This paper develops a framework for renewable producers to withhold capacity from the day-ahead market in response to higher renewable output risk. The developed hypotheses are tested on a rich dataset from the German electricity market, with a novel measure of renewable forecast risk. The data...

The European Union's push towards market-based procurement of redispatch services has sparked fears of so called Inc-Dec-Gaming, i.e. the incentive to engage in arbitrage between the national wholesale market and the local redispatch market. The latter would increase both likelihood and severity...

Renewable electricity is the main instrument used for decarbonizing the electricity sector. This paper aims at estimating the emission displacement effect of renewables in Germany for 2017. The results suggest that the marginal offsetting effect is positive. Wind electricity offsets more...