Many countries have introduced policies to stimulate the production of electricity in a sustainable or renewable way. Theoretical and simulation studies provide evidence that the introduction of renewable energy promotion policies lead to lower electricity prices as sustainable energy supply as...

In this paper we analyze the credit spread on bonds rated Baa that exceeds the credit spread on bonds rated AAA (excess spread) in the US corporate bond market over the time period 1919-2006. We find several factors to be important determinants for the excess spread. The volatility in the stock...