We study how total factor productivity (TFP), energy prices, and the Great Moderation are linked. First we estimate a joint stochastic process for the energy price and TFP and establish that until the second quarter of 1982, energy prices negatively affected productivity. This spillover has...

This article presents an electricity dispatch model with endogenous electricity generation capacity expansion for Germany over the horizon 2010-2035. The target is to quantify how fuel and carbon price risk impacts investment incentives of thermal power plants. Results point to findings which...