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In this video, JOSCHA KRUG explores why energy-intensive manufacturing in Germany has not become more energy efficient despite rising energy costs. Using a theoretical economic model, he shows that preferential treatment - like exemptions for large firms from higher energy prices - can counteract the intended effects of climate policies, potentially increasing overall energy intensity. The study highlights a key trade-off between effective climate action and maintaining industrial competitiveness.
DOI:
https://doi.org/10.21036/LTPUB101227
Institution
University of Mannheim (Universität Mannheim)
For generations, the University of Mannheim has been preparing students to take on leadership roles in business, academia, and society. One of the university’s strengths in this task is its profile, which is characterized by the economic and social sciences. It is in these fields that the University of Mannheim has repeatedly been ranked as one of the top 20 European research institutions. Key focuses of Mannheim researchers include decision-making processes and elections, governance, regulation, competition and innovation, migration and multilingualism, and the culture of change. The campus surrounding Mannheim’s baroque palace is a place where bright minds from across the globe come together to learn, discuss, research, and prepare to make their mark on the world.
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Original publication
Rising Energy Prices Without Falling Consumption? The Role of Energy Price Dispersion in a Multi-Product World
ZEW - Centre for European Economic Research Discussion Paper
Published in 2025
Beyond
A Personal Reading Recommendation
