Topic Resource Markets

Loss of Russian natural gas can be compensated for

Friend, Not Foe - Energy Prices and European Monetary Policy

This paper first shows that, contrary to conventional wisdom, the European Central Bank (ECB) can influence global energy prices. Second, through Lucas critique-robust counterfactual analysis, we uncover that the ECB’s ability to affect fast-moving energy prices plays an important role in the transmission of monetary policy. Third, we empirically document that, to optimally fulfill its primary mandate, ...

Spatial Competition and Pass-through of Fuel Taxes: Evidence from a Quasi-natural Experiment in Germany

This paper analyses the pass-through rates and their determinants of the temporary German fuel discount in 2022 at its start and its termination. Based on a unique dataset of fuel station characteristics and prices, we employ a Regression Discontinuity in Time (RDiT) methodology to estimate heterogeneous pass-through rates. Our main contribution is to identify the impact of horizontal and vertical ...

Sanctions against Russian Gas Would Not Endanger EU or German Gas Supply

As a result of the Russian attack on Ukraine, natural gas prices skyrocketed in 2022 and Germany in particular felt the impact of its strong dependency on Russia. Prices have since relaxed, the European natural gas industry has overcome the uncertainty due to the energy crisis in 2022, and the industry also survived the slump in Russian natural gas imports without supply interruptions. However, Russia ...

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 ...

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.

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 ...

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 ...

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 ...

Green Macroeconomics: Time for a New Paradigm

Making macroeconomics fit for a climate-neutral future: The European Union decided to be climate-neutral by 2050 and, hence, become the first climate-neutral continent in the world. Becoming climate-neutral can be considered one of the biggest challenges in our industrial societies. This transition will shape our future tremendously. The invasion of Ukraine further reinforced the necessity to speed ...