How can participation be strengthened in order to foster acceptance (and prevent “yellow vest” protests, etc.)? (5) Diversification of service: Which services can make significant contributions in the context of flexible power generation, demand-side management, storage and grids? Our paper comes to the conclusion that German policy efforts in the “5D” fields have been implemented very differently. Particularly with regard to democratisation, the opportunities for genuine participation among the different social actors must be further strengthened to get the Energiewende back on track. New market models are needed to meet the challenges of the energy transition and to increase the performance of “5D” through economic incentives. Full article

Germany’s energy transition, known as ‘Energiewende’, was always very progressive. However, it came technically to a halt at the question of large-scale, seasonal energy storage for wind and solar, which was not available. At the end of the 2000s, we combined our knowledge of both electrical and process engineering, imitated nature by copying photosynthesis and developed Power-to-Gas by combining water electrolysis with CO₂-methanation to convert water and CO₂ together with wind and solar power to synthetic natural gas. Storing green energy by coupling the electricity with the gas sector using its vast TWh-scale storage facility was the solution for the biggest energy problem of our time. This was the first concept that created the term ‘sector coupling’ or ‘sectoral integration’. We first implemented demo sites, presented our work in research, industry and ministries, and applied it in many macroeconomic studies. It was an initial idea that inspired others to rethink electricity as well as eFuels as an energy source and energy carrier. We developed the concept further to include Power-to-Liquid, Power-to-Chemicals and other ways to ‘convert’ electricity into molecules and climate-neutral feedstocks, and named it ‘Power-to-X’at the beginning of the 2010s. Full article

The devastating nuclear disaster in Fukushima, Japan, in 2011, which was triggered by a tsunami in the wake of an earthquake, resulted in the decision to quickly phase out nuclear power and with it implicitly accelerated the German Energiewende (energy transition). To the outside observer, the decision appeared to be spontaneous and possibly due to a distorted perception of the associated risks of nuclear power. From the decision results not only the limiting uses of private property by conventional energy providers, but the exit from nuclear energy has also implications for the energy market. As with every human, political actors decide under uncertainty and incomplete information. Based on these parameters, we emphasize that the decision of a political actor is comparable to management decision-making. The paper takes this as an opportunity to examine the political decision to phase-out nuclear energy by discussing relevant parameters from the perspective of decision theory. We plead for a mandatory consideration of economic findings, especially from decision theory and risk management in political decision-making processes, especially in matters that affect future generations. Full article

More than 150 municipal utilities (so-called Stadtwerke) were established in Germany from the beginning of the millennium, bringing the total number of Stadtwerke currently established within the country to approximately 900. With responsibility for more than half of the supply of electricity, gas and heat in Germany, these Stadtwerke play a central role in the transformation of the energy sector, or Energiewende. In addition, due to their local and regional ties, Stadtwerke have a particular role to play in energy politics, the economy and across society. This article focuses on the motives behind, and grounds for, the current wave of newly established Stadtwerke. Further, it discusses the factors that were critical to the successful formation of new Stadtwerke in recent years. The results of our survey indicate that the establishment of municipal Stadtwerke is a suitable measure to implement the energy transition at the local level, whereby the concept of public value has a high level of importance for the local decision-makers. Collaboration and cooperation, as well as a resilience-oriented strategy, are important success factors for new Stadtwerke. Full article

The German Energiewende is a deliberate transformation of an established industrial economy towards a nearly CO₂-free energy system accompanied by a phase out of nuclear energy. Its governance requires knowledge on how to steer the transition from the existing status quo to the target situation (transformation knowledge). The energy system is, however, a complex socio-technical system whose dynamics are influenced by behavioural and institutional aspects, which are badly represented by the dominant techno-economic scenario studies. In this paper, we therefore investigate and identify characteristics of model studies that make agent-based modelling supportive for the generation of transformation knowledge for the Energiewende. This is done by reflecting on the experiences gained from four different applications of agent-based models. In particular, we analyse whether the studies have improved our understanding of policies’ impacts on the energy system, whether the knowledge derived is useful for practitioners, how valid understanding derived by the studies is, and whether the insights can be used beyond the initial case-studies. We conclude that agent-based modelling has a high potential to generate transformation knowledge, but that the design of projects in which the models are developed and used is of major importance to reap this potential. Well-informed and goal-oriented stakeholder involvement and a strong collaboration between data collection and model development are crucial. Full article

