We propose one of the first dynamic models of the optimal transition from fossil fuels to renewables in electricity generation that takes into account the variability and intermittency of renewable energy as well as storage. This work sheds light on the extent to which variability and...

This paper studies volumetric risk hedging strategies for solar power under incomplete market settings with a twofold proposal of temperature-based and solar power generation-based models for solar power derivatives and discusses the basis risk arising from solar power volumetric risk hedge with...

This paper estimates demand for residential solar photovoltaic (PV) systems using a new approach to address three empirical challenges that often arise with count data: excess zeros, unobserved heterogeneity, and endogeneity of price. Our results imply a price elasticity of demand for solar PV...

This paper studies how subsidies for solar systems can lead to second-degree moral hazard - the impulse of installers to increase prices and/or reduce labor input when customers receive subsidies. Employing an instrumental variable strategy using plausibly exogenous variation in the size of...

We propose a novel stochastic time series model able to explain the stylized features of daily irradation level data in 5 cities in Germany. The model is suitable for applications to risk management of photovoltaic power production in renewable energy markets. The suggested dynamics is a low...

Distributed solar power generation is growing but not necessarily benefiting the utility firms. Reducing the demand, it hinders the coverage of utility costs with reasonable retail electricity prices. Utilities raise prices, unintentionally reducing both demand and affordability of electricity,...

This paper investigates the distributional welfare effects of the recent trade war in the solar manufacturing sector resulting from the U.S. government-initiated trade tariffs against Chinese solar manufacturers. Our structural econometric model incorporates the vertical structure between...

Traditional electric grids can be improved in terms of competition, reliability and availability of transmission capacity by building microgrids. A microgrid is a group of local generators and consumers that primarily transact with each other, buy excess demand from the grid and sell excess...