Electricity Prices and Energy Efficiency - A Regression Discontinuity Approach
(2004) EKHM52 20141Department of Economic History
- Abstract
- This study analyzes the relationship between electricity prices and
energy efficiency in German companies. Economic theory suggests that higher
energy prices will lead to higher energy efficiency. This paper tests this
hypothesis empirically by analyzing company-level data from Germany. In
particular, a special provision of the German Renewable Energy Act (REA) is
exploited. According to this provision, some companies are exempted from
paying the “REA markup” - a markup charged on the electricity price in order to finance subsidies for renewable energy. Exempted companies pay lower electricity prices and can therefore be used as a counterfactual in a regression discontinuity analysis. The results of the analysis suggest that energy... (More) - This study analyzes the relationship between electricity prices and
energy efficiency in German companies. Economic theory suggests that higher
energy prices will lead to higher energy efficiency. This paper tests this
hypothesis empirically by analyzing company-level data from Germany. In
particular, a special provision of the German Renewable Energy Act (REA) is
exploited. According to this provision, some companies are exempted from
paying the “REA markup” - a markup charged on the electricity price in order to finance subsidies for renewable energy. Exempted companies pay lower electricity prices and can therefore be used as a counterfactual in a regression discontinuity analysis. The results of the analysis suggest that energy prices have a statistically significant and positive effect on energy efficiency. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4519446
- author
- Györi, Mario LU
- supervisor
- organization
- course
- EKHM52 20141
- year
- 2004
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Energy Prices, Energy Efficiency, Regression Discontinuity, Sustainable Development
- language
- English
- id
- 4519446
- date added to LUP
- 2014-07-03 10:38:13
- date last changed
- 2014-07-03 10:38:13
@misc{4519446, abstract = {{This study analyzes the relationship between electricity prices and energy efficiency in German companies. Economic theory suggests that higher energy prices will lead to higher energy efficiency. This paper tests this hypothesis empirically by analyzing company-level data from Germany. In particular, a special provision of the German Renewable Energy Act (REA) is exploited. According to this provision, some companies are exempted from paying the “REA markup” - a markup charged on the electricity price in order to finance subsidies for renewable energy. Exempted companies pay lower electricity prices and can therefore be used as a counterfactual in a regression discontinuity analysis. The results of the analysis suggest that energy prices have a statistically significant and positive effect on energy efficiency.}}, author = {{Györi, Mario}}, language = {{eng}}, note = {{Student Paper}}, title = {{Electricity Prices and Energy Efficiency - A Regression Discontinuity Approach}}, year = {{2004}}, }