DIW Berlin: Topic Resource Markets

Externe Monographien

The Political Economy of Fossil Fuel Subsidy Removal: Evidence from Bolivia and Mexico

We study the impact of fossil fuel subsidy removal on presidential popularity using difference-indifference approaches and a stylized theoretical model. Analyzing macro level data for two subsidy removal events in Mexico and Bolivia in the early 2010s, we find evidence of a negative impact on presidential approval. Our theoretical probabilistic voting model predicts that the decline in popularity is ...
Washington D.C.: IMF, 2024, 49 S.
(IMF Working Paper ; 24/230) | Mariza Montes de Oca Léon, Achim Hagen, Franziska Holz
Refereed essays Web of Science

A Multi-Commodity Partial Equilibrium Model of Imperfect Competition in Future Global Hydrogen Markets

Techno-economic studies are investigating procurement costs of hydrogen and related derivatives across various international trade routes. However, the strategic behavior of exporters is rarely considered in this context, despite similar behavior frequently observed in the fossil fuel world and market characteristics indicating some potential. This work introduces a novel techno-economic model of oligopolistic ...
In: Energy 311 (2024), 133284, 17 S. | Lukas Barner
DIW Weekly Report 43/44 / 2024

Carbon Pricing: Swift Introduction of a Climate Dividend Needed, Reduce at Higher Incomes

With the transition from the German national emissions trading system to the European Emissions Trading System (EU ETS2) from 2027, final consumer prices for fossil motor and heating fuels are likely to rise significantly. This increase will affect low-income households more noticeably, as they spend a larger share of their income on energy than high-income households. Existing relief measures, such ...
2024| Stefan Bach, Mark Hamburg, Simon Meemken, Marlene Merker, Joris Pieper
Refereed essays Web of Science

VAT Pass-through and Competition: Evidence from the Greek Islands

We examine how competition affects VAT pass-through in isolated oligopolistic markets as defined by the Greek islands. Using daily gasoline prices and a difference-in-differences methodology, we investigate how changes in VAT rates are passed through to consumers in islands with different market structure. We show that pass-through increases with competition, going from 50% in monopoly to around 80% ...
In: International Journal of Industrial Organization 97 (2024), 103110, 18 S. | Lydia Dimitrakopoulou, Christos Genakos, Themistoklis Kampouris, Stella Papadokonstantaki
Other refereed essays

Energy Asset Stranding in Resource-Rich Developing Countries and the Just Transition: A Framework to Push Research Frontiers

Climate policy will inevitably lead to the stranding of fossil energy assets such as production and transport assets for coal, oil, and natural gas. Resource-rich developing countries are particularly affected, as they have a higher risk of asset stranding due to strong fossil dependencies and wider societal consequences beyond revenue disruption. However, there is only little academic and political ...
In: Frontiers in Environmental Economics 3 (2024), 1273315, 18 S. | Franziska M. Hoffart, Franziska Holz
Refereed essays Web of Science

The Elephant in the Room: How Do We Regulate Gas Transportation Infrastructure as Gas Demand Declines? Commentary

The use of gas will decline dramatically as part of the transition to net zero. Modeling at European levelsshows that by 2050 about 70% less gaseous fuels will be used. Significant regulatory reform is needed todeal with the impacts of this decline on the gas grid.
In: One Earth 7 (2024), 7, S. 1158-1161 | Jan Rosenow, Richard Lowes, Claudia Kemfert
Diskussionspapiere 2090 / 2024

The Evolution of Theories of Harm in EU Merger Control

We discuss the main Theories of Harm in EU merger control and their evolution since the 1990s. We present stylised facts and trends using data extracted from EU merger decisions by natural language processing tools. EU merger policy has adapted over time, both in terms of legislation and theories of harm, as well as in terms of the investigative tools and evidence used. The introduction of the new ...
2024| Tomaso Duso, Lea Bernhardt, Joanna Piechucka
Refereed essays Web of Science

Repurposing Natural Gas Pipelines for Hydrogen: Limits and Options from a Case Study in Germany

We investigate the challenges and options for repurposing existing natural gas pipelines for hydrogen transportation. Challenges of re-purposing are mainly related to safety and due to the risk of hydrogen embrittlement of pipeline steels and the smaller molecular size of the gas. From an economic perspective, the lower volumetric energy density of hydrogen compared to natural gas is a challenge. We ...
In: International Journal of Hydrogen Energy 80 (2024), S. 821-831 | Kornél Télessy, Lukas Barner, Franziska Holz
DIW Weekly Report 16/17/18 / 2024

Electricity Markets Stabilized Following the Energy Crisis; 80 Percent Renewable Energy and Coal Phase-out by 2030 Are Possible

The German electricity market has recovered well from the 2022 energy crisis. Policymakers should now redirect the focus of energy policy to further expanding renewable energy sources. The year 2023 showed that the German electricity supply remained secure following the shutdown of nuclear power plants. It is possible, affordable, and plausible in light of climate policy to cover 80 percent of electricity ...
2024| Mario Kendziorski, Lukas Barner, Claudia Kemfert, Christian von Hirschhausen, Enno Wiebrow
Externe Monographien

Green Innovation Policies

Achieving climate neutrality and energy independence will require the accelerated diffusion ofexisting technologies, further cost reductions, as well as innovation in new technologies.However, climate related frontier innovation, as measured by patent fi lings, has been decliningsince 2012. In contrast, the deployment of existing technologies seems on the rise. The focus ondiffusion and commercialization ...
Berlin: d\carb future economy forum, 2024, 4 S.

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