We present a continuous-time generalization of the seminal R&D model of d’Aspremont and Jacquemin ('American Economic Review', 1988) to examine the trade-off between the benefits of allowing firms to cooperate in R&D and the corresponding increased potential for product market collusion. We...

Since PV grid paraity has already been achieved in Germany, households are given an indirect financial incentive to invest in PV and battery storage capacities. This paper analyzes the economic consequences of the household's optimization behavior induced by the indirect financial incentive for...

In recent years, the installed capacities of renewable energies have steadily been increasing. This raises the question for optimal locations of renewables. Ideally, the market prices induce efficient locations. Distorting effects, i.e. non incorporation of the physical grid situations, could...

With the increasing share of volatile renewable energies, weather prediction becomes more important to electricity markets. The weather-driven uncertainty of renewable forecast errors could have price increasing impacts. This research sets up an analytic model to show that the day-ahead optimal...

Based upon probabilistic reliability metrics, we develop an optimization model to determine the efficient amount and location of firm generation capacity to achieve reliability targets in multiregional electricity systems. A particular focus lies on the representation and contribution of...

Electricity markets are increasingly influenced by variable renewable energy such as wind and solar power with a pronounced weather-induced variability and imperfect predictability. As a result, the evaluation of the capacity value of variable renewable energy, i.e. its contribution to security...

We investigate the effects of system integration for reliability of supply in regional electricity systems along with cooperative measures to support it. Specifically, we set up a model to contrast the benefits from integration through statistical balancing (i.e., a positive externality) with...

The investment decision on the placement of wind turbines is, neglecting legal formalities, mainly driven by the aim to maximize the expected annual energy production of single turbines. The result is a concentration of wind farms at locations with high average wind speed. While this strategy...

Ziel dieses Papers ist es, die derzeitige Diskussion bzgl. des sog. Merit-Order Effektes der erneuerbaren Energien auf den Strompreis kritisch zu beleuchten. Veröffentlichungen, welche diesen Effekt quantifizieren, weisen für die Jahre 2005 und 2006 einen Großhandels-Strompreis senkenden...

The Green Paradox states that, in the absence of a tax on CO2 emissions, subsidizing a renewable backstop such as solar or wind energy brings forward the date at which fossil fuels become exhausted and consequently global warming is aggravated. We shed light on this issue by solving a model of...