(with Ivan Ackermann), Unveiling the energy price tag - Assessing the burden of household energy expenditures among European countries, Energy Policy, 2026, 208, 114919
Abstract: The equity dimension of climate and energy policy is increasingly emphasised both in the academic literature as well as by policymakers. We contribute to the growing body of research that scrutinizes these aspects by quantitatively assessing the patterns of in-come shares of energy expenditures using household survey data from European Union countries for the years 2010, 2015 and 2020. We employ established indices from the public finance literature to quantify the variation in energy expenditure shares along the income distribution. Furthermore, our analysis highlights that an assessment of the equity implications of policies needs a more nuanced approach than just considering energy poverty measures, since these policies affect households along the income distribution. Additionally, we investigate the role of various socio-demographic factors in shaping energy expenditure inequality by a decomposition analysis. In contrast to income, that leads to a higher concentration of energy expenditures, certain characteristics-such as household size and socio-economic status—contribute to a more equal distribution of energy expenditures in the population. Thus, a more differentiated and fine-tuned policy mix beyond purely income-based transfers may be required. (JEL codes: D31; H23; Q48)(with Patrick Bigler), Environmental, Redistributive and Revenue Effects of Policies Promoting Fuel Efficient and Electric Vehicles, Journal of the Association of Environmental and Resource Economists, 2025, 12(5), 1059-1096
Abstract: We analyze welfare implications of policies promoting environmentally-friendly vehicles, employing rich, Swiss micro-data on 23,000 newly purchased cars and their buyers and random coefficients choice models. We compute substitution patterns across fuel types and wealth quartiles and document heterogeneity in preferences for electric vehicles (EVs) between wealth groups. Based on our estimated parameters we suggest optimal combinations of EV subsidies and vehicle tax ‘feebate’ schemes that safeguard road infrastructure financing, while meeting a pre-specified EV market share, preserving consumer welfare and taking equity considerations into account. We document a pathway for the social planner to substantially decrease CO2 emissions of the new car fleet without jeopardizing road infrastructure revenue by switching from the current regime to a policy mix of EV upfront price subsidies coupled with a fuel-efficiency oriented vehicle tax scheme. (JEL codes: C25, D12, H23, L62, Q48)(with Fabian Feger and Nicola Pavanini), Welfare and Redistribution in Residential Energy Markets with Solar Power, Review of Economic Studies, 2022, 89(6), 3267-3302 .
Abstract: An increasing number of households installing solar panels and consuming the energy thus produced raises two challenges for regulators: network financing and vertical equity. We propose alternative tariff and subsidy designs for policymakers to incentivise solar panel adoptions and guarantee that network costs are recovered, while trading off efficiency, equity, and welfare motives. We estimate a structural model of energy demand and solar panel adoption, using a unique matched dataset on energy consumption, prices, income, wealth, solar panel installations, and building characteristics for 165,000 households in Switzerland from 2008-2014. Our counterfactuals recommend the optimal solar panel installation cost subsidies and two-part energy tariffs to achieve a solar energy target. We show that, relative to installation cost subsidies, relying on marginal prices to incentivise solar panel adoptions is more cost efficient and progressive across the income distribution, but generates a larger aggregate welfare loss. (JEL codes: D12, D31, L94, L98, Q42, Q52)(with Benedikt Janzen), Effects of COVID-19 Related Government Response Stringency and Support Policies: Evidence from European Firms, Economic Analysis and Policy, 2022, 76, 129-145.
Abstract: In this paper we employ survey information on more than 10,000 Southern and Eastern European firms to assess the effects of the COVID-19 related lockdown and government support policies on the business operations of enterprises. Our findings reveal considerable size- and sector-related heterogeneity, with small firms, and firms such as hotels and restaurants operating in the facilities sector reporting the largest losses in terms of sales when governments increase the strictness of confinement measures. Fixed effects regression estimates suggest that a complete lockdown results in an average year-on-year sales growth that is approximately 63 percentage points lower than it would be without any curtailment measures. The magnitude of the coefficient on year-on-year sales change for a complete lockdown is 14 percentage points higher for small compared to large enterprises. Furthermore, our results suggest that state aid in the form of deferral of payments or wage subsidies are associated with firms‘ labor market and financial outcomes in times of crisis. For instance, deferral of payments are linked to between 0.7 and 1.5 fewer layoffs per firm in the surveyed enterprises compared to other types of support. (JEL codes: D22, H12, H32)(with Philippe Sulger), Interdependencies Between Countries in the Provision of Energy, Energy Economics, 2022, 107, 105799.
