How large is geographic leakage resulting from place-based environmental policy? We study this question in the context of the landmark US Clean Air Act Amendments. Our paper makes three primary contributions. First, using modern event-study tech- niques and confidential US Census data, we revisit seminal results characterizing the effects of this environmental regulation on directly regulated...
We study the political consequences of energy price shocks for households, using electricity price increases in Germany during the 2022-2023 energy price crisis as an example. Building on original four wave panel survey data, we exploit plausibly exogenous and staggered variation in timing of electricity instalment increases generated by the German billing system. We find that higher...
As part of the DIW-OECD Industrial Strategy Dialogues, this event will explore how strategic international partnerships can accelerate the decarbonisation of the steel sector. Steel is a cornerstone of modern economies but also one of the most emissions intensive industries — an issue made even more urgent by the current energy crisis, which has exposed the vulnerability of carbon intensive...
Studies have identified the benefits of locational marginal pricing of electricity for consumers. The full remuneration of energy balancing, congestion management, and system services through one market price unlocks demand side flexibility. This can reduce the need for additional generation capacity and grid expansion and save system costs. Furthermore, decentralized decision making based on...
This paper studies how firms’ CO2 emission intensity (CEI) responds to trade shocks. I develop a unified framework that decomposes within-firm changes in CEI into three components: shifts in (i) the product portfolio, (ii) factor-neutral physical productivity (TFPQ), and (iii) CO2-abatement technology, defined as factor-augmenting productivity that reduces emissions relative to other inputs. The...
This presentation will provide an overview of the current energy political landscape in the United States under the current Trump Administration with a focus on nuclear power projects. This will include an overview of recent policy changes and the implications for reactor restarts, SMR (small modular reactor) projects, and their useability for data centers.
