Despite the ongoing appetite of financial investors for merchant investments into the European electricity network, the EC is reluctant to approve such undertakings, thus implicitly favoring regulated investments. Based on a two-level model, we analyze the impact of profit-maximizing merchant...

The purpose of this paper is to illuminate the geographical diffusion of photovoltaic installations in Germany quantitatively and to test if preexisting photovoltaic systems stimulate further installations nearby; thus we investigate to which extent knowledge flows depend on geographic...