Publikationen der Abteilung Klimapolitik

The Economics of the EU ETS Market Stability Reserve: Introduction

FTR Allocations to Ease Transition to Nodal Pricing: An Application to the German Power System

A shift from zonal to nodal pricing improves the efficiency of system operation. However, resulting price changes also shift surplus across generation and loads at different locations. As individual actors can lose, they might oppose any reform. We explore how allocation of financial transmission rights can be used to mitigate the distributional impact. The fundamental effects with regard to reference ...

Stationary Changes in Long-Run Energy Commodity Prices

Situated at the intersection of the literatures on speculative storage and non-renewable commodity scarcity, this paper considers whether changes in persistence have occurred in long-run U.S. prices of the energy commodities crude oil, natural gas and bituminous coal. We allow for a structural break when testing for a break in persistence to avoid a change in the stochastic properties of prices being ...

Strategic Bidding in Multi-unit Auctions with Capacity Constrained Bidders: The New York Capacity Market

This article employs a simple model to describe bidding behavior in multi-unit uniform price procurement auctions when firms are capacity constrained. Using data from the New York City procurement auctions for power generating capacity, I find that firms use simple bidding strategies to coordinate on an equilibrium that extracts high rents for all bidders. I show theoretically and empirically that ...

Sectors under Scrutiny: Evaluation of Indicators to Assess the Risk of Carbon Leakage in the UK and Germany

One of the central debates surrounding the design of the European Union Emissions Trading Scheme is the approach to address carbon leakage concerns. Correctly identifying the economic activities exposed to the risk of carbon leakage represents the first step in mitigating the risk effectively. This paper assesses the robustness of the quantitative assessment criteria used by the European Commission ...

The Three Domains Structure of Energy-Climate Transitions

This paper argues that the development of energy systems rests on a combination of three different domains of socio-economic processes and associated modes of decision-making. For shorthand these are termed ‘satisficing’, ‘optimising’, and ‘transforming’ domains, with corresponding underpinnings found in behavioural, neoclassical, and evolutionary economics respectively. Each domain operates at different ...

Assessing Energy Price Induced Improvements in Efficiency of Capital in OECD Manufacturing Industries

To assess how capital stocks adapt to energy price changes, it is necessary to account for the impacts on different vintages of capital and to account separately for price-induced and autonomous improvements in the energy efficiency of capital stock. The results of econometric analysis for five manufacturing industries in 19 OECD countries between 1990 and 2005 indicate that higher energy prices resulted ...

From Distribution Networks to Smart Distribution Systems: Rethinking the Regulation of European Electricity DSOs

Distributed energy resources allow for new business models that have the potential to substantially change today's power system functioning paradigm. In particular, these changes pose challenges for distribution system operators (DSOs) and their regulation alike. This article sheds light on missing aspects in current regulation, recognizing DSOs as regulated monopolies, but also as key players along ...

The EU Internal Electricity Market: Done Forever?

Taking a quarter-century to build Europe's internal market for electricity may seem an incredibly long journey. The aim of achieving a Europe-wide market might be reached, but it has involved – and continues to involve – a process subject to many adverse dynamics. The EU internal market may derail greatly in the coming years from the effects of a massive push for renewables, as well as a growing decentralization ...

Responsive Feed-in Tariff Adjustment to Dynamic Technology Development

This paper reviews the adjustments of the feed-in tariffs for new solar photovoltaic (PV) installations in Germany. As PV system prices declined rapidly since 2009, the German government implemented automatic mechanisms to adjust the remuneration level for new installations in response to deployment volumes. This paper develops an analytic model to simulate weekly installations of PV systems of up ...