Low Carbon Leakage
Low carbon leakage describes the risk that low-CO2 industries will move to other countries if a country loses its pioneering position in a technology relevant to the energy transition. To analyse the market launch of these technologies, international value chains are modelled to identify market and diffusion barriers and to estimate economic effects. The modelling is accompanied by complementary analyses in which the social dimension of technology change is evaluated. In particular, stakeholder behaviour in the context of international competition and trade relations and the social preconditions for the introduction of new technologies are to be analysed.
The interaction between diffusion of new technologies on a domestic market, the associated showcase function and improvement of the technology's creditworthiness, and finally the positioning of this technology on global markets is often summarised under the term lead market function. Lead markets and corresponding value chains can play a decisive role in overcoming market and diffusion barriers that technologies relevant to the energy transition face. Thereby, the influence of the energy transition on the German and international value chains for these technologies depends not only on the speed of the German energy transition, but also on the speed of the transformations of the trading partners and the potential competitors for the production of technology goods.
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Our figure of the month 03/2023: Number of people in need of care in Germany doubles to 5 million within ten years
The latest care statistics show that there will be around 4.96 million people in need of care in Germany in 2021, a huge increase on previous years. All persons who receive benefits from…
New videos on the CRED project: How can climate risks and climate adaptation be integrated into macroeconomic modelling?
The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH has published two informative videos about the CRED project. In addition to insights into the management of climate risks…
Virtual training: Using macroeconomic models to assess the impacts of climate change and adaptation on national economies.
This training is offered to share experience from the CRED programme in piloting the development and application of such models in Georgia, Kazakhstan and Vietnam. The CRED programme developed…