The transition to new energy sources is critical for addressing global carbon emissions. However, there is limited study on how decentralized energy governance (DEG) strategies can effectively promote this transition and mitigate carbon emissions. This study investigates the impact and mechanism of China’s New Energy Demonstration City (NEDC) policy, a prominent DEG strategy, on reducing…
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Resource Adequacy with Increasing Shares of Wind and Solar Power: A Comparison of European and U.S. Electricity Market Designs
We raise the question if improvements to current energy-only markets are sufficient to maintain resource adequacy in electricity markets or whether the rapid increase in wind and solar power gives stronger arguments for additional capacity mechanisms. A comparative analysis between Europe and the United States reveals some fundamental differences, but also many similarities in electricity…
Does adaptive capacity reduce funding costs of municipalities that are exposed to climate change risk?
Research shows that municipalities that face more risk from climate change have higher financing costs than municipalities that face less risk. However, to our best knowledge, it is unknown whether the adaptive capacity of a municaplity is rewarded in terms of lower financing costs. We study municipal bonds issued by U.S. municipalities that are known…
Comparing Regulatory Designs for the Transmission of Offshore Wind Energy
Offshore wind plays an ever-increasing role for the global transition to renewable energy. For offshore wind energy to be successful, cost-effective transport of the produced electricity to shore is necessary. The development and operation of the offshore transmission asset is costly and regulated differently across the globe. In most countries, the TSO is responsible for…
Does the Shale Gas Revolution Hinder Clean Energy Innovation?
We analyze the causal impact of the U.S. shale gas revolution on technological innovation in the electricity generation sector. Using a country-level data set of electricity patents from 1978-2018, we find that the U.S. shale gas revolution led to a 1.60 decrease in the ratio of green to fossil-fuel electricity patents and a 0.93 decrease…
OPEC’s Pursuit of Market Stability
We investigate attempts by the Organization of Petroleum Exporting Countries (OPEC) to stabilize the price of oil during the past fifty years. We first develop a novel decomposition of shifts in global demand and non-OPEC supply. This decomposition provides a fresh perspective on the debate over the relative importance of demand versus supply factors as…
Biomethane for Electricity in Mexico: A Prospective Economic Analysis
Cost-efficiency of the EU Emissions Trading System: An Evaluation of the Second Trading Period
Cap and trade systems are considered to be one of the most cost-efficient options to achieve emission reduction targets. This paper extends the literature on the evaluation of emissions trading systems (ETS) by providing insights into the methodology of the ex-post evaluation of cost-efficiency. Based on data from the second trading period of the EU…
Natural Gas markets in the European Union: Testing Resilience
The liberalization and integration of natural gas markets in Europe have resulted in gas-to-gas competition on a European scale with closely related natural gas prices in the various markets. More recently, the European Union aims to become a resilient energy union which may call for additional policy measures. In this paper we discuss the need…
Analytics on Pricing Signals in Peer-to-Peer Solar Microgrids in Bangladesh
Solar microgrids enabling peer-to-peer energy exchange among off-grid households are poised to contribute to electrifying rural areas in the Global South. This novel approach provides underserved communities with affordable, green and reliable energy access, capable of powering higher-tier consumer as well as productive-use appliances. To ensure these microgrids can be run sustainably, this paper seeks…