With shifting geopolitical tectonics Europe is in urgent need to build autonomy in defence and deterrence. As military spending is increasing significantly, Germany and Europe need an industrial strategy that helps the continent build a stronger and more independent role in developing modern defence and dual use technologies, foster competition and innovation and expand European defence production...
This paper highlights an underexplored margin of heterogeneity that shapes resilience to disruptions in global maritime trade - the differential reliance of countries and sectors on specific categories of vessels. We combine US bills of lading records with ship registry and AIS-based port call data to document new stylized facts on vessel deployment, including switching patterns across ships,...
The European Union and India have agreed on a free trade agreement. Sonali Chowdhry, trade expert at DIW Berlin, comments on the significance of this agreement:
Recent proposals for a European deposit insurance scheme (EDIS) favor a reinsurance framework. In this paper, we use a regime-switching open economy DSGE model with bank defaults to assess the relative efficiency of such a scheme. We find that reinsurance by EDIS is more effective in stabilizing real activity, credit, and welfare than a national fiscal backstop. We demonstrate that risk-weighted contributions ...
Several recent studies consider a set of proxies to identify different monetary policy shocks for different regions in the world. We show that the way the proxies are used to identify the monetary policy shocks may lead to correlated shocks and dubious structural analysis and we demonstrate how to overcome the problem of correlated shocks. We illustrate that, if correlated shocks are used in applied ...
Coping with prolonged periods of low availability of wind and solar power, also referred to as variable renewable energy droughts or “Dunkelflaute”, emerges as a key challenge for realizing decarbonized energy systems based on renewable energy. Here we investigate the role of long-duration electricity storage and geographical balancing through transmission in dealing with such events in Europe, combining ...
The European Carbon Border Adjustment Mechanism (CBAM) has the dual objective of preventing carbon leakage and promoting global carbon pricing. Yet pursuing both objectives at the same time might result in incomplete carbon leakage protection unless global carbon prices converge. As the current geopolitical situation makes such convergence seem unlikely in the near future, an extension of free allowance ...
Dieser Bericht untersucht die Relevanz von Emissionen entlang der Erdgas-Wertschöpfungskette sowie Optionen für deren Regulierung und Bepreisung im Rahmen der europäischen Klimapolitik. Der Einbezug direkte Emissionen aus der Lieferkette – sowohl Kohlendioxid (CO₂) als auch Methan (CH₄) – kann die Abschätzung des gesamten Klimafußabdrucks von Erdgas erheblich größer ausfallen lassen - um bis zu 35 ...
