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Erik Gawel and Kristina Bernsen

Although the traditional approach in water resources management is to address water-related scarcity problems at the local or regional scale, some see water as a global resource with global drivers and impacts, supporting the argument for a global governance of water. If water is not appropriately priced, or if “poor water governance“ creates adverse incentives for resource use in countries that export “virtual water,“ then increased demand from the world market may lead to the overexploitation of water or increasing pollution. Is this reason enough for a global governance of regional water-scarcity problems? On which scale should water-management problems actually be addressed, and can global action compensate for local and regional governance failure? The paper argues that compensating globally for regional governance failure could cause “problems of fit“ and present severe downside risks.

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Erik Gawel, Sebastian Strunz and Paul Lehmann

The German energy transition repeatedly faces harsh critiques questioning its economic and environmental merits. This article defends the energy transition and argues that Germany has chosen an economically efficient and particularly forceful approach to securing a sustainable energy supply. Though current expenditures are high, the long-term benefits of transforming the energy system to a renewables-based system are likely to outweigh present investment costs. Furthermore, support policies for renewables are not redundant-as some critics claim-but instead complement other policy instruments, such as the emissions trading scheme. This article also addresses the motives behind the discrediting attacks on the German energy policy regime. Defensive actions by beneficiaries of the former energy market structure are only to be expected, but the attacks from liberal economists are astonishingly fierce.