Optimal capacity allocation for investments in electricity generation assets can be deterministically derived by comparing technology specific long-term and short-term marginal costs. In an uncertain market environment, Mean-Variance Portfolio (MVP) theory provides a consistent framework to...

Renewable electricity is the main instrument used for decarbonizing the electricity sector. This paper aims at estimating the emission displacement effect of renewables in Germany for 2017. The results suggest that the marginal offsetting effect is positive. Wind electricity offsets more...