Overall impact of climate change, mitigation and adaptation on the German economy

Our mission

What effects do climate change and climate mitigation and adaptation measures have on overall economic development in Germany? So far, the effects of these three areas have been investigated individually or not at all. In an expert report for the BMWK, the overall effect on selected economic parameters in Germany is now to be estimated, thus breaking new ground. The results are also to be incorporated into the Federal Ministry for Economic Affairs and Climate Protection’s (BMWK) short- and medium-term economic forecasts.

The project for the BMWK is being developed under the leadership of the Institute for Economic Structures Research mbH (GWS), with Prognos providing inputs for the GWS economic model. This concerns investments resulting from activities in the fields of climate protection, climate adaptation, and climate change.

Our approach

The project first clarifies the statistical basis and determines the macroeconomic (preventive) expenditures for climate protection as well as for climate adaptation measures – with a view both of the past and looking to the future.

In a second step, chains of action and channels of action on climate change as well as measures on climate protection and climate adaptation are discussed and examined in terms of their representability in the GWS economic models.

Afterwards, based on combined GWS macroeconomic models, the effects of climate change as well as climate mitigation and adaptation measures are analysed. This specifically concerns their impact on overall economic development, value-added structures, and production potential in Germany.

Project team: Dr Andreas Kemmler, Lukas Eiserbeck, Dr Jan Trenczek, Viktoria Leuschner, Josefine Droste, Jan Limbers, Dr Alex Piégsa, Alex Auf der Maur, Inka Ziegenhagen

Last update: 09.03.2023