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German Energy Market Fallout from the Japanese Earthquake

Author

Listed:
  • Grossi, Luigi

    (Verona University)

  • Waterson, Michael

    (University of Warwick)

Abstract

The German response to the Fukushima nuclear power plant incident was possibly the most significant change of policy towards nuclear power outside Japan, leading to a sudden and very significant shift in the underlying power generation structure in Germany. This provides a very useful natural experiment on the impact of changing proportions of conventional fuel inputs to power production, helping us to see how changed proportions in future as a result of policy moves in favour of renewables are likely to impact. We find through exploration of a conventional demand- supply framework that despite the swift, significant change, the main impact was a relatively modest increase in prices occasioned by a shift of the supply curve; there were no appreciable quantity effects on the market, such as power outages, despite some views that the impacts would be significant.

Suggested Citation

  • Grossi, Luigi & Waterson, Michael, 2013. "German Energy Market Fallout from the Japanese Earthquake," CAGE Online Working Paper Series 157, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:157
    as

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    File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/157-2013_grossi.pdf
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    References listed on IDEAS

    as
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    Keywords

    Atomausstieg; Demand-supply framework; German power market; nuclear power; renewables;

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