We consider an economy in which competitive firms use three technologies for electricity production: pollutive fossils, intermittent renewables like wind or solar, and storage. We determine optimal subsidies for renewables and storage capacities when carbon pricing is imperfect. This policy is...

We consider an economy in which competitive firms use three technologies for electricity production: pollutive fossils, intermittent renewables whose availability varies continuously over time, and storage. A Pigouvian tax implements the first-best solution. This is also the case for an...

When the supply of intermittent renewable energies like wind and solar is high, the electricity price is low. Conversely, prices are high when their supply is low. This reduces the pro t potential in renewable energies and, therefore, incentives to invest in renewable capacities. Nevertheless,...

We consider an economy in which competitive firms use three technologies for electricity production: pollutive fossils, intermittent renewables like wind or solar, and storage. We determine optimal subsidies for renewables and storage capacities when carbon pricing is imperfect. This policy is...

Was bringt die Europäische Union (EU) dem Wirtschaftsstandort Deutschland? Dieser Beitrag berechnet anhand unterschiedlicher politischer Szenarien den Vorteil in Form von geringeren Strom- und CO2-Preisen einer europäischen Kooperation beim Klimaschutz sowie beim Ausbau des internationalen...

Energy system and power market models refrain from distinguishing between private and social discount rates. We devise a strategy to account for diverging private and social discount rates in intertemporal optimization frameworks, resulting in an optimal carbon tax above the marginal damage when...

Current decarbonization policies neglect damages from local air pollutants. We analyze the trade-off between complementary taxation of carbon emissions and local air pollution. We quantify results for the European power market until 2050. Taxing only air pollution results in social cost of 5,890...

Policymakers misjudge results of technology-rich optimization models because those models specify investment cost differently and thus are not equally sensitive towards changing financing cost and discount rates. We apply an intertemporally optimizing power market model to analyze three...

Erdgas- und Strompreise hängen in Deutschland und Europa zwar fundamental zusammen. Doch warum verteuern Erdgaspreise die Strompreise so stark, obwohl der Erdgasanteil im Strommix verhältnismäßig gering ist? Was bedeutet das für europäische und deutsche Strompreise? Können die drei...

Nuclear stretching operation in Germany until April 15, 2023 brings down German (European) power prices by 6.01 percent (1.51 percent) until April 15, 2023 and by 2.98 percent (0.65 percent) in 2023, saving 4.8 TWH (8.6 TWh) of natural gas and 3.3 Mt (4.5 Mt) of CO2 emissions in 2023. Nuclear...