Category: economics

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Electricity generation

On a global scale, electricity generation based on wind and solar has been growing quite fast since the year 2010-2024. Wind and solar have outpaced nuclear energy production as well as the stagnant sector of water based energy production. The Global Electricity Review by EMBER provides the statistical evidence for this evolution in 2025.
The interesting evolution arises mainly because countries with a lower level of GDP have invested heavily in solar and wind energy as this form of decentralized energy production does not need heavy investments in network infrastructure. Countries with larger population growth can keep up with electricity generation according to local needs. Local production and consumption become a key in strategies of local development. The finding that households in low-income countries use on average only 1 kWh per day is an amount that 2 small solar panels can already cater for (example image below).
Countries next to the equator have relatively constant days of 12 hours daylight across a whole year. The feasibility of no-carbon sustainable energy production is driving global growth in this sector.

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Trust or not to trust

… that is the question. The social science research on trust, distrust or corruption is expanding rapidly. As in some other fields of research the increase in research itself becomes an issue of trust in science as the uncontrolled use of AI has produced an inflation of pseudo-scientific papers as well (Link). However, the finding by Spadaro et al. (2020) that interpersonal trust (trusting beliefs and behavior) is influenced by a general feeling of security as well as trust in institutions is supported by experimental and interview-based research.
There are still many challenges to the research in this field. The “feeling of security” has an overall component, but also several subcategories like the objective or subjective feeling of job security, which is dependent on national and collective systems of employment protection legislation. Economic security or security of a sufficient retirement income might be at times considered more important than (in-)security in cities or the countryside. Differences of the mechanisms by gender and age have to be studied in detail as well, which necessitates large data collections on the issues. Churches that used to be considered as trustworthy institutions or the police forces have been accused of abuses of the high trust placed in them in the last few years. These 2 examples demonstrate that trust itself is a dynamic issue with ups and downs over time, rarely constant over time. Game theoretical considerations add further to the view that trust might be used as a strategy just like economic power. (Image: Cathedrale de Meaux) 

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Fossil costs

On 2026-3-5 it has become sufficiently clear that the USA and Israel attacks to topple the terror regime in Iran have repercussions across the world markets of fossil fuels. 1973 and 1979 had told us already the lesson that a reliance on fossil fuels like oil and gas, which is produced in only a small number of countries, can disrupt energy supplies drastically. 50 years later we are much less vulnerable to supply shocks due to the stronger reliance on renewable energy sources. The supply shortages are only likely to happen, but energy suppliers are fast to cash in on these expected shortages. Prove of evidence that energy markets are driven more by expectations than actual availability of fuel stocks.
The advertisement of a Belgian recycling company “Powered by sunshine, driven by electricity” is a perfect summary of how to deal with shortages of fossil fuels (MCA recycling in Brussels, Image: former Brussels stock exchange).

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Short circuit electrification

The electrification of the automotive industries is well under way. However, there is still the resistance of a few warriors from a village called “Gaulle” that fight the imperial forces that dominate these markets. The abundance of cars with batteries and electricity-based traction keeps growing, More utility vehicles shift over to this technology as well. With India and China making significant shifts in this direction, the market has made a significant technological shift until the beginning of 2026. The share of hybrid or solely electric power in cars has risen sharply, but a small segment (10% of diesel engines seems to survive or is only slowly petering out in the coming decade. The publication by Béla Galgóczi (editor) demonstrates the challenges this poses to the companies, their employees and the automotive sector as a whole, as it comprises a large amount of employment and technologies in the traditional supply chain as well. The need for a substantial and costly shift has started, but the downsizing of companies, as electric cars need far fewer pieces than conventional ones, could offer an opportunity, if the skilled employees can be converted to other productive use.
A single sector study offers a lot of “deep” insights into a sector, but the opportunities and openings in other not to distant sectors tend to be overlooked. The European sovereignty in the area of military, standardised technology, which is also still based on many precision and metal components might come as a rescue not only to Ukraine, but to Europe as a whole.

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Rule and divide leadership

We have known the leadership style, which has been coined as “rule and divide”, at least since the Roman imperial period.  In conquered countries it was a strategy to rule by way of creating divides between peoples or regions within a conquered country. The struggle for power within a country is likely to avoid that a powerful opposition to the occupant can build up. What is well researched in the history of international politics, has also been applied to the realm of management strategies. Anthony Galluzzo demonstrates that the strategies of management often attempt to split the workforce in at least 2 different camps in order to better keep employees and their trade unions under some sort of control. For society as a whole, so-called dual labor market theories have hypothesized the existence of such management strategies since the 1980s. With the labor practices in food and grocery deliveries as well as in taxi services such management strategies are applied again. “Old wine in new bottles”, but still seems to sell and catch on. (Image: extract from Butler Charles, 1637, Monarchia faeminina)

 

