This report analyses the influence of the Cap and Trade (CaT) system and the electricity market in California along two main questions: How do CaT design features affect the environmental effectiveness of the system and the quality of the carbon price signal? How do electricity market design...

This report analyses the interaction of the European Emissions Trading System (EU ETS)and the German and Polish electricity markets along two main questions: How do EU ETS design features affect the environmental effectiveness of the system and the quality of the carbon price signal? How do...

This paper examines how optimal renewable energy (RE) support (RES) policies need to be adjusted to account for carbon prices. We show theoretically and empirically that changing carbon prices requires adjusting RE production subsidies due to two different motives: First, RE premiums need to be...

In northern Europe wind energy has become a dominating renewable energy source due to natural conditions and national support schemes. However, the uncertainty about wind generation affects existing network infrastructure and power production planning of generators and cannot not be fully...

Natural gas plays an important role in the future development of electricity markets as it is the least emission intensive fossil generation option while additionally providing the needed flexibility in plant operation to deal with intermittent renewable generation. As both the electricity and...