DIW Weekly Report

DIW Berlin Economic Outlook: Industry Sputtering Globally while the German Economy Stagnates

The German economy continues to stagnate. After it appeared to finally be growing at the start of 2024, it experienced a slight setback in the second quarter. Although incomes are rising and inflation is now near the two-percent target, people in Germany are saving their money. As investments and exports faltered due to the sluggish industrial sector, the upturn has been delayed for the time being. ...

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Income, Work, and Health Satisfaction Differ Primarily by Household Income, Age, and Parental Status

Subjective well-being is essential for both quality of life and a healthy society. Studies have shown that satisfied people have better relationships, are more productive, and have a longer life expectancy. General life satisfaction is being discussed as an alternative measure of prosperity beyond GDP. Thus, findings on this topic are relevant for both the scientific community as well as policymakers. ...

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Division of Paid and Care Work Between Parents: Reality Often Differs Greatly from the Ideals

On average, mothers and fathers in Germany divide paid work and care work very unequally. Mothers often only work part time, which results in further gender inequalities in the labor market. A current analysis of data from the German Family Demography Panel Study (FReDA) shows that the population’s attitudes toward the ideal division of work between couples with children under 12 are considerably more ...

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Transitioning to Net Zero: Full Potential of Sustainable Finance Taxonomies Not Yet Exhausted

Sustainable finance taxonomies such as the European Union (EU) taxonomy can support the transition to a climate-neutral economy. As a classification system, these taxonomies serve to offer transparency and guidance as to how capital flows can be shifted to sustainable and environmentally-friendly activities. In this Weekly Report, we analyze 26 sustainable taxonomies from countries and regions around ...

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High-Income Households Emit More Greenhouse Gases, Primarily Due to Transport Behavior

Greenhouse gas emissions must be reduced by 65 percent compared to 1990 by 2030 to achieve national climate targets. Nearly one third of greenhouse gas emissions in Germany are caused by private household consumption. Using Socio-Economic Panel (SOEP) data, this Weekly Report calculates the amount of CO2 equivalents emitted by households due to residential energy use, nutrition, and transport in Germany. ...

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DIW Berlin Economic Outlook: Global Economy Recovering Swiftly; German Economy Gaining Momentum

The German economy began recovering at the beginning of 2024 and has developed better than initially expected. A sharp rise in construction investment, albeit more of a flash in the pan as a result of mild winter weather, along with strong goods exports helped the economy onto its recov¬ery path and masked the disappointing development of private consumption, which sank unexpectedly. However, consumer ...

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Quantifying Bargaining Power in Supply Chains: Essential for Merger Control

Merger control plays a central role in competition policy. When assessing proposed mergers, Competition Authorities should consider its impact on all relevant markets. Large mergers between manufacturers typically impact competition, thus requiring the approval of Competition Authorities. Divestitures are often a condition of merger approval. This report investigates the effectiveness of implementing ...

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Sanctions against Russian Gas Would Not Endanger EU or German Gas Supply

As a result of the Russian attack on Ukraine, natural gas prices skyrocketed in 2022 and Germany in particular felt the impact of its strong dependency on Russia. Prices have since relaxed, the European natural gas industry has overcome the uncertainty due to the energy crisis in 2022, and the industry also survived the slump in Russian natural gas imports without supply interruptions. However, Russia ...

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Thermal Retrofitting of Worst Performing Buildings Mitigates Risk of High Heating Costs

The pace of thermal retrofit of buildings in Germany remains slow. A Worst-First approach, prioritizing the retrofit of inefficient buildings, would address energy- and social policy objectives and deliver economic and climate benefits. Data from the German Socio-Economic Panel (SOEP) show how such an approach would protect especially low-income households often living in very inefficient buildings ...

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Electricity Markets Stabilized Following the Energy Crisis; 80 Percent Renewable Energy and Coal Phase-out by 2030 Are Possible

The German electricity market has recovered well from the 2022 energy crisis. Policymakers should now redirect the focus of energy policy to further expanding renewable energy sources. The year 2023 showed that the German electricity supply remained secure following the shutdown of nuclear power plants. It is possible, affordable, and plausible in light of climate policy to cover 80 percent of electricity ...

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