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Social-ecological economic policy in and after the Corona crisis
The study, commissioned by the Federal Ministry, looks at the dovetailing of economic and climate policies in response to the global recession triggered by the Corona crisis. GDP is expected to decline by over 6% and the general government debt ratio is expected to increase to about 70-80% of GDP. Thus, a structural change towards climate neutrality is to be expanded within the framework of the economic stimulus package with a "golden rule" that includes debt financing of sustainable future investments.
Furthermore, the expansion of support and investment programmes, the strengthening of the development towards more climate-friendly lifestyles and production methods through appropriate price signals and the securing of expenditure for climate policy are to be the focus in the medium and long term.
The economic stimulus measures 20/21 proposed in the research project are of the order of 100 billion euros and aim to set climate policy accents in classical economic policy. The above-mentioned economic stimulus measures are basically applied swiftly, in a targeted, temporary and transformative manner. In 2020/21, they include a one-time supplement to child benefit, special depreciation allowances for investments in measures to increase energy efficiency and the protection of municipal finances and investments with the help of a protective umbrella..
The investment backlog in the particularly climate-relevant sectors of transport, heat, energy and industry must be countered with a massive expansion of climate protection measures. In the transport sector, this can be done by expanding the rail networks and local public transport. In order to promote electrification and thus sustainable mobility, which supports the economy, more measures must also be taken in this sector. The heating sector should be accelerated with further incentives for energy-efficient building renovations and the switch to renewable energy sources. In the energy sector, the focus is on strengthening the wind industry and the expansion of photovoltaics. CO2 differential contracts, which provide an investment incentive for climate-friendly production processes, favour a development in the right direction of the industry.
The framework condition for the ecological transformation described above is an adjustment of the CO2 price per tonne. This should be gradually increased to 100 euros per tonne of CO2 by 2030..
Sou can find the complete scientific document "Social-Ecological Economic Policy in and after the Corona Crisis" here. here.
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