The aim of this policy session is to discuss whether or not the EU ETS needs to be complemented by other sector specific policies for the decarbonization of the industrial sector that go beyond recent reforms. Together with our panelists we would also like to reflect the recent developments in the policy debate on the implications of the COVID-19 crisis and the recovery strategy for the topic. The...
We compare prominent global energy scenarios of organizations and companies. We supplement the analysis with four own scenarios, which were derived from structured analytic techniques in combination with a numerical global energy and resource market model (Multimod). Our paper provides three central contributions: (i) a compact survey of selected outlooks with meta characteristics (conceptual nature, ...
The present study examines the consequences of the planned coal phase-out in Germany according tovarious phase-out pathways that differ in the ordering of power plant closures. Soft-linking an energysystem model with an input-output model and a regional macroeconomic model simulates the socio-economic effects of the phase-out in the lignite regions, as well as in the rest of Germany. The combi-nation ...
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 ...
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 ...
Industrial demand response can play an important part in balancing the intermittent production from a growing share of renewable energies in electricity markets. This paper analyses the role of aggregators – intermediaries between participants and the electricity market – in facilitating industrial demand response. Based on the results from semi-structured interviews with German demand response aggregators, ...
The production of basic materials accounts for around 25% of global greenhouse gas emissions. Existing measures to reduce emissions from industry are limited due to a combination of competitiveness concerns and a lack of technological options available to producers. In this paper, we assess the possibility of implementing a materials charge to reduce demand for basic industrial products and, hence, ...
Coal consumption and production have sharply declined in recent years in the U.S., despite political support. Reasons are mostly unfavorable economic conditions for coal, including competition from natural gas and renewables in the power sector, as well as an aging coal- fired power plant fleet. The U.S. Energy Information Administration as well as most models of North American energy markets depict ...
We analyze the gross welfare gains from real-time retail pricing in electricity markets where carbon taxation induces investment in variable renewable technologies. Applying a stylized numerical electricity market model, we find a U-shaped association between carbon taxation and gross welfare gains. The benefits of introducing real-time pricing can accordingly be relatively low at relatively high carbon ...
German hard coal production ended in 2018, following the termination of subsidies. This paper looks at 60 years of continuous decline of an industry that employed more than 600,000 people, through a case study comparing Germany’s two largest hard coal mining areas (Ruhr area and Saarland). Although predominantly economic drivers underlay the transitions, both provide valuable lessons for upcoming coal ...
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