I'm not a fan of calling 90s rock "classic rock" (unless it is classic rock).

1. The mechanism can also be implemented as a crisis mechanism with gas prices.
2. The mechanism redistributes renewables' profits to consumers, but the parameters should be chosen so that renewables remain profitable.
3. Relative prices are changed, but the merit order should stay the same

10/ Bottom line: a rule-based way to reduce consumer exposure to CO2- and gas-driven price spikes while largely preserving marginal incentives — an alternative to ad hoc windfall taxes or emergency price caps.

9/ Crisis extension: a gas-cost variant targets the fossil marginal-cost component (fuel + CO2) using a reference marginal cost and an excess-cost deduction. Applied to Jul–Dec 2022, it delivers sizable consumer relief in AT/DE without subsidizing gas.

8/ We discuss design and implementation details in the paper.

7/ Incidence differs by system mix: in AT the redistribution mainly comes from run-of-river hydro; in DE it’s mostly onshore wind plus biomass/solar/offshore wind.

6/ Quantification (static, holding prices/quantities fixed): for 2025, implied average expenditure reductions are about 8.5% in Austria and 4.7% in Germany (baseline parameters: threshold 100 €/MWh, proxy deduction 28 €/MWh).

5/ Intuition: this reallocates part of the inframarginal rent to consumers without changing the clearing price or fuel-switching incentives for fossil units.

4/ Mechanism: when the zonal day-ahead price exceeds a threshold (e.g., 100 EUR/MWh), eligible non-fossil generation is paid p − δ (a fixed CO2-proxy deduction, e.g., 28 EUR/MWh). Other units continue to receive p.

3/ Key idea: keep marginal pricing and the ETS cost signal for fossil plants, but change how some inframarginal output is settled in high-price hours.

2/ Policy tension: ETS is meant to raise the cost of emitting generation (and shift the merit order), but it also raises the electricity price paid by households and industry, which can weaken electrification incentives and competitiveness.

1/ In EU day-ahead electricity markets, CO2 allowance costs are largely passed through into the uniform clearing price. Result: higher consumer expenditure and large inframarginal rents (“windfalls”) for non-fossil generation.

More great news! Simon Finster joined us as Assistant Professor of Economics this semester 🎉

His research focuses on Economic Theory and applications to:
- Auctions
- Market Design
- Energy Economics
- IO

Simons's website: www.simonfinster.com

Danke. Bis Jahresende lässt sich die Liberalisierung allerdings nicht ändern. Zumal sie mit EU-Richtlinien verbunden ist.

Können Sie bitte erläutern, wie das gemeint ist?

#econsky
marketdesigner.blogspot.com/2025/08/mark...

I have leftover funding for a PhD student for one year (ideally Sept '25 - Sept '26). Might be a good fit for someone wanting to delay going on the market. Please send interested students my way!

Mehr Sonnenenergie? Mehr Marktwirtschaft wagen! Das günstige Angebot von PV-Anlagen und attraktive Förderungen haben den erwünschten Boom ausgelöst. Es braucht nun leistungsfähigere Netze und Stromspeicher. Marktkonforme Anreize bieten Lösungsansät...

@franzsinabell.bsky.social und ich haben ein Kommentar über dynamische Netzentgelte im @derstandard.at geschrieben www.derstandard.at/story/300000...

📝 Apply via JKU system:
🔗 karriere.jku.at/hcm/jobexcha...
💬 Feel free to DM me or email if you have questions!

4/
🧠 Requirements:
• Master's degree in economics or related field
• Strong theory background
• Very good English (C1)
• Programming in Python/R a plus
• German not required

3/
📌 Topics:
• Microeconomic theory
• Market design
• Game theory
• (Optional) Experimental econ or structural econometrics

2/
👨‍🏫 Work with me on the DFG-funded project:
“Strategic Uncertainty in Market Design”
You'll also have time for your own research, with the option to enroll in our structured PhD program.

🧵 1/
🚨 Job Opening: Join us at Johannes Kepler University Linz! I'm hiring a Pre-Doc / PhD-track Research Assistant in microeconomic theory with a focus on market design & game theory.
Perfect for those considering a PhD or looking for a 1–2 year RA position.
👇

The Hausdorff Center at Bonn will host the Trimester Program on “Advances in Mechanism Design” next summer. Students and postdocs are invited to apply for extended stays during the program or summer school participation. Funding for travel and accommodation is available.

Be a theorist. At worst, your theorem is wrong and everyone thinks you're a moron... Still better than everyone discovering you're a fraudster and a cheat.

80 Jahre.

We're hiring! The Econ Department in Linz is looking for a full professor in Labor Economics. Feel free to reach out if you have any questions about the position or our department! @jku-economics.bsky.social

Excited to join JKU Linz and WIFO Vienna as a Professor of Energy and Environmental Economics! Looking forward to connecting with colleagues and sharing new ideas. @jku.at @jku-economics.bsky.social @wifo.bsky.social

Exciting news! As of May 1st, @b-kasberger.bsky.social has joined our department!

Bernhard is Professor of Energy & Environmental Economics at JKU and WIFO. His work dives into:
⚡ Market & auction design
🌿 Energy + environmental econ
🏭 Industrial org
🎲 Game theory

Website: kasberger.github.io