Hurdles still outweigh opportunities for bioCDR

How are different processes for removing CO2 from the atmosphere perceived by stakeholders in different regions of Germany? This question was explored in workshops of the project BioNET ("Multistage assessment of biobased negative emission technologies")1 in order to beter understand the potential and challenges of biomass-based carbon dioxide removal (bioCDR) technologies. Experts from industry, agriculture, forestry, NGOs and policy were involved in four stakeholder workshops to discuss bioCDR measures, their regional characteristics and sociopolitical trust. The results show that bioCDR technologies such as afforestation, pyrolysis of biomass (PyCCS) and peatland rewetting are seen as promising, but face regulatory, economic and social barriers. While there are regional differences in feasibility, there are recurring challenges such as land competition, lack of political support and uncertainties in financing. Particular emphasis was placed on the importance of cascading use in order to maximize the efficiency of bioCDR. The "Carbon Cascadia" simulation game we developed supported the discussion on biomass cascades and long-term CO2 storage. The results highlight the need for targeted funding instruments and a coordinated policy framework, including citizen participation, in order to establish bioCDR in the long term. Without clear strategies and societal involvement, there is a risk that the potential of these technologies will remain untapped. The report provides valuable insights for research, policy and practice for the further development of bioCDR in Germany

China's promotion of overseas green projects: Old models and new dynamics

Over the past 15 years, green industries have developed rapidly in China, and with an increasingly saturated domestic market, Chinese companies have intensified their search for overseas markets. The Chinese government is supporting that pursuit under the Green Belt and Road Initiative. This report provides an overview of how China is promoting its green industries overseas; specifically, which models of co-operation are typically used in non-hydro renewable energy projects and what are the new dynamics compared with the traditional projects. The analysis is illustrated with examples of projects mainly in Africa, supplemented with examples in Southeast Asia. [...

The Global Gender Distortions Index (GGDI)

The extent to which women participate in the labor market varies greatly across the globe. If such differences reflect distortions that women face in accessing good jobs, they can reduce economic activity through a misallocation of talent. In this paper, we build on Hsieh et al. (2019) to provide a methodology to quantify these productivity consequences. The index we propose, the "Global Gender Distortions Index (GGDI)", measures the losses in aggregate productivity that gender-based misallocation imposes. Our index allows us to separately identify labor demand distortions (e.g., discrimination in hiring for formal jobs) from labor supply distortions (e.g., frictions that discourage women's labor force participation) and can be computed using data on labor income and job types. Our methodology also highlights an important distinction between welfare-relevant misallocation and the consequences on aggregate GDP if misallocation arises between market work and non-market activities. To showcase the versatility of our index, we analyze gender misallocation within countries over time, across countries over the development spectrum, and across local labor markets within countries. We find that misallocation is substantial and that demand distortions account for most of the productivity losses

Green Transition with Dynamic Social Preferences

We examine a green transition policy involving a tax on brown goods in an economy where preferences for green consumption consist of a constant intrinsic individual component and an evolving social component. We analyse equilibrium dynamics when social preferences exert a positive externality in green consumption, creating complementarity between policy and preferences. The results show that accounting for this externality allows for a lower tax rate compared to policy ignoring the social norm effects. Furthermore, stability conditions permit gradual tax reductions or even removal along the transition path, minimising welfare losses. Thus, incorporating policy-preference interactions improves green transition policy design

Desirable banking competition and stability

Every financial crisis raises questions about how the banking market structure affects the real economy. Although low bank concentration may reduce markups and foster riskier behavior, concentrated banking systems appear more resilient to financial shocks. We use a nonlinear dynamic stochastic general equilibrium model with financial frictions to compare the transmissions of shocks under different competition and concentration configurations. The results reveal that oligopolistic competition amplifies the effects of the shocks relative to monopolistic competition. The transmission mechanism works through the markups, which are amplified when banking concentration is increased. The desirable banking market structure is determined according to financial stability and social welfare objectives. Moreover, we find that depending on policymakers’ preferences, a banking concentration of five to eight banks balances social welfare and bank stability objectives in the United States

