Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80430
Authors: 
Mokinski, Frieder
Wölfing, Nikolas
Year of Publication: 
2013
Series/Report no.: 
ZEW Discussion Papers 13-055
Abstract: 
We find an asymmetric pass-through of European Emission Allowance (EUA) prices to wholesale electricity prices in Germany and show that this asymmetry has disappeared in response to a report on investigations by the competition authority. The asymmetric pricing pattern, however, was not detected at the time of the report, nor had it been part of the investigations. Our results therefore provide evidence of the deterring effect of regulatory monitoring on firms which exhibit non-competitive pricing behavior. We do not find any asymmetric pass-through of EUA prices in recent years. Several robustness checks support our results.
Subjects: 
asymmetric price adjustment
regulatory monitoring
wholesale electricity markets
emission trading
JEL: 
L4
L94
Q41
Q52
Document Type: 
Working Paper

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