The effect of regulatory scrutiny asymmetric cost pass-through in power wholesale and its end

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 13-055

Classification and Topics

• Classification: Wirtschaft ; Electric Utilities ; Energy: Demand and Supply; Prices ; Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
• Subject: asymmetric price adjustment ; regulatory monitoring ; wholesale electricity markets ; emission trading

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mokinski, Frieder ; Wölfing, Nikolas
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/80430
• URN: urn:nbn:de:bsz:180-madoc-345994
• Last update: 10.03.2025, 11:44 AM CET