Peer-Edited Book Chapters

Renewable energy policies change carbon emissions even under emissions trading

In this chapter we review research that rejects the widely held tenet that renewable energy promotion policies have no effect on carbon emissions if the electricity sector is subject to a cap-and-trade scheme. Specifically, it shows that such policies generally do have a net impact on carbon emissions through inter-industry leakage effects. The results also have ramifications for the empirical assessment of renewable energy policies. Furthermore, there might be considerable long-term effects of changing the energy mix in an economy: deliberately changing the energy mix in the power sector affects baseline emissions, marginal abatement costs and the relative importance of vested interests and lobbying groups. Understanding these channels are important avenues for future research to better understand the true effects of supporting renewable energy on total long-run greenhouse gas emissions in regions subject to a cap-and-trade scheme.


On the Economics of Transparency and Cooperation

This thesis is about the relationship between transparency and cooperation. Fixing a particular group of individuals, the basic question can be posed as follows: What does the propensity of those individuals to cooperate with one another has to do with the availability of information they have about each others’ actions? I draw on a body of research on cooperation in game theory and experimental economics, that I review in the first two chapters around the specific focus posed. I contribute to the literature with five novel empirical studies, reported upon in the remaining chapters. The common point of depature is an endogenous conception of information structures. It is shown that this conception has significant empirical implications.

Reports and Analyses

When power saving harms the climate

Sustainable Future Policy Lab: Analyses, 2020-003

Governments around the globe embrace "energy efficiency" to address climate change. For example, the European Union’s "2030 Climate and Energy Framework" explicitly links the pledge to cut greenhouse gas emissions by 40% until 2030 (from 1990 levels) to the goal of a 32.5% improvement of energy efficiency by the same year (from 2007 levels). A 32.5% boost of energy efficiency is assumed to result in a 32.5% drop in energy consumption and carbon emissions. This reasoning is flawed.