Topic Climate Policy

The Role of Hedging in Carbon Markets

In the European Emissions Trading System, power generators hold CO2 allowances to hedge for future power sales. First, we model their aggregate hedging demand in response to changes in expectations of future fuel, carbon and power prices from forward prices. This partial equilibrium analysis is then integrated into a two period model of the supply and demand of CO2 allowances considering also emissions ...

Why Do Emitters Trade Carbon Permits? Firm-Level Evidence from the European Emission Trading Scheme

The creation of the EU's Emission Trading Scheme (EU ETS) has turned the right to emit CO2 into a positively priced intermediate good for the affected firms. Firms thus face the decision whether to source compliance with the EU ETS within their boundaries or to acquire it through the permit trade. However, a combination of internal abatement, free permit allocation and exibility to shift the use of ...

RESOURCES

The project investigates the relation between fossil resource markets and climate change. We focus on the resources coal, oil, and natural gas. The issues at heart of this project are climate policies and their effect on supply and demand in energy resource markets, in particular inter-temporal and interregional carbon leakage. This requires in a first step the analysis of the resource markets and...

Economics of Climate Change: Coping with Shocks in Mongolia – Vulnerability, Assets and Migration (Shocks Mongolia)

This project analyzes the impact of climate shocks on the livelihoods and welfare of households in Mongolia. Our analysis particularly focuses on extreme weather events, locally called dzud disasters (see box below). As a consequence of climate change and global warming, it is very likely that climate shocks, such as dzud, will occur more frequently and with greater intensity. As part of the...

Die Auswirkungen des Atomausstiegs in Deutschland auf Strompreise und Klimaschutz in Deutschland und Europa

Distributional Effects of the European Emissions Trading System and the Role of Revenue Recycling: Empirical Evidence from Combined Industry- and Household-Level Data

We calculate the expected distributional effects of the European Emissions Trading System combining industry and household-level data. By combining data on direct CO2 emissions by production sector from the German Environmental Account with the German Input-Output Accounts, we calculate the CO2 intensity of each sector covered by the EU ETS. We focus on the impact of price increases in the electricity ...

Econometric Analyses of Carbon Resource Markets: Dissertation

Carbon resources, mainly the fossil fuels coal, crude oil and natural gas, have been key drivers of global economic development since the industrial revolution, constituting important inputs in the production processes of several sectors, such as power generation, transportation and industry. However, the use of carbon resources has also been a cause of man-made global warming, which is projected to ...

Development Scenarios for the North and Baltic Sea Grid: A Welfare Economic Analysis

The North and Baltic Sea Grid is one of the largest pan-European infrastructure projects raising high hopes regarding the potential of harnessing large amounts of renewable electricity, but also concerns about the implementation in largely nationally dominated regulatory regimes. The paper develops three idealtype development scenarios and quantifies the technical-economic effects: i) the Status quo ...

Does Subsidizing Investments in Energy Efficiency Reduce Energy Consumption? Evidence from Germany

Improving energy efficiency is one of the three pillars of the European energy and climate targets for 2020 and has led to the introduction of several policy measures to promote energy efficiency. The paper analyzes the effectiveness of subsidies in increasing energy efficiency in residential dwellings. An empirical analysis is conducted in which the effectiveness of subsidies on the number of dwelling ...

The Incidence of the European Union Emissions Trading System and the Role of Revenue Recycling: Empirical Evidence from Combined Industry- and Household-Level Data

We calculate the expected incidence of the European Union Emissions Trading System (EU-ETS) using industry and household-level data. By combining data on direct CO2 emissions by production sector from the German Environmental Account with the German Input-Output Accounts, we calculate the CO2 intensity of each sector covered by the EU-ETS. We focus on the impact of price increases in the electricity ...