Green Startup Report 2025

Ein zentrales Element dieser Forschung des Borderstep Instituts ist die systematische Langzeitvermessung des grünen Gründungs-Ökosystems in Deutschland. In diesem Jahr werden die daraus gewonnenen Erkenntnisse als „Green Startup Report 2025“ veröffentlicht. Die Studie markiert einen Meilenstein: Zum ersten Mal kommt eine neue, wissenschaftlich validierte Methodik zum Einsatz, die eine deutlich präzisere Analyse der Dynamik grüner Start-ups ermöglicht. Die Grundlage bilden Daten zu mehr als 12.000 jungen Unternehmen sowie über 50.000 Handelsregistereinträgen zu Investitionen in Start-ups. Damit bietet der Green Startup Report 2025 ein bislang unerreichtes Maß an empirischer Tiefe und ermöglicht fundiertere Aussagen über die Entwicklung nachhaltiger Geschäftsmodelle, ihre Marktchancen und ihren tatsächlichen Beitrag für den Klimaschutz. Die Analyse macht deutlich: Grüne Start-ups sind relevante Akteurinnen und Akteure der nachhaltigen Transformation. Sie entwickeln marktbasierte Lösungen für Umwelt- und Klimaschutz. Durch ihr unternehmerisches Handeln leisten sie einen messbaren Beitrag zur Erreichung nationaler und europäischer Klimaziele

Institutional change and endogenous development: Theoretical contributions

This essay aims to address the existing theoretical gap regarding the in-depth study of institutional change and its relationship with the endogenous development potential of regions. The intersection of these two theoretical approaches offers an understanding of how changes in formal and informal institutions can influence local development, especially when internal resources and local capacities drive this progress. The research was conducted using a bibliographic method and adopts a qualitative approach, seeking an in-depth understanding of the topic. Relevant assumptions about endogenous development were presented and articulated with the institutional change by Douglass North. The contribution of this theoretical approach was to highlight the role of institutional change as a driving force behind regional endogenous development, defining, from the perspective of endogenous development, the institutions that are determinants of the development process of economies. Based on our theoretical construction, we suggest future studies that are concerned with illustrating empirical cases of how formal and informal institutions can promote endogenous development

Renewable Energy Consumption and International Trade: Does Climate Policy Stringency Matter?

This study explores the link between renewable energy consumption and international trade, with a focus on climate policy. We argue that this relationship is nonlinear and shaped by threshold effects. Using a dynamic threshold model (Seo & Shin, 2016), we analyze data from 1990 to 2023 for 29 developed and developing countries. Our results show that climate policy plays a key role in shaping the renewable energy–trade nexus, with effects depending on policy stringency and development level. In developing countries, renewable energy use consistently boosts exports, regardless of policy stringency. In contrast, in developed countries, strict policies reduce import dependence–signaling energy independence–but may also weaken renewable energy's positive trade effects due to higher compliance costs and regulatory barriers. These findings call for tailored strategies: developed countries should balance ambitious climate goals with trade efficiency by easing regulatory burdens and promoting international policy coordination, while developing countries can use renewable energy to enhance exports, attract investment, and build technological capabilities

The new EU Stability and Growth Pact – new bottle with a lot of old wine

The article reviews the latest version of the proposal for a new Stability and Growth Pact of the European Union, as accepted by the European Parliament in April 2024. After summarising the main changes, the macroeconomic evaluation attempts to gauge whether the main goal of the Pact - reduction of the public debt level in high-debt countries- is likely to be achieved or missed due to counter-productive austerity. Four scenarios show the trade-off between debt reduction and the growth of primary public expenditures. Overall, the new Pact includes some advantages, but it is unlikely to reduce high debt down to 60 per cent of GDP and at the same time grant fiscal leeway for more infrastructure and climate policy. Milder but longer austerity will be a heavy burden for the future - stretching the pain seems to be the guideline. It might turn out to be more pain than gain