The European Commission commissioned an international consortium including the DIW Berlin with a background study on State aid in the field of environmental protection and energy. The results of the study are meant to support the Commission in the revision of the EU Guidelines on State aid for environmental protection and energy (EEAG). One key focus of the study was to assess the current rules that allow electro-intensive firms to be exempted form the payment of levies on electricity prices. These levies are collected to support the green transition. For this purpose, we estimated the elasticity of profits with respect to electricity prices. Based on these estimates, we then simulated a number of counterfactual policy scenarios for changes in `levies’ as input for the revision of EEAG rules currently in place.
(joint work with Tomaso Duso and Jo Seldeslachts)
This is an online seminar using Cisco Webex. You will receive the login data with the invitation to the talk.