Current climate and energy policy has to operate under an ex-ante unforeseen economic crisis. An obvious consequence is the collapse of prices for carbon emission allowances as, for example, seen in the European Union. However, this price collapse may be amplified by the interaction of a carbon...

Germany taxes electricity use since 1999. The government granted reduced rates to energy intensive firms in the industrial sector for addressing potentially adverse effects on firms' competitiveness. Firms that use more electricity than certain thresholds established by legislation, pay reduced...

Der deutsche Strommarkt ist im Umbruch. Strom aus erneuerbaren Quellen verdrängt solchen aus konventioneller Erzeugung. Die bestehende Marktordnung fördert zwar effektiv den Ausbau der erneuerbaren Elektrizitätserzeugung, geht aber mit hohen Kosten einher. Zudem entstehen regionale...

Der deutsche Strommarkt ist im Umbruch. Strom aus erneuerbaren Quellen verdrängt solchen aus konventioneller Erzeugung. Gleichzeitig wird immer mehr Elektrizität im Norden Deutschlands produziert und muss zu den Verbrauchern im Süden transportiert werden. Die bestehende Marktordung fordert...

The ongoing economic criticism of the German Renewable Energy Act (EEG) recently started focusing on distributional effects, too. A team of authors at the Cologne Institute for Economic Research is worried about high costs for electricity consumers. They argue since electric power consumption is...

The German electricity market is changing fundamentally as renewable energy replaces conventional sources. Simultaneously, regional imbalances between generation and consumption are appearing. The authors sketch a new market design for the German electricity market, jointly taking into account...

In the last decades supply chains emerged that stretch across many countries. This has been explained with decreasing trade and communication costs. We extend the literature by analyzing if and how unilateral environmental regulation induces offshoring to unregulated jurisdictions. We first...

In the last decades supply chains emerged that stretch across many countries. This has been explained with decreasing trade and communication costs. We extend the literature by analyzing if and how unilateral environmental regulation induces offshoring to unregulated jurisdictions. We first...

In this paper we examine the nonlinear relation between the EUA price and its fundamentals, such as energy prices, macroeconomic risk factors and weather conditions. By estimating a Markov regime-switching model, we find that the relation between the EUA price and its fundamentals varies over...

In this paper we examine the nonlinear relation between the EUA price and its fundamentals, such as energy prices, macroeconomic risk factors and weather conditions. By estimating a Markov regime-switching model, we find that the relation between the EUA price and its fundamentals varies over...