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.
Urban development funding has a variety of effects
DIW Econ conducted a study on behalf of DIE STADTENTWICKLER based on data from SOEP and the INKAR database. The study examined living conditions in urban development areas and the impact of subsidies on the construction and renovation of housing.
The construction industry in Germany: Making progress towards a turnaround, but considerable challenges remain.
The construction industry is at a turning point. After five years of declining construction volumes, a trend reversal is finally on the horizon for 2026. However, the road to recovery will be rocky. Although growth of two per cent is forecast, there is a significant discrepancy between the urgent demand for construction and the actual construction output. The housing shortage is particularly acute in cities, where infrastructure is clearly deteriorating. What needs to happen to get the construction industry back on track and remedy the housing shortage? Our joint report with DIW Berlin sheds light on current developments and urgent areas for action that will shape the future of the construction industry, as well as the necessary measures to address the most pressing challenges.
The economic power behind housing
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 state of Baden-Württemberg on the road to climate neutrality
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.