Impact of Germany’s Phase Out of Coal Power Plants on Developing Countries

Stefan Vögele and Kristina Govorukha

Chapter 15 in Climate and Development, 2021, pp 465-499 from World Scientific Publishing Co. Pte. Ltd.

Abstract: In this chapter, we analyze the effects of a phase out of hard coal-fired power plants in Germany on developing countries. Besides impacts on economic factors, we take a closer look at related social and environmental impacts. The impacts are assessed by applying the list of Sustainable development goals (SDGs) of the UN. This enables us to assess the broad range of indirect effects in a systematic way. As key developing countries, which are affected by a phase out of coal-fired power plants in Germany, we identified Colombia and South Africa as important coal suppliers. We also pay attention to China as a supplier of PV modules that will partially substitute coal-fired power plants. Our study shows that coal mining is to a great extend linked with environmental and social problems. Hence, a reduction of mining activities due to phase out of coal-fired power plants could be helpful in reaching SDGs in developing countries. However, since Germany is less important (has relatively small share of countries’ coal exports) for these coal exporting countries, the phase out of coal-fired power will not have significant impacts on their mining industries, as well as for the PV industry of China. Hence, the ancillary effects of the phasing out policy in Germany on SDGs in developing countries will be low.

Keywords: Climate Change; Global Warming; Sustainable Development; Development; Economic Growth; Adaptation; Paris Agreement; Social Conflict; Extreme Events; Integrated Assessment Model; Climate-Economic Liveability; Sustainable Development Goals; Social Welfare Functions; Intergenerational Transfers; Water Scarcity; Natural Resources; Migration; Climate-Migration Relationship; MENA Region; Renewable Energy; ICT; Energy Efficiency; Carbon Dioxide Removal; Net Negative Emissions; Co-Benefits; Afforestation; Reforestation; Mangroves; Developing Countries; Blue Carbon Projects; Ecosystems; Blockchain Technology; Illegal Logging; Mining Industries; Power Plants; Environmental Economics; Resource Economics; Climate Change Economics; Climate Policy; Mitigation (search for similar items in EconPapers)
JEL-codes: Q5 Q54 Q56 (search for similar items in EconPapers)
Date: 2021
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