Topic Resource Markets

Oktober News

On October 10, 2023, the research project MINDSET_Clean_H2 organised a workshop about the hydrogen economy in Germany and France at TU Munich. Researchers as well as stakeholders from industry participated. Franziska Holz and Lukas Barner represented the project team from DIW Berlin and presented recent research results on the availability of water for electrolysis in Germany. The research project ...

The Effects of Trade on CO2 Firm-Level Emission Intensity: Evidence from German Microdata

This paper examines how firms' CO2 emission intensity (CEI) responds to trade shocks. Changes in market conditions, such as trade shocks, are believed to drive specialization toward core products, foster innovation, improve productivity, and influence abatement choices. I develop a unified framework that decomposes within-firm changes in CEI into within- and between-product components and...

Non-monetary factors influence heating energy consumption much more than price increases do in the short term

Are M&As Spurring or Stifling Innovation? Evidence from Antidiabetic Drug Development

This paper provides empirical evidence on which M&A deals spur innovation, and which stifle it. To do so, we consider not only the product market position of the acquiring firm, but also the position of both target and acquirer in the technology space. Focusing on the antidiabetic drugs market, our dataset tracks the lifecycle and patenting of all individual antidiabetic projects in development between ...

Public Communication and Collusion: New Screening Tools for Competition Authorities

Competition authorities increasingly rely on economic screening tools to identify markets where firms deviate from competitive norms. Traditional screening methods assume that collusion occurs through secret agreements. However, recent research highlights that firms can use public announcements to coordinate decisions, reducing competition while avoiding detection. We propose a novel approach to screening ...

Nuclear Fission, Natural Gas, Geothermal Energy, Nuclear Fusion: The Future Role of Baseload Power Plants

An Advanced Reliability Reserve Incentivizes Flexibility Investments while Safeguarding the Electricity Market

To ensure security of supply in the power sector, many countries are already using or discussing the introduction of capacity mechanisms. Two main types of such mechanisms include capacity markets and capacity reserves. Simultaneously, the expansion of variable renewable energy sources increases the need for power sector flexibility, for which there are promising yet often under-utilized options on ...

Contracting Matters: Hedging Producers and Consumers with a Renewable Energy Pool

Renewable energy installations are rapidly gaining market share due to falling technology costs and supportive policies. Meanwhile, the energy price crisis in 2022 shifted the energy policy debate toward the question of how consumers can better benefit from the low and stable generation costs of renewable electricity. Long-term contracts for renewable energy to link producers and consumers are an option ...

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. ...

On Strategic Behavior in Electricity Markets during the 2022 Energy Crisis: An Ex-post Analysis for the German Power Sector

During the 2022 energy crisis, electricity prices across Europe have risen to unprecedented heights. In a case study for Germany, this work investigates to which extent price spikes can be attributed to changes in upstream commodity prices, and to which degree strategic behavior by generators may have contributed to the situation. Electricity markets are more prone to the effects of such behavior if ...