https://hdl.handle.net/10419/224 Institute of Energy Economics at the University of Cologne (EWI) 2026-09-15T04:37:48Z https://hdl.handle.net/10419/340828 Title: Examining the impact of differential electricity pricing on industrial development: Evidence from panel VAR Authors: Fadl, Nada Abstract: Significant discrepancies in electricity pricing are observed across countries, particularly between industrial and household rates. Although the literature studies the relationship between electricity prices and economic performance, little empirical evidence exists on how electricity price differentiation between households and industry affects industrial development across countries. This paper addresses this gap by examining the dynamic relationship between industrial development and cross-subsidy electricity price structures. Using panel vector autoregression (VAR) for 17 OECD countries over a period of 25 years, the study assesses the impact of the electricity price ratio (households to industry) on industrial development. To capture the relative price structure between sectors, the analysis incorporates a cross-subsidy electricity price ratio, which reflects differences in electricity pricing across consumer groups. This ratio captures the joint effect of lower industrial production costs and higher household price incentives, thereby reflecting an industry-friendly economic or regulatory environment that supports industrial activity. The analysis is conducted for the full sample as well as various sub-samples. Orthogonalized impulse-response functions are estimated to disentangle the basic factors, such as capital and labor, from the effects of electricity prices on industrial development. The analysis distinguishes between the direct effect of industrial electricity prices on industrial development and an indirect effect operating through the relative electricity price structure. Consistent with existing literature, the results confirm the negative effect of industrial electricity price levels on industrial development. In addition, the results reveal a previously unexplored ratio effect, providing evidence that lower electricity prices for industry relative to households positively affect industrial development in OECD countries. Thus, the results indicate pricing structures that favor production firms and manufacturers. The findings further emphasize the importance of electricity price differentiation between the industry and households, particularly in the context of trade openness. 2026-01-01T00:00:00Z https://hdl.handle.net/10419/340829 Title: Bidding wind and solar: A theory of price premia in sequential electricity markets Authors: Keutz, Julian Abstract: Price premia between day-ahead and intraday electricity markets are well documented and often attributed to factors such as forecast errors or market frictions. However, existing explanations provide limited insight into why these price premia can exhibit a systematic diurnal structure, as observed in the German market. This paper provides a structural explanation by linking price premia to the bidding behavior of renewable producers. I develop a stylized two-stage model in which renewable producers determine their day-ahead bids under different bidding rationales, including expected-production bidding, risk-neutral bidding, and risk-averse bidding that accounts for tail risk. Closed-form solutions for day-ahead bids and the resulting price premia are derived and evaluated using a calibration to German market data. The results show how bidding behavior interacts with supply curve convexity and forecast uncertainty to translate risk preferences of renewable producers into systematic price premia. In particular, heterogeneous bidding behavior across renewable technologies replicates the diurnal pattern of price premia observed in the German market: negative premia around midday and positive premia during morning and evening hours arise when PV producers bid expected production while wind producers follow a risk-averse strategy. The findings suggest that observed price premia reflect both risk preferences and institutional features of renewable energy marketing, which may warrant reconsideration. 2026-01-01T00:00:00Z https://hdl.handle.net/10419/315027 Title: Green charged decision-making: How two-part remuneration, contract flexibility, and environmental nudging drive vehicle-to-grid participation Authors: Vey, Meike; Namockel, Nils; Ruhnau, Oliver Abstract: Electric mobility and renewable energy play key roles in the global energy transition. In this context, vehicle- to-grid technology, which enables bidirectional energy ´row between electric vehicles and the grid, could make electric vehicles usable as energy storage units, thus supporting grid stability and integration of renewable energy. However, the willingness of electric vehicle owners to participate in vehicle-to-grid contracts remains insufficiently understood, particularly regarding how they respond to speciîoc contract attributes. This paper addresses this gap by conducting a discrete choice experiment to evaluate the preferences of current and potential future German electric vehicle drivers for various vehicle-to-grid contract alternatives. We îond that cycle-based remuneration, ´rexible contract duration, and environmental nudging signiîocantly enhance consumer acceptance. Conversely, a lower guaranteed battery level and longer minimum plug-in durations negatively impact participation. We also test how respondent characteristics in´ruence participation and identify income-dependent preferences, such as lower-income individuals attributing a stronger preference to îoxed daily payments than higher-income individuals. Our differentiated îondings may be used to improve contract designs and marketing efforts to address the unique V2G preferences of various user segments. 2025-01-01T00:00:00Z https://hdl.handle.net/10419/315028 Title: A day late and a dollar short: Intertemporal revenue cap regulation considering stranded assets Authors: Nussberger, Maria; Diers, Hendrik; Kienscherf, Philipp Artur Abstract: The European Union's goal of carbon neutrality by 2050 requires a major reduction in natural gas use for residential heating. However, gas grid equipment, amortized over 45 years in most countries, risks becoming stranded assets. The literature suggests that regulatory shocks could justify enhanced cost recovery during the remaining grid use period to reduce social costs of asset stranding. Under revenue cap regulation, increased cost recovery and higher tariffs may prompt households to switch to alternative technologies. These premature defections risk undermining cost recovery and place additional financial burdens on remaining households. Regulators face a trade-off between efficient defections and cost recovery. This paper introduces an intertemporal equilibrium model to explore network tariffs and household responses under different revenue caps and analyze their welfare implications. We demonstrate that degressive front-loading is an optimal strategy, balancing cost recovery with household exits, reducing stranded assets, and minimizing social costs. Furthermore, we find that, under the predominant revenue cap schemes, total cost recovery is often not achieved. We also examine distributional implications, showing how tariffs burden heterogeneous households. This research offers insights for policymakers and regulators into mitigating stranded costs while managing household defection impacts in countries with revenue cap regulation and young gas grids. 2025-01-01T00:00:00Z