Average market prices for intermittent generation technologies are lower than for conventional generation. This has a technical reason but can be exaggerated in the presence of market power. When there is much wind smaller amounts of conventional generation technologies are required, and prices...

Peering decisions between Internet Service Providers (ISPs) contain substantial non-measurable aspects requiring trust and informal cooperation among peering partners. We study whether virtual districts are observed between Internet peers. Our empirical analysis of the bilateral peering...

Whether transmission contracts increase or mitigate market power depends crucially on the allocation of transmission rights. In an efficiently arbitraged uniform-price auction, generators will only obtain contracts that mitigate their market power. Contracts inherited or bought in a "pay-as-bid"...

European climate policy was traditionally pursued in the expectation of global policy convergence, ensuring equal opportunities for domestic and foreign firms in achieving climate neutrality. However, increasing geopolitical fragmentation has disrupted this expectation. Across the globe,...

We examine the impact of the war in Ukraine on long-term contracts in energy markets. We find that traded contract volumes fall by 65 percent in the first months of the war. A collapse in bilateral trading contributes most to this decline. To protect themselves from price shocks, firms...

The energy crisis following Russia’s invasion of Ukraine exposed the heightened vulnerability of low-income households to rising heating costs, particularly those in energy inefficient buildings. Using data from the German Socio-Economic Panel (SOEP), this study examines the distributional...

Die Energiewende in Deutschland schreitet voran. Erneuerbare Energien decken bereits mehr als die Hälfte der deutschen Stromnachfrage. Allerdings nehmen mit steigenden Anteilen der fluktuierenden Wind- und Solarenergie auch die Schwankungen in der Stromerzeugung zu. Flexibilität auf der...

Germany's energy transition is progressing. Renewable energy sources already cover more than half of Germany's electricity demand. However, as the share of variable wind and solar energy increases, so do the fluctuations in electricity generation. Consequently, flexibility on the supply and...