We analyze the welfare effects of two different renewable support schemes designed to achieve a given target for the share of fluctuating renewable electricity generation: a feed-in premium (FiP), which can induce negative wholesale prices, and a capacity premium (CP), which does not. For doing...

Energy policy is confronted by two major challenges. First, fossil fuels will become ever more scarce and expensive in coming years, a trend which will intensify conflicts for the control of natural resources. Second, the burning of fossil fuels-particularly coal-is leading to an increase in...

Methane is a greenhouse gas that gets far less public attention than carbon dioxide. This is entirely unwarranted. Being 25 times more potent than carbon dioxide in trapping heat in the atmosphere, methane accounts for about one-sixth of all anthropogenic (i.e. human-induced) greenhouse gas...

In the course of current climate negotiations, the world is watching the United States in particular. Together with China, the U.S. is by far the largest emitter of greenhouse gases. Real progress in protecting the global climate requires substantial action on America's part. The U.S. has the...

Electric vehicle drives offer a number of advantages over conventional internal combustion engines, especially in terms of lower local emissions, higher energy efficiency, and decreased dependency upon oil. Yet there are significant barriers to the rapid adoption of electric cars, including the...

Increasing the use of heat pumps is an important measure for reducing carbon emissions in the heating sector as well as natural gas imports. This report uses an electricity sector model to investigate the effects of an accelerated expansion of the heat pump stock on the German electricity sector...

The so-called traffic light coalition is facing a challenge: it has set ambitious energy policy targets, but can only achieve them if the pace of the energy transition is increased significantly. To contribute to the current energy policy debate, the Ampel-Monitor Energiewende (Monitor of the...

Basic income benefits cover recipients' actual heating expenses as long as they are not unusually high. In contrast, their electricity expenses are only covered via a lump sum at the standard rate. Thus, basic income recipients have weaker incentives for reducing their heating expenses than for...

Replacing fossil fuels with renewable energy sources is one cornerstone of the energy transition. In certain sectors, green hydrogen will play an important role in the future, as is envisioned in the revised National Hydrogen Strategy recently presented by the German Federal Government. This...