Our methods
No single discipline can solve a global challenge by itself. At the Global Challenges Lab, researchers from economics, econometrics, operations research, and data science bring their own methods to the table: econometric models, economic simulations, optimization, machine learning, and surveys. Each is a lens that brings one part of a problem into sharp focus. Together, they show the whole picture.
What happens in one place often affects neighboring places. We develop new estimators and build statistical models that estimate how strongly effects pass between firms, regions, countries, and markets, and how far they reach.
Example questionWhen new exporters set up in a region, do nearby firms start exporting too?
Some risks grow over decades. But their consequences can arrive suddenly, as is the case with climate tipping points. We build dynamic economic models of the climate, nature, and financial markets and solve them numerically. They show what such risks cost society and how financial markets price them today.
Example questionWhat does one extra ton of CO₂ cost society once the risk of sudden climate damage is counted?
Policies work through people’s decisions. We use choice experiments, surveys, and travel data to estimate what drives the choice of products, transport modes, and services. We then use these estimates to design offers and services that match how people actually choose.
Example questionWhat matters more to car buyers, a lower price or a charging station close by?
Many sustainability questions are planning problems at heart. We translate them into mathematical optimization models and develop algorithms that either solve them exactly or find very good solutions fast. Applications range from delivery fleets and warehouses to vertical farms.
Example questionHow should an electric delivery fleet route and recharge to serve every customer at the lowest cost?
Regions develop in very different ways, and public support can help steer where they go. We analyze how economic regions, technology regions in particular, emerge and change, how firms and other organizations cooperate within them, and how sustainability and environmental protection can become part of their development. To do so, we combine econometrics, spatial data analysis, network analysis, and computer-based text analysis. We use the results to design and evaluate funding programs that shape regions, from rural areas to the cross-border Euregio around Aachen.
Example questionDo regions develop better when funding follows a joint regional strategy rather than single projects?
The energy transition depends on technology, rules, and public acceptance. We review how countries apply common European rules, survey residents regarding new energy concepts, and compare countries using long-run data. We also model energy systems and assess technologies over their full life cycles.
Example questionHow reliable should our electricity supply be, and how do European countries decide on that?
Germany and South Africa both still depend heavily on coal, and in both, the costs of the energy transition can fall hardest on those least able to bear them. Together with the University of Pretoria, we study the social, economic, and political paths of the transition in both countries. We develop indicators that measure how just a transition is, analyze regional disparities and the opportunities raw materials offer, and derive business models and policy recommendations.
Example questionHow can both countries phase out coal without leaving low-income households behind?
The Economics of Sustainability
Economies, societies, and ecosystems are closely linked, so a policy that helps in one place can cause harm in another. We build quantitative models of these socio-ecological systems and use them to assess how political choices affect social, economic, and ecological outcomes. Our focus is the bio-based circular economy and the links between food, energy, and water.
Example questionWhat happens to jobs, land use, and emissions when a region replaces fossil raw materials with bio-based ones?
Some of us work with values that no market sets directly: the cost of a ton of carbon, what a buyer would pay for faster charging, or the cost of a power cut. Some of us estimate these values. Others use them as inputs to planning models. We make these values consistent across methods.
Each of our contributors conducts climate and energy research, but at different points in the chain: investment, markets, consumers, fleets, bio-based resources, and security of supply. Together, this research covers much of the path from investment decisions to everyday use.
Words like risk, scenario, or robust mean different things to different disciplines. We take care to spell out what we mean so that results from one field can be used in another.
Do you have a question that no single method can answer?
We welcome partners from industry, policy, and civil society who want to test our methods on real problems. Students can join us through theses, projects, and courses. Researchers working on related topics can team up with us on joint projects and proposals, co-taught seminars, or co-supervised theses.
Applied Econometrics
Computational Economics
Data and Business Analytics
Computational Logistics
Economic Geography
Energy Systems Economics
SAGE-BRIDGE