EcoEff: Macroeconomic Inefficiency and Emission Reduction Potentials: Accounting for Heterogeneous Industry Structures

Duration: December 2018 until November 2021

Project coordination: Darmstadt University of Technology, Chair of Empirical Economics

Cooperation partners: University of Kassel, Chair of Energy Economics

Commissioned by: Federal Ministry of Education and Research (BMBF), second phase of the funding priority "Economics of Climate Change" („Ökonomie des Klimawandels“)

Summary: The joint project EcoEff ("Macroeconomic Inefficiency and Emission Reduction Potentials: Accounting for Heterogeneous Industry Structures") deals with reduction potentials of harmful greenhouse gas emissions in the most important industrial sectors in Germany and the EU member states. Therefore, the explicit consideration of country-specific industrial structures and the unbundling into sector-specific and structural inefficiencies enables to identify the temporal dimension of reduction potentials. These are classified as short-, medium- or long-term. In addition, greenhouse gases are also considered in a differentiated way, allowing pollutant-specific challenges to be analyzed.

On the basis of the identified inefficiencies and industry and pollutant-specific emissions, detailed abatement costs can be derived. This further allows to determine the costs of complete decarbonization. In this way, important conclusions can be drawn for the cost differences in emission reduction between industries and nations.

Following the empirical studies, scenarios will be developed how inefficiencies and abatement costs will develop in the future. Based on this, an evaluation of the climate protection goals of the European Union for 2030 and 2050 will follow with regard to feasibility and costs.

Dialogue on the Economics of Climate Change: EcoEff is one of the research projects within the framework of the funding priority Economics of Climate Change II. These are interlinked by the project Dialogue of the Economics of Climate Change, which supports the funding priority. This promotes the active transfer of knowledge between the projects and intensifies the exchange between research and practice.


Larissa Fait

Tel. (0561) 804 - 1959

Prof. Dr. Heike Wetzel 

Tel. (0561) 804 - 7750