Topic Enviromental Markets

Der stille Greentech-Boom, der Deutschlands WIrtschaft vorantreibt

Five Essays in Energy System Analysis: Exploring the Dunkelflaute and Unintended Storage Cycling

Die Umstellung von fossilen Brennstoffen auf erneuerbare Energien ist essenziell, um Klimaneutralität zu erreichen. Da das Potenzial steuerbarer erneuerbarer Energien in den meisten Ländern begrenzt ist, werden zukünftige Energiesysteme voraussichtlich überwiegend mit Strom aus fluktuierender Wind- und Solarenergie betrieben. Der Ausgleich zwischen Stromnachfrage und wetterabhängiger, variabler Erzeugung ...

Trade Effects of Direct and Indirect Carbon Pricing Policies

This study examines how policies affecting the cost of using fossil fuels in production influence comparative advantage in the industrial sector. Firstly, we use a fixed-effects gravity model to estimate the export capabilities that determine comparative advantage. Subsequently, using data on direct (carbon taxes, ETS permit prices) and indirect (fossil fuel excise taxes and subsidies) carbon pricing ...

Ensuring Low-Emission Electricity Purchasing Requires a Broader Systems Perspective

Introducing electricity purchase conditions in renewable fuel regulations and carbon accounting is a controversial issue in the US and Europe. We argue that their impact must be assessed considering demand flexibility, local grid conditions, and overlapping policy instruments such as emissions trading schemes and renewable portfolio standards. The introduction of more stringent requirements has a significant ...

Taxonomy Disclosure in the EU: A Useful Framework, Despite Current Challenges

The EU Taxonomy is a classification system for sustainable economic activities and a framework for various regulatory initiatives. Its primary objectives are to enhance transparency, to reduce greenwashing and ultimately to redirect capital toward more sustainable activities. However, since its introduction, market participants have raised concerns about whether the benefits justify the costs. This ...

Locked in a Fossil-Centric System Paradigm: LNG Expansion Impedes Socio-Ecological Transition Toward a Just and Renewable Energy Future

The expansion of liquefied natural gas (LNG) infrastructure in Europe significantly impedes the necessary socio-ecological transformation (SET) required to shift toward a decentralized, 100% renewable energy system (RES). By reinforcing a fossil-centric system paradigm, LNG infrastructure deepens Europe’s dependence on fossil fuels, thereby delaying climate goals and increasing greenhouse gas emissions. ...

Environmentally-Responsible Households: Irresponsible Corporate Lobbying

How do firms respond to greener household preferences? We construct a novel index of environmental willingness to act on the state-quarter level based on Google Trends search data. Relating the index to firm-level information on the U.S. auto- motive sector from 2006 to 2019, we find ambiguous results. On average, firms innovate more in electric, hydrogen, and hybrid (clean) technologies and reduce ...

Impact of ESG Performance on the Cost of Capital in the Energy, Utilities, and Basic Materials Sectors

This paper explores the presence of an environmental, social, and governance (ESG) premium for firms operating in the energy, utilities, and basic materials sectors. Specifically, we examine the influence of ESG performance on firms’ cost of capital in both debt and equity markets. We apply a measure of the ex ante implied cost of equity and the cost of debt to a global sample of over 24,000 firm-year ...

Utilisation of Reactive Ionic Liquids for Energy Storage and Regulation of the Power Grid

Chlorine is an essential feedstock for polymers and pharmaceuticals, with annual production exceeding 100 Mt. Nearly all Cl2 is obtained by chlor–alkali electrolysis, which consumes about 2.58 MWh of electricity per tonne. Renewable energies such as wind and solar would lower CO2 emissions, but electrolysers would then have to adopt to fluctuating, renewable energies while downstream processes still ...

Mitigation versus Competitiveness? Industry Compensation in the European Union Emissions Trading System

Carbon pricing policies are usually combined with compensation for exposed firms to prevent adverse competitiveness effects. In cap-and-trade systems, this carbon cost compensation mostly occurs through free allocation of emission permits. Using an administrative panel of German manufacturing firms, this paper investigates how free allocation in the European Union Emissions Trading System affects firms’ ...