The energy transition is a powerful economic driver for the Hanover region. A study by DIW Econ shows that an ambitious energy transition by 2035 would result in additional investments of around €24.9 billion, €14.3 billion of which would directly benefit the Hanover region. This could generate around €9.5 billion in gross value added and create an average of around 4,100 jobs. Local budgets would also benefit significantly, with projected additional tax revenues of around €470 million.
These results demonstrate that climate protection and economic success go hand in hand. By consistently implementing the energy transition and making ambitious investments, the Hanover region can further expand its pioneering role on the path to achieving climate neutrality by 2035.
The economic effects in four sectors were examined: electricity; transport; buildings and heat supply; and industry. Almost 60% of the investments remain directly in the region, strengthening the crafts sector, the construction industry and regional companies in particular. In addition to the measurable economic effects, the energy transition also strengthens innovation, location attractiveness, security of supply and regional value creation.
Official portal of region of Hanover
Residential construction has been a major contributor to Germany’s economic growth in recent decades. However, current forecasts point to a worrying decline in the real volume of residential construction, which could have far-reaching consequences. This development underlines the urgent need to strengthen residential construction as a driver of economic recovery.
The government of Baden-Württemberg has set itself the goal of making the state carbon-neutral by 2040. However, to meet this challenge, transformation efforts on an unprecedented scale are required. On behalf of the SPD parliamentary group in Baden-Württemberg, DIW Econ has analysed how much CO2 emissions need to be saved each year and what measures need to be taken in the buildings, transport, electricity and heat generation sectors to reach the goal of climate neutrality in 2040 by 2030.
The recent geopolitical developments have again shown how geographic concentration of fossil fuel production creates global dependencies and affects economies worldwide. Among the G7 countries, the European states are the most dependent on fossil gas supplies from Russia.
DIW Econ’s recent study “G7 Gas Reduction Plan”, commissioned by Greenpeace, on the occasion of the G7 Summit under the German Council Presidency, presents potential climate-neutral technology options implemented by coordinated multilateral action of the G7 states until 2025 to support a reduction of fossil gas demand in the G7 states. The analysis focuses on carbon-neutral options without substituting gas with other fossil fuels or biofuels or significantly reducing industrial production.
The construction industry is an essential pillar of the German economy, both in terms of its contribution to gross domestic product and overall employment. Due to the observed increase in the average age of business owners, it can be assumed that more and more entrepreneurs will be affected by succession planning in the coming years. However, to date, there has been no estimate or survey that provides reliable information on how many companies in the construction industry will be faced with succession planning in the coming years and what economic effects can be expected as a result.
To close this research gap, DIW Econ and the Institut für Mittelstandsforschung (IfM) Bonn were commissioned by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) to investigate the business succession situation in the construction i