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First evidence of asymmetric cost pass-through of EU emissions allowances: Examining wholesale electricity prices in Germany

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  • Zachmann, Georg
  • von Hirschhausen, Christian

Abstract

We test the hypothesis that rising prices of emission allowances have a stronger impact on wholesale electricity prices than falling prices (asymmetric cost pass-through). Using an autoregressive distributed lag model, we confirm this hypothesis for the German market.

Suggested Citation

  • Zachmann, Georg & von Hirschhausen, Christian, 2008. "First evidence of asymmetric cost pass-through of EU emissions allowances: Examining wholesale electricity prices in Germany," Economics Letters, Elsevier, vol. 99(3), pages 465-469, June.
    • Handle: RePEc:eee:ecolet:v:99:y:2008:i:3:p:465-469
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