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Collaborative Leadership

There are many reasons to praise collaborative leadership. Work climate, learning climate and innovation in teams and organizations benefit a lot. Absenteeism from the workplace is a proven and close correlate of hierarchical leadership styles. The theory and empirical evidence is rather clear in this respect, however the effective practice of collaboration among a leadership team is hard to sustain. Not only the ways to reach leadership positions is mostly rewarding tough elbows on the way to the top, the multiple rounds in the competition for top positions tend to train the toughest strategic  behavior. A return to more cooperation and collaboration appears to be a real challenge for persons that eventually arrive in top management positions in politics or business. Administrative science or organization science deserves much more attention especially if we are moving into the age of multilateral international institutions and multinational corporations and organizations. (Image: Les quatre parties du monde soutenant la sphère céleste, 1872, Musée d‘Orsay Paris).

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Time in Leadership

We identified already the importance of monitoring in democracies. The same theoretical considerations hold for an analysis of leadership irrespective of the organizational context, be it a government, governmental organization, non-governmental organization, association or private enterprise. In democracies, it is in most cases a constitutional rule that leadership positions are limited in time and it is “best practice” to have clear rules about renewable terms of office as well.
In private enterprises this seems to be of lesser importance, but the issue deserves more close scrutiny, not only by shareholders in case of a shared ownership or stocks. A particular person in the leadership position might be a good match for a company at times of growth or scaling of a start-up, but the same leadership is less likely to be an equally good match for the period of eventual stagnation or shrinkage.
Therefore, as an alternative hypothesis it might be wise to adopt leadership rules similar to filling leadership positions with politicians. Fixed-term and 1 renewal could be worth testing at the leadership level (like in presidential republics, USA or France), even if this does not preclude close monitoring of leadership processes. As a starting point for empirical research, Vogel, Raes, Bruch (2022) offer a toolkit to assess organizational energy and leadership trajectories. Learning from democracies as well as democratic procedures might be a worthwhile leadership model to follow. (Image: ceiling painting in chateau  Vaux le Vicomte)

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Regulation and bureaucracy

Economists will celebrate 55 years of the theory of regulation pioneered by George Stigler, which was published in 1971 in 2026. The basic question asked at the time and today is: why do we have regulation? The pubic choice and political economy answer of Stigler (1971) and many scholars after him, is that the industry of a specific sector will acquire the regulation or the public interest in this regulation and, subsequently, the industry will design and operate it to its benefits. At least, this is in a nutshell my summary of the literature inspired by Sam Peltzman (2021, p.20). If we add to this the perspectives of theories of bureaucracy (Sharma, 2020), we become skeptic of an efficient implementation of regulations by governments or governmental agencies.
In the field of pharmaceutical applications, it is the “European Diabetes Forum” which calls for a regulation on reliable “glucose monitoring devices” with industry and user backing. Of course, this asks for bureaucratic control of the regulation, imports and markets of such devices later on. The one (regulation) is rarely coming without the other (bureaucracy). It is about time to acknowledge this for societies as a whole as well.

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Climate, time and space

For statistical analyses is good practice to not only study averages, but whole distributions over time and space. Climate change is an obvious candidate to apply such a methodology. The analysis of US data on temperature changes across quantiles of the distribution in 48 regions over 70 years finds distinct patterns of temperature changes. The authors María Dolores Gadea Rivas and Jesús Gonzalo published their findings in PLOS Climate, which showed different patterns of climate warming. Taking into account that it is not only average temperatures that may shift, but only the lower winter temperatures or the warmer summer peaks, they find overall 84% of the regions experienced a statistically significant warming effect. Whereas a higher summer peak is commonly perceived as a climate warming problem, a warmer winter usually is less associated with climate change. This leads to an overall misinterpretation or lower perception that climate warming is and has been happening over the last decades. With yellow daffodils on 2026-2-8, usually a winter day in Brussels (see image), the warm winter days are also evidence that global warming is well under way all year round and across the planet.  

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Time and power

Who commands our time? Who commands your time? Both macro- and micro-level analyses of power relationships related to time need to be investigated. Time policies are most obvious when it comes to regulations of working time, permissions of business hours or so-called bank holidays. On the micro or individual level, it is often the question of who spends more time on work, care and repair. Hourly wage rates have been claimed by economists to guide or decide societal time spent on one or the other activity. An extension of this rationale with an overriding objective of happiness might considerably change the impact of power relationships on time. Longer time perspectives on health shall also shift the view of how power impacts the time spent on various activities. Time sovereignty is a precious value in its own right.
The power play between employers and employees keeps shifting the balance, albeit the overall trend over the last 100 years has been towards a reduction of working time and increased time sovereignty of employees as a form of democratization of working life. This constitutes one form to share the benefits of productivity gains over decades as well. (Image clock on Berlin City Council building on labor day 2025).