german pharmaceutical companies
Higher employment rates and more money in the pension fund
Two DIW studies on the partial retirement scheme and raising the normal retirement age: simulations show positive employment effects and fiscal implications A normal retirement age that increases relative to the rise in life expectancy after 2030 could help keep the funding of the statutory . more
Nuclear power unnecessary for climate protection – there are more cost-efficient alternatives
The world needs to continue working to protect the climate this is generally undisputed. However, there is no agreement on which technologies should be used to decarbonize the energy sector. Many international scenarios still assume a relevant role for nuclear power in the future. However, a . more
DIW Economic Barometer November 2017: euphoric expectations signal a strong end to the year
The economic barometer of the German Institute for Economic Research (DIW Berlin) once again reports exceptionally strong growth in the final quarter of 2017: the index level increased to 113 points. GDP should thus continue to outperform at a read of 0.8 percent in the fourth quarter. D expenditure of German companies abroad has more than doubled compared to 2003. At the same time, their domestic investments are increasing sharply The majority of the investments can be attributed to the automotive engineering and pharmaceutical industries The share of . more
Partial Retirement: Effects on Employment and Implications for Government Budgets
The demographic change is posing many challenges for government budgets. In the face of a shrinking work force, keeping the number of workers and thus pension contributors at the highest possible level is a key economic policy goal. This could be achieved if people retire from the work force later in life. Partial retirement, the option to work part-time while drawing a pension before reaching the normal retirement age, could create the necessary conditions for reaching this goal. The impact of partial retirement on employment will be simulated below. The results show that unrestricted access to partial retirement can lead to an increase in employment volume and generate positive fiscal effects. The effects on employment are especially positive when the entry age for partial retirement coincides with the early retirement age of 63. Flexible retirement, which came into effect in 2017, allows people to receive a partial pension payout before the normal retirement age while still working. However, the computation behind the amount of pension payouts during flexible retirement is very complex. In addition, the limit to pension payouts in flexible retirement could be considered too strict. This negatively affects the attractiveness of the flexible retirement option. Furthermore, work hours can only be reduced in the case of flexible retirement if the employer agrees. If an evaluation of flexible retirement shows that few people make use of it, policymakers would have to simplify the rules regarding additional income and consider a statutory right to partial retirement before the normal retirement age, with possible exceptions for small businesses.
Nuclear Power Unnecessary for Climate Protection—There Are More Cost-Efficient Alternatives
The world needs to continue working to protect the climate—this is generally undisputed. However, there is no agreement on which technologies should be used to decarbonize the energy sector. Many international scenarios still assume a relevant role for nuclear power in the future. However, a study by the German Institute for Economic Research shows that the Paris climate protection target— limiting global warming to below two degrees—can be achieved inexpensively without nuclear power. The results of a global energy system model indicate that no new nuclear power plants have to be built in order to meet the global climate target. It would be cheaper to use a combination of renewable energy and energy storage systems.
Incentives for the Long-Term Integration of Renewable Energies: A Plea for a Market Value Model
Due to increasing shares of renewable energies in electricity production, the cost-effective system integration of these installations is becoming more and more important. Technologies and locations are viewed as system-friendly when they are more cost-efficient and easier to integrate because they, unlike other installations, produce at times when electricity is more valuable. This report shows that project developers of renewable energies in Germany have had limited incentivesto invest in system-friendly installations. A market value model is derived based on five criteria for the further development of support instruments. This model creates appropriate incentives for investments in system-friendly installation while simultaneously avoiding additional financial risks for project developers. With such an approach based on a market value factor, the support costs for renewable energies as well as for levies in the overall electricity system and for the energy transition in general can be minimized over the long-term.