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Regional Industrial Effects in Germany from a Potential Gas Deficit

Author

Listed:
  • Lehmann Robert

    (ifo Institute Munich and CESifo, Munich, Germany)

  • Schult Christoph

    (Halle Institute for Economic Research, Halle (Saale), Germany)

Abstract

We estimate potential regional industrial effects in case of a threatening gas deficit. For Germany, the reduction leads to a potential decrease in industrial value added by 1.6 %. The heterogeneity across German states is remarkable, ranging from 2.2 % for Rhineland-Palatinate to 0.7 % for Hamburg. We emphasize the need for regional input-output tables to conduct economic analysis on a sub-national level, particularly when regional industrial structures are heterogeneous. The approximation with national figures can lead to results that differ both in magnitude and relative regional exposure. Our findings highlight that more accurate policy guidance can be achieved by improving the regional database.

Suggested Citation

  • Lehmann Robert & Schult Christoph, 2024. "Regional Industrial Effects in Germany from a Potential Gas Deficit," German Economic Review, De Gruyter, vol. 25(3), pages 147-163.
    • Handle: RePEc:bpj:germec:v:25:y:2024:i:3:p:147-163:n:1003
    DOI: 10.1515/ger-2024-0017
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    More about this item

    Keywords

    gas shortage; input-output analysis; regional economic impacts; Germany;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R19 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Other

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