Subsidies to renewable energy are costly and contentious. We estimate the reduction in prices that follows from the subsidized entry of wind power in the Nordic electricity market. A relatively small-scale entry of renewables leads to a large-scale transfer of surplus from the incumbent...

A coordinated roll-out of energy-demand reduction would create large external benefits in Europe. Lowering the price cap to €1,000 /MWh in the harmonized EU electricity market would save on costs for users, would not harm supply, and would substantially reduce the need for redistribution...