Environmental targets, economic effects and social impacts– How sustainable is the German way from a fossil to a renewable energy supply system?

The German government is keen to provide international leadership in climate protection and the establishment of a renewable energy supply system. Therefore in September 2010 an energy strategy, the Energy Concept, was approved which required a fundamental restructuring of the German energy supply system during the period until 2050: the main objective is a comprehensive replacement of fossil by renewable energy sources. At the same time affordable energy prices for consumers and a high level of economic competitiveness and development have to be maintained. Thus, the establishment of a sustainable energy supply system involves environmental, economic and social issues, which have to be considered simultaneously. This study analyses the environmental, economic and social impacts of the nuclear phase out, the abolition of the hard coal subsidies, the reduction of energy generating capacities of brown coal and the simultaneously increase of renewable energy on the economy in Germany. The analyses are conducted using a comparative static single country Computable General Equilibrium (CGE) model. The model is an extension of the STAGE model that encompasses a detailed energy production and CO2 emissions module and nested utility functions. The model is calibrated with a new Social Accounting Matrix (SAM) for Germany, which includes disaggregated data for the energy sectors and households, and detailed satellite accounts for energy and emissions.