The transition process towards renewable energy systems is facing challenges in both fluctuating electricity generation of photovoltaic and wind power as well as socio-economic disruptions. With regard to sector integration, solutions need to be developed, especially for the mobility and the industry sector, because their ad hoc electrification and decarbonization seem to be unfeasible. Power-to-fuel (P2F) technologies may contribute to bridge the gap, as renewable energy can be transferred into hydrogen and hydrocarbon-based synthetic fuels. However, the renewable fuels production is far from economically competitive with conventional fuels. With a newly developed agent-based model, potential developments in the German energy markets were simulated for a horizon of 20 years from 2016 to 2035. The model was constructed through a participatory modeling process with relevant actors and stakeholders in the field. Model findings suggest that adjusted regulatory framework conditions (e.g., exemptions from electricity surtaxes, accurate prices for CO₂-certificates, strong start-up subsidies, and drastic emission reduction quotas) are key factors for economically feasible P2F installations and will contribute to its large-scale integration into the German energy system. While plant capacities do not exceed 0.042 GW in a business-as-usual scenarios, the above-mentioned adjustments lead to plant capacities of at least 3.25 GW in 2035 with concurrent reduction in product prices. Full article

The energy transformation is changing the structure of the energy sector in Europe and Germany. In this paper the current structure of the energy sector is analysed both empirically as well as theoretically. Therefore, the authors have developed the business model framework for the energy transformation (BMFE). The framework is a synthesis of classical business model designs. An exhaustive survey of existing business models based on primary data collection and a literature review leads to 638 business models. Finally, 69 prototypical business models of the energy sector are the result of the classification of these business models. The information of the business models within the BMFE is applied to show the growing importance of value creation networks in energy industry. The work represents the current status of the business models in the energy sector. Full article

The political discussion to reduce the carbon footprint of Germany’s electricity sector, focusing on coal, is intensifying. In this paper, we develop scenarios for phasing out lignite and hard coal power plants in Germany prior to the end of their technical lifespan (“coal-exit”). Our analysis bases upon two coal-exit instruments, the retirement of coal generation capacities and the limiting of how much aged coal power plants with high carbon intensity can be used within a year. Results show that phasing out coal in Germany would have a considerable impact on Central European electricity markets, in terms of decarbonization efforts and electricity trade. An ambitious coal-exit could avert foreseeable shortcomings in Germany’s climate performance in the short-run and release additional carbon savings, thus compensating for potential shortfalls in other energy-intensive sectors by 2030. Limited emissions in the range of 27% would be shifted to neighboring countries. However, tremendous positive climate effects on European scale would result, because Germany’s annual emission savings in 2030 would be substantial. Totaling 85 million tons of CO₂, the overall net reduction is equivalent to 17.5% of total European emissions in 2030 without retirements of coal-firing power plants prior to the end of their technical lifespan. Full article

The decarbonisation of the building stock is an important element for the success of the German Energiewende (energy transition). Despite some progress having been made, the rate of energy renovation falls below the level required to meet political commitments. This gives rise to the question: what deters property owners from making energy efficiency investments and how can the policy framework foster such investments? To answer this question, the paper focuses on a widely neglected property owner group: small private landlords (SPL). Although they manage 37% of all residential rental properties in Germany, very little is known about their decision-making processes for energy efficiency investments. We applied a mixed-method design to identify factors that hindered and supported their investments. In an explorative study, we initially conducted 18 problem-centred interviews. Subsequently, we carried out a postal survey and analysed the questionnaires using a hierarchical linear regression model. The results show that energy renovation is a multi-dimensional decision-making process, which can only be adequately addressed by a comprehensive policy package. To develop such a package, the author recommends that the specific investment behaviour of SPL must be better targeted, their knowledge about energy efficiency investments must be improved through exchange and networking, a sense of responsibility for the neighbourhood must be fostered, and greater focus must be placed on improving local framework conditions. Full article