The Merit Order Effect of Wind and Photovoltaic Electricity Generation in Germany 2008-2016

Estimation and Distributional Implications

This paper estimates the merit order effects of wind and PV between 2008-2016 and uses results to discuss redistributive implications of the German Renewable Energy Sources Act (Erneuerbare Energien Gesetz – EEG) in light of current rules for industry exemptions. This research was partly supported through the project “Weiterentwicklung des Marktdesigns und der Netzregulierung zur Transformation des Stromsystems” (FKZ: 0325361B) funded by the Federal Environment Ministry and further analysis conducted in the context of Johanna Cludius’ PhD thesis on the “Distributional Effects of Pollution Control Policies” (The University of New South Wales). Published in Energy Economics.