In order to increase overall transparency on key operational information, power transmission system operators publish an increasing amount of fundamental data, including forecasts of electricity demand and available capacity. We develop a fundamental model for electricity prices which lends...

Excessive heat and cold weather waves may affect economic activity through energy markets. Yet, if a clear distinction of those events from other sources of variation in the economy would help central banks in stabilizing inflation is a research question that lacks theoretical and empirical...

This paper empirically examines price formation in the European Union Emissions Trading Scheme (EU ETS). Our analysis shows that unexpected allocations of European Union Allowances (EUAs) lead to pronounced price reactions of the expected signs. Moreover, we find evidence that the adjustment of...

This paper looks at the restructuring of European electricity markets that has been taking place since the 1990s. This liberalisation process, driven largely by EU legislation aiming to create a single market for electricity, has led to significant changes in how electricity markets in member...

This paper studies the impact of market specific news on the short-time forward premia on the Scandinavian electricity market. I show that the short time premia between the day-ahead and intra-day electricity prices on the Scandinavian market can be explained by the arrival of news specific to...

The European Union has set ambitious targets for emission reduction and the penetration of renewable energy, including the electricity generation sector as one of the major emitters of CO2. After a period of subsidy-driven investments, the costs of renewables decreased strongly making...

The energy crisis engulfing Europe is a crisis of both gas and electricity markets, with huge cost impacts on consumers across all European countries. In Britain, half of typical household energy expenditure arises from electricity. This paper examines how the cost of gas-powered generation...

The post-pandemic surge in energy prices in Europe, exacerbated by the consequences of the Russia-Ukraine war, has intensified a critical debate over EU energy and climate policy: to what extent are variable renewable energy, namely wind power and solar PV, versus fossil fuels impacting...

The sharp rise in electricity prices has led to a discussion on possible subsidies for companies in the form of an industrial power tariff. The subsidies should help companies remain internationally competitive and prevent them from relocating overseas. Although German electricity prices for...

The DCF (Discounted Cash flow) Model provides the theoretical background for the possible impact of interest rate changes on equity prices. This paper examines the spillover effects from the movement of short term interest rates to equity markets within the Euro area. The empirical study is...