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,...

Empirical evidence on the response of German households to electricity price changes is sparse. Using panel data originating from Germany's Residential Energy Consumption Survey (GRECS), we fill this void by employing an instrumental variable approach to cope with the endogeneity of the...

Empirical evidence on households' awareness of electricity prices and potentially divergent demand responses to price changes conditional on price knowledge is scant. Using panel data originating from Germany’s Residential Energy Consumption Survey (GRECS), we fill this void by employing an...

Empirical evidence on households' awareness of electricity prices and potentially divergent demand responses to price changes conditional on price knowledge is scant. Using panel data originating from Germany's Residential Energy Consumption Survey (GRECS), we fill this void by employing an...

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,...

Due to the growing share of ”green” electricity generated by renewable energy technologies, the frequency of negative price spikes has substantially increased in Germany. To reduce such events, in 2012, a market premium scheme (MPS) was introduced as an alternative to feed-in tariffs for the...

Der Ausstieg aus der Kernenergie und die angestrebte Energiewende werden vermutlich zu steigenden Strompreisen führen. Einigen Schätzungen zufolge könnten die Preise für Strom bis zum Jahr 2020 um bis zu 30% angehoben werden. Wer trägt die Hauptlast der hohen Kosten? Kann es gelingen, die...

Der Ausstieg aus der Kernenergie und die angestrebte Energiewende werden vermutlich zu steigenden Strompreisen führen. Einigen Schätzungen zufolge könnten die Preise für Strom bis zum Jahr 2020 um bis zu 30% angehoben werden. Wer trägt die Hauptlast der hohen Kosten? Kann es gelingen, die...

Under the EU-wide Emission Trading Scheme (ETS), CO2 allowances have thus far been allocated largely free of charge. This paper presents a didactic synthesis on the impact of the ETS and argues that such a cost-free allocation will lead to an increase in electricity prices even when strong...