Standard IAMs typically use CRRA welfare, where a single curvature parameter jointly governs intergenerational weighting and interregional equity, so comparative statics in “inequality aversion” necessarily change discounting. I implement Fehr–Schmidt (FS) inequality aversion in the RICE model to separate directional interregional equity (envy and guilt) from intergenerational weighting, with an...
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...
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...
Meeting summaries October 2025, online: Hedging Locational Price Risk under LMP – Experiences from North America August 2025, Berlin: Is electricity market reform necessary? July 2025, Brussels: Local Market Places: market design options June 2025, online: Congestion Management with Locational Marginal Pricing – First-Hand Experience from North America March 2025: Local Marketplaces June 2024, Berlin: ...
Key publications Events The Climate Friendly Materials Platform analyses the transformation of basic material production and use to achieve carbon neutrality. It brings together researchers from leading think tanks and universit ies to enhance Europe’s analytic understanding of how individual instruments can be implemented and combined into a coherent policy package. Activities are coordinated ...
Individuals hold normative ideas about the just distribution of goods and burdens within a social aggregate. These normative ideas guide the evaluation of existing inequalities and refer to four basic principles: (1) Equality stands for an equal distribution of rewards and burdens. While the principle of (2) need takes individual contributions into account, (3) equity suggests a distribution based ...
