Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 24th Aug 2026, 01:52:35am WEST
External resources will be made available 30 min before a session starts. You may have to reload the page to access the resources.
|
Daily Overview |
| Session | |
|
Egg-Timer: Energy Markets and the Low-Carbon Transition Location: D-112 Session Chair: Yoonha Lee, Seoul National University | |
    | |
Gas Price Pass-Through and the Merit-Order Effect in Times of Crisis 1: Potsdam Institute for Climate Impact Research, Germany; 2: Department of Economics, Tilburg University We develop a merit model with a continuum of facilities and test its predictions for the German power market over the years 2019-2024, including the COVID-19 period and the 2022 EU energy crisis. First, the model formalizes how demand and fuel prices continuously and jointly determine the marginal plant and thereby the non-linear pass-through of input prices into wholesale power prices. Second, the paper estimates gas and coal price pass-through in electricity prices, showing that the gas-price pass-through increased with renewable supply in 2020, yet decreased with renewable supply in 2022, consistent with a crisis-driven reshuffling of the merit order. Third, using the estimated pass-through model, the analysis quantifies the economic benefits of additional renewable generation in 2022 by simulating how extra wind and solar capacity lower residual coal and gas use and reduce electricity prices, shifting rents away from thermal generators toward consumers. Together, these contributions link a new continuous-facility merit framework to empirical evidence on fuel price pass-through and to welfare effects of renewables in a period of extreme energy market stress. | |