First Evidence of Asymmetric Cost Pass-through of EU Emissions Allowances: Examining Wholesale Electricity Prices in Germany

Aufsätze referiert extern - Web of Science

Georg Zachmann, Christian von Hirschhausen

In: Economics Letters 99 (2008), 3, S. 465-469


We test the hypothesis that rising prices of emission allowances have a stronger impact on wholesale electricity prices than falling prices (asymmetric cost pass-through). Using an autoregressive distributed lag model, we confirm this hypothesis for the German market