System security in electricity markets relies crucially on the interaction between demand and supply over time. However …, research on electricity markets has been mainly focusing on the supply side arguing that demand is rather inelastic. Assuming … perfectly inelastic demand might lead to delusive statements regarding the price formation in electricity markets. In this …

inuencing energy prices and costs such as developments in global energy markets, the EU ETS and the promotion of renewables …. Analysing energy costs (prices times quantity) instead of prices has the advantage of taking into account quantity adjustments …. However, it does not allow for monitoring the burden which energy costs pose on firms. For this purpose, both the European …

2014. Our framework allows for the estimation of quantity-based production functions for multi-product firms while … factor productivity, markups and marginal costs. We find no effect of the EU ETS on firm productivity or profits for the … whole sector, and a positive effect for some industries. Firms pass on shocks to materials costs completely, or even more …