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Industrial Demand Response: How Network Tariffs and Regulation Do (Not) Impact Flexibility Provision in Electricity Markets and Reserves

Incentives for industrial loads to provide demand response on day-ahead and reserve markets are affected both by network tariffs, as well as regulations on the provision of flexibility in different markets. This paper uses a numerical model of the chlor-alkali process with a storable intermediate good to investigate how these factors affect the provision of demand response in these markets. We also ...

Who Is Bowling Alone? Quantile Treatment Effects of Unemployment on Social Participation

This article examines heterogeneity in the effect of unemployment on social participation. Whereas existing studies on this relationship essentially estimate mean effects, we use quantile regression methods to provide a broader and more complete picture. To ac-count for the potential endogeneity of job loss, we estimate quantile treatment effects (on the treated) based on entropy balancing and focus ...

The ECB is sending a strong signal that now also governments need to act more decisively

DIW president Marcel Fratzscher comments today's announcements by the ECB as follows:

Migrant Fertility in Germany and the Eastern Enlargement of the EU

This paper uses data from the Migrant Samples of the German Socio-Economic Panel to study the fertility behaviour of women who migrated to Germany between 1990 and 2015. Special emphasis is placed on the large groups of migrants who have moved to Germany from Central and Eastern European (CEE) countries since the 1990s. We find that CEE migrants had higher first birth, but much lower second birth rates ...

The Effect of Increasing the Early Retirement Age on Savings Behavior before Retirement

Facing a reduction in pension generosity, individuals can compensate the loss by working longer or saving more. This paper shows that the impact of changes in pension generosity on saving crucially depends on the possibility of prolonging future employment. Exploiting across cohort variation in expected pension wealth induced by a 3-year lift in early retirement age for women born after 1951 in Germany, ...

Technology Policy and Market Structure: Evidence from the Power Sector

We show how policies to trigger clean technologies change price competition and market structure. We present evidence from electricity markets, where regulators have implemented different policies to subsidize clean energy. Building on a multi-unit auction model, we show that currently applied subsidy designs either foster or attenuate competition. Fixed, price-independent output subsidies decrease ...

Price Stability and Climate Risks: Sensible Measures for the European Central Bank

By the end of 2020, the European Central Bank (ECB) will present the results of its monetary policy strategy review. What changes are to be expected and what changes are needed? This report covers two areas of the strategy review. First, alternatives to the current definition of price stability are discussed. Current studies and the practices of other central banks indicate that supplementing the ...

Between Stranded Assets and Green Transformation: Fossil-Fuel-Producing Developing Countries Towards 2055

Climate-related asset stranding refers to the depreciation of assets – such as resource reserves, infrastructure, or industries – resulting from the unanticipated changes, such as the tightening of climate policies. Although developing countries – especially fossil-fuel exporters – may be most concerned by this issue, its analysis in development (economics) has so far been limited.We aim at enhancing ...

Debt – Blessing or Curse? Editorial

Sovereign Debt, the Blessing Aspects and the Implications for the Euro Area

Der Euroraum hat eine einheitliche Währungsbehörde, die die Geldschöpfung regelt, aber die einzelnen Eurostaaten begeben jeweils ihre eigenen Staatschulden. Folglich ist auch die Sicherheit der Staatsanleihen sehr unterschiedlich. Vor diesem Hintergrund wird analysiert: i) die Wechselwirkungen zwischen dem finanziellen und dem realer Sektor; ii) die Rolle von Staatsanleihen als Liquiditätsinstrumente; ...