Price Dynamics

Electricity systems based on renewables have an increasing demand for flexibility. This paper considers the potential of power-to-gas to provide flexibility and enhance system integration of renewables. Existing research on power-to-gas typically analyses the system effects of a predetermined power-to-gas unit without endogenising the investment decision. Moreover, insights related to market and portfolio effects of power-to-gas are rare. To this end this work presents a stochastic electricity market model.
Fossil fuel subsidies are a key barrier for economic development and climate change mitigation. While the plunge in international fuel prices has increased the political will to introduce fossil fuel subsidy reforms, recently introduced reforms may risk backsliding when fuel prices rebound − particularly if they fail to address the underlying mechanisms that create demand for low fossil fuel prices. Extant literature has mostly focused on the consequences of fossil fuel subsidies, including their economic or environmental impact, and the social contract that make their reform difficult.
The objective of this study is to explore empirical evidence on the quantitative importance of supply, demand, and market shocks for price changes in international food commodity markets.