Despite political activities to foster a low-carbon energy transition, Germany currently sees a considerable number of new coal power plants being added to its power mix. There are several possible drivers for this "dash for coal", but it is widely accepted that windfall profits gained through free allocation of ETS certificates play an important role. Yet the quantification of allocation-related investment ...
We use a quantitative electricity market model to analyze the welfare effects of refunding a share of the emission trading proceeds to support renewable energy technologies that are subject to experience effects. We compare effects of supporting renewable energies under both perfect and oligopolistic competition with competitive fringe firms and emission trading regimes that achieve 70 and 80 percent ...
In this paper, we use a computable general equilibrium model (WIATEC) to study the potential impact of implementing Europe's 20-20-20 climate policy. The results show that the economic costs of implementing the policy are only moderate and within the range of recent empirical evidence. Furthermore, they also indicate that there is a possibility that the existing allocations to the Europena sectors ...
In recent years, there has been much discussion about biochar - a carbonaceous product made of biomass - as a promising technique for mitigating climate change. In particular, this method has the potential to remove carbon dioxide from the atmosphere for the long term by incorporating biochar into the soil while enhancing soil fertility at the same time. A research project conducted by DIW Berlin calculated ...
We investigate the welfare impact of parallel imports using a large panel data set containing monthly information on sales, ex-factory prices, and further product characteristics for all 700 anti-diabetic drugs sold in Germany between 2004 and 2010. We estimate a two-stage nested logit model of demand and, based on an oligopolistic model of multiproduct firms, we then recover the marginal costs and ...
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 flexibility to shift the use ...
This paper provides an introduction to the EU's Emissions Trading System. As such it provides a discussion of the historical and legal context in which the EU ETS developed and now operates, a presentation of the key performance indicators for the first eight years through the end of the second phase in 2012, and some concluding observations on the system's future. The paper is purposively descriptive ...
Im Rahmen der Energiewende soll die Energieversorgung überwiegend auf erneuerbare Energien umgestellt werden. Der Ausbau erneuerbarer Energien wird maßgeblich von der Bundespolitik bestimmt. Daneben spielen aber auch die Bundesländer eine wichtige Rolle und können wesentlich zum Gelingen der Energiewende beitragen. Das DIW Berlin hat zum vierten Mal einen Bundesländervergleich im Bereich erneuerbarer ...