This paper studies the volatility of electricity spot prices in the Nordic market (Sweden, Finland, Denmark, and Norway) under regime switching. Utilizing Markov-switching GARCH (Generalized Autoregressive Conditional Heteroskedasticity) models, we provide strong evidence of nonlinear regime...

The electricity industry is undergoing a transformative evolution driven by three overarching trends: decentralization, digitalization, and decarbonization (3Ds). To ensure access to clean, affordable, and reliable energy for all by 2030 - UN sustainable development goal 7 (SDG7) - countries...

This paper estimates the effect of electricity prices on firm performance, focusing on firm productivity, sales, and employment. Using the World Bank Business Pulse Survey data for a sample of 24 emerging markets and developing economies during 2019-23, the paper estimates the average effect and...

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...

Comprehensive information on energy-related topics, such as take-up of heat pumps, industrial natural gas consumption and prices, and battery connections to the electricity grid, is either not available in Europe in a timely manner, or not available at the level of granularity, reliability and...

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...

Canada has set a target to become net zero by 2050. One of the key pathways for achieving this goal and supporting electrified demand is to expand variable renewable energy capacities. Such integration requires flexibility measures to respond to inherited variability, such as a reactive...

This paper analyzes a parabolic operator ℒ that generalizes several well-known operators commonly used in financial mathematics. We establish the existence and uniqueness of the Feller semigroup associated with ℒ and derive its explicit analytical representation. The theoretical framework...

This research aims to inquire about the influence of energy markets on reshaping green recovery by studying the role of energy resource efficiency in energy reforms in China. Data was obtained from 2012 to 2019 to test the findings of this data envelopment analysis (DEA) technique. The study...

Through facilitating direct energy transfer between producers and consumers and lowering intermediary expenses, peer-to-peer (P2P) energy trading presents notable advantages for individual prosumers. Moreover, peerto-peer trading permits proactive consumers to economically conduct their energy...

We analyze the determinants of industrial energy demand in five new European Union member states (Czechia, Lithuania, Poland, Romania, and Slovenia) with a focus on the effects of energy prices, sectoral output, energy-saving investment, and technological progress. Using a panel dataset covering...

We examine how rising energy costs affect rental housing markets and inequality. Using listing data for the 30 largest German cities from 2015–2024, we find that higher energy prices are passed through to net rents in high-rent segments, where inefficient properties see significant rent...

The profitable exploitation of asset portfolios in the European electricity markets has become more challenging in recent years. This is particularly true for combined heat and power (CHP) generation units that are often facing must-run conditions due to heat demands that need to be satisfied....

In addition to self-production and individual disconnection from the national grid, the ongoing decentralization of the electricity market increasingly relies on energy-sharing mechanisms such as energy communities (ECs). This paper presents a parsimonious model that captures key features of the...

In sheer quantity, the five original BRICS countries appear impressive. They account for a substantial share of the world's population, economy, trade and muster large militaries. In January 2024, BRICS gained even more steam, by admitting four new member states that participated in the most...

How does electricity market integration affect cross-border electricity flows, wholesale prices and renewable electricity generation? We employ a synthetic control method to contribute to literature on electricity market integration using the 2018 integration of Ireland's Single Electricity...

This study investigates how credit to firms responds to an energy price shock by comparing the credit growth of similar firms with different energy intensities before and after the shock triggered by the Russian invasion of Ukraine. Credit growth of energy-intensive firms declined by 8.75...

Fabra and Imelda (2023) study how the method of payment for renewable energy can reduce the ability of energy producers to exert market power in electricity markets. Their theoretical model provides predictions for dominant and fringe firm behavior under incentives using fixed prices or market...

Since China implemented its carbon trading mechanism, trading risks arising from unstable carbon prices have significantly reduced its emission-reduction efficiency. Unlike traditional research, which focuses on the impact of fossil fuels on carbon prices, this study emphasises risk spillovers...

Real-time and time-of-use electricity pricing is based on the premise that consumers reduce demand when prices are high. In this paper, we test this assumption empirically using a large, high-frequency smart meter dataset from Denmark, estimating the short-run (hourly) price elasticity of...

Since 2022, in almost every inflation category, a strong divergence in price dynamics among the EU countries has become visible. The first aim of this paper is to assess the impact of changes in energy prices on the differentiation in price dynamics in individual inflation categories in EU...

The expansion of heat pumps drives the electrification of the heating sector which is important to achieve Germany's ambitious climate targets. This paper examines the impact of heat pumps in combination with thermal storage on the flexibility of the German electricity system in 2030, focusing...

The ongoing transition of our energy systems implies a rise of distributed generators, batteries, and new consumers, including electric vehicles and heat pumps. Previous studies have found that distributed flexibility may substantially benefit wholesale electricity markets, but have neglected...

This paper studies the effects of country-specific energy prices on food consumer price inflation (CPI) within a cross-country Phillips curve framework. It considers a panel of 36 OECD member and candidate economies using quarterly data from the start of 1994 to the end of 2021. We find that...

Heterogeneous interconnections, which link regulated electricity markets to liberalised ones, are becoming increasingly important. Several such interconnections are set to be established in the near future especially between European and North African countries (e.g., Tunisia-Italy,...

European electricity markets are in the midst of unprecedented changes-caused by Russia's invasion of Ukraine and the rise of renewable sources of energy. Using high-frequency data, this paper investigates volatility spillovers across 24 countries in the European Union (EU) during the period...