This paper exploits the exogeneity of weather conditions to evaluate renewable energy (RE) subsidy programs in Germany and Spain in terms of their costs for reducing carbon dioxide emissions. We find that both the aggregate costs and the distribution of costs between energy producers and...

It is widely acknowledged that the transition towards a zero-emissions economy requires electrification of energy-related processes across all sectors of the economy - so-called sector coupling. In our analysis we consider countries whose electricity sectors are regulated by a multilateral...

Deep decarbonization requires electrification of energy-related processes across all sectors of the economy. This so-called sector coupling has important implications for quantity-based regulations in the electricity sector which overlap with measures that promote electricity-based technologies...

Exploring pathways for transitioning to clean energy to achieve climate change mitigation goals is essential. Addressing the economic impact of decarbonization options requires strategic planning to determine cost-effective CO2 mitigation strategies. The assessment of marginal CO2 abatement cost...

We categorize the primary incentive-based mechanisms under consideration for addressing greenhouse gas emissions from electricity generation—pricing carbon, setting intensity standards, and subsidizing clean energy—and compare their market outcomes under similar expansions of clean...

This paper tests the independence property under the Coase Theorem in a large multinational cap-and-trade scheme for greenhouse gas emissions, the EU Emissions Trading System (EU ETS). I analyze whether emissions of power producers regulated under the EU ETS are independent from allowance...

This paper exploits the randomness and exogeneity of weather conditions to identify the economic cost of decarbonization through renewable energy (RE) support policies. We find that both the aggregate cost and the distribution of cost between energy producers and consumers vary significantly...

California will implement a cap-and-trade program to limit emissions of carbon dioxide covering industry and electricity sector emissions in 2013, expanding to cover transportation and natural gas in 2015. Although cap-and-trade would increase annual electricity costs for the average customer by...

This paper examines the prices versus quantities issue, originally raised by Weitzman [8], in the context of carbon dioxide emissions and with a special focus on electricity generation. Within a simplified model of the electricity market, in which we explicitly allow for a monopolistic gas...

Zu Beginn des Jahres 2005 startete das europäische Emissionshandelssystem. Die vorliegende Studie beschäftigt sich mit den Auswirkungen des Emissionshandelssystems auf die deutsche Energiewirtschaft. Dargestellt und analysiert wird zunächst die europäische Emissionshandelsrichtlinie...