Abstract: Many economies are concerned with the future security of electricity supply. This is rooted in the necessity to decarbonise energy systems and in the nuclear phase-out. Hence, some economies, instead of investing in own domestic energy capacity, rely on energy production by their neighbours. At the same time, countries claim to drastically cut back their fossil fuel energy production. Yet, they increasingly depend on fossil fuel energy imports from abroad. To analyse these interdependencies we employ data for 17 European countries from 1978 to 2017. We first examine how countries respond to changes in energy capacity investment by countries in the vicinity. Using spatial econometric models we find a negative relationship between countries' investment in energy capacities. Second, we use fixed effects and instrumental variable estimators as well as an event study framework to analyse the link between domestic fossil energy production and imports. Our results reveal that a decline in domestic fossil energy production is associated with increasing fossil energy imports, suggesting that countries partially substitute one for the other.(with Benedikt Janzen), Electricity Use as a Real Time Indicator of the Economic Burden of the COVID-19-Related Lockdown: Evidence From Switzerland, CESifo Economic Studies, 2020, 66(4), 303-321.
Abstract: We employ hourly electricity load data for Switzerland as a real-time indicator of the economic effects of the lockdown following the spread of SARS-CoV-2. Our findings reveal that following the drastic lockdown, overall electricity use decreased by 4.6%, with a reduction of even 14.3% in the Canton of Ticino where the number of confirmed cases per capita was one of the highest in Switzerland and also stricter measures such as closures of construction sites and industrial companies were implemented on top of federal regulations. Looking at working days only, we estimate a Swiss-wide decrease in electricity consumption of 7.4%. Assuming industry, services, transport, and agriculture account for 67% of electricity demand, the 4.6% decrease in electricity use implies an almost 7% output reduction in these sectors. In addition, the reduced electricity imports and the change in the generation mix of neighbouring countries, also translates into reduced CO2 emissions related to these imports. (JEL codes: C53, Q4, C3)(with Fabian Feger), When Environmental and Income Redistribution Concerns Collide: The Case of Electricity Pricing, Energy Economics, 2020, 90, 104828.
Abstract: Countries worldwide face major income inequality and environmental challenges. However, recent social upheavals reveal the conflict of interests induced by policies designed to address these concerns. One example relates to residential electricity, where volumetric grid charges and taxes may impede the affordability of electricity. We develop and calibrate a model that captures the social planner's trade-off between inequality aversion and environmental concerns. We employ panel data on 105,000 households in the Swiss Canton of Bern from 2008 to 2013, including electricity consumption, household income and tax payment characteristics. The results show that with inequity aversion and no negative environmental externalities electricity consumption should be subsidised by income tax revenue. With negative environmental externalities, or asymmetric information between the government and the utility, end-user electricity prices are shifted upwards. For high degrees of inequality aversion, the optimal electricity end-user price is below the marginal cost, even in the presence of negative environmental externalities. (JEL codes: D12, D31, H21, H23, H24, L94, L98)(with Nora Strecker and Peter Egger), On the Spread of Social Protection Systems, International Tax and Public Finance, 2017, 24(4), 550-574.
(with Maximilian von Ehrlich), The Taxation of Bonuses and its Effect on Executive Compensation - Evidence from the UK Experience, Journal of Economics and Management Strategy, 2017, 26(3), 712-731.
(with Peter Egger and Ray Rees), Heterogeneous Beliefs and the Demand for D&O Insurance by Listed Companies, Journal of Risk and Insurance, 2015, 82(4), 823-852.
(with Peter Egger), A Test of the Bolton-Scheinkman-Xiong hypothesis of how speculation affects the vesting time of options granted to directors, Journal of Corporate Finance, 2014, 29, 511-519.
(with Peter Egger and Nora Strecker), Effective Labour Taxation and the International Location of Headquarters, International Tax and Public Finance, 2013, 20, 631-652.
(with Peter Egger), Family Policy and the Number of Children: Evidence from a Natural Experiment, European Journal of Political Economy, 2012, 28, 524-539.
The Effects of a Bonus Tax on Manager Compensation and Welfare, Finanzarchiv, 2012, 68, 1-16.
(with Peter Egger and Maximilian von Ehrlich), How Much It Pays to Work in the Financial Sector, CESifo Economic Studies, 2012, 58(1), 110-139.