With the liberalization of the electricity markets in 1998, Germany opted for a single, nationwide wholesale price. Regional differences in supply and demand are not taken into account. In the event of grid congestion, electricity generators are paid to adjust their output. This leads to rising...

This paper evaluates the effect of the Russian invasion of Ukraine in February 2022 on refinery margins, i.e. the difference between wholesale prices for road fuels (gasoline and diesel) and oil prices in Europe and Germany in particular. Following the Russian invasion of Ukraine, wholesale road...

The global energy transition is reshaping commodity demand, yet its implications for commodity risk transmission remain unclear. We analyze connectedness among Energy Transition Metals (ETMs) - a subset of metals that are key inputs in clean energy technologies - energy commodities, and...

The article presents a blockchain-based architecture for decentralized electricity trading that tokenizes energy delivery rights and cash-flows. Energy Attribute Certificates (EACs) are implemented as NFTs, while buy/sell orders are encoded as ERC-1155 tokens whose tokenId packs a time slot and...

This paper evaluates the effect of the Russian invasion of Ukraine in February 2022 on refinery margins, i.e. the difference between wholesale prices for road fuels (gasoline and diesel) and oil prices in Europe and Germany in particular. Following the Russian invasion of Ukraine, wholesale road...

We estimate household electricity demand responses to hourly prices under real-time pricing using Finnish smart-meter data, contrasting results under the European energy crisis with those from previously relatively stable market conditions. Methodologically, we show that the standard wind-based...

How would fundamental political change in Iran, leading to a democratic system with a free and rulesbased economic order, affect Germany and the EU economically? In the event of change, sanctions could be scaled back, allowing Iran to rejoin the global economy. This study quantifies the economic...

Feed-in tariffs (FiTs) have been instrumental in expanding renewable electricity generation but can distort investment by insulating producers from market price volatility. This paper develops a twostage model of electricity markets with stochastic demand and supply shocks, showing that a higher...

The Euro Area experienced historically high inflation in 2022, with energy prices playing a central role. This paper examines the joint impact of various energy price shocks on inflation in the Euro Area, with a focus on the period encompassing the COVID-19 pandemic and the Russia–Ukraine war....

Since the deregulation of electricity markets in the 1990s, U.S. power grids have witnessed the creation of an increasingly diverse suite of financial instruments designed to mitigate risks caused by underlying generation and consumption patterns. However, the nature of risks is shifting rapidly...

This analysis deploys the concept of national energy cost share, a practical indicator that measures the ratio of energy costs to gross domestic product (GDP), and uses a dataset covering 142 countries over a 40-year period. It examines how national energy cost shares evolve in response to...

Against the backdrop of increasing climate policy uncertainty, preventing cross-market risk contagion in the energy transition is crucial to ensuring energy security and effective risk management. First, this study uses the generalized autoregressive conditional...

Price premia between day-ahead and intraday electricity markets are well documented and often attributed to factors such as forecast errors or market frictions. However, existing explanations provide limited insight into why these price premia can exhibit a systematic diurnal structure, as...

This paper provides empirical evidence on a statistically significant pass-through from global energy price shocks to firms' inflation expectations in an oil-importing country. The results show that the size and duration of the pass-through depend crucially on the current local energy pricing...

The global energy transition is reshaping commodity demand, yet its implications for commodity risk transmission remain unclear. We analyze connectedness among Energy Transition Metals (ETMs) - a subset of metals that are key inputs in clean energy technologies - energy commodities, and...

Wholesale markets for electricity need to determine: i) the selection of producers allowed to actually supply energy to the grid; ii) the price of energy paid; iii) how revenues are distributed among producers. The design of markets for electricity entails several empirical and theoretical...

Using U.S. and Euro area data, we document that (i) the pass-through of energy prices to inflation is state-dependent - stronger when supply chain uncertainty is elevated - and (ii) in such states, energy prices become more informative about logistical conditions. We develop a model in which...

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...

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...