The EU-wide Emission Trading Scheme (ETS), established in 2005, is a key pillar of Europe¿s strategy to attain compliance with the Kyoto Protocol. Under this scheme, CO2 allowances have thus far been allocated largely free of charge. This paper demonstrates that such cost-free allocation,...

We derive optimal subsidization of renewable energies in electricity markets. The analysis takes into account that capacity investment must be chosen under uncertainty about demand conditions and capacity availability, and that capacity as well as electricity generation may be sources of...

In many countries, the transition process towards a low-carbon economy has been associated with increasing electricity prices. Microeconometric evaluations of the causal impact of electricity price changes on plant-level outcomes are rare, though. By exploiting local randomization induced by...

We derive optimal subsidization of renewable energies in electricity markets. The analysis takes into account that capacity investment must be chosen under uncertainty about demand conditions and capacity availability, and that capacity as well as electricity generation may be sources of...

The EU-wide Emission Trading Scheme (ETS), established in 2005, is a key pillar of Europe’s strategy to attain compliance with the Kyoto Protocol. Under this scheme, CO2 allowances have thus far been allocated largely free of charge. This paper demonstrates that such cost-free allocation,...

Energy-efficient biomass cookstoves (EEBC) are an important technology for the three billion people relying on firewood and charcoal for cooking in the Global South. This paper assesses the price-responsiveness of demand for EEBC and the role of information about health and economic benefits....

Drawing on panel data from Germany, this paper estimates the relationship between charging infrastructure and the uptake of electric vehicles (EVs). We specify models with fixed effects and instrumental variables to gauge the robustness of our findings in the face of alternative channels through...

Household air pollution from biomass cooking is the most significant environmental health risk in the Global South. Interventions to address this risk mostly promote less-polluting stoves and clean fuels, but their diffusion proves difficult. This paper assesses the potentially complementary...

Recent research suggests that households increase their electricity consumption in the aftermath of installing photovoltaic (PV) panels, a behavioral change commonly referred to as the solar rebound. Drawing on panel data originating from the German Residential Energy Consumption Survey (GRECS),...

Rental housing where tenants are responsible for their own energy bills but landlords are responsible for energy retrofits may pose a particular challenge in achieving optimal rates of investments in energy efficiency. In this paper, we investigate the severity of this split-incentive problem in...