The Energy Transition: An Industrial Economics Perspective

Natalia Fabra

No 15705, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Addressing climate change requires full decarbonization of our economies. Whether this objective is achieved at least cost for society hinges on good policy design. In turn, this calls for a thorough understanding of firms’ and consumers’ incentives in the presence of asymmetric information, the determinants of strategic interaction, and the impact of market design and market structure on the intensity of competition. Industrial Economics thus has much to contribute towards a successful Energy Transition, while benefiting from the exciting research opportunities it brings. In this paper, I survey some of the recent developments in this area. My focus is on the power sector, and in particular, on the regulatory and market design challenges triggered by the expansion of intermittent renewables with almost zero marginal costs. I conclude with some questions that merit further research.

Keywords: Carbon emissions; Energy; Competition; market power; Market design; Auctions; Invecstment; Dynamic pricing; Storage (search for similar items in EconPapers)
JEL-codes: L22 L94 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-com, nep-cwa, nep-ene, nep-env and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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