| dc.description.abstract | Access to energy resources, energy supply security, high and increasing prices of
energy, lack of competition, slow market entry of renewables, insufficient investment
in energy efficiency, and sluggish progress in reducing greenhouse gas
emissions are all well-known issues and concerns characterizing energy markets.
Yet, what are the possibilities of finding effective, efficient, and sustainable
solutions to these problems? The fundamental claim of this book is that solutions
cannot be found without an in-depth analysis of energy markets that acknowledges
not only their physical and technological constraints but also their structural
idiosyncrasies and the behavior of market participants.
This text is the result of 30 years of teaching and research performed by the
authors at both German- and English-speaking universities in Europe. It therefore
adopts a distinctly European approach, yet without neglecting developments worldwide.
While firmly anchored in economic theory, it also presents empirical evidence
enabling readers to assess the relevance of predicted relationships. For
instance, it is certainly of interest to know that the so-called elasticity of substitution
is a crucial parameter for answering the question whether man-made capital can
replace energy quickly enough to assure sustainability in terms of consumption in
spite of the fact that energy constitutes an ultimately limited resource. In addition, it
is also important to see whether the estimated elasticities of substitution are
typically below one (making sustainability questionable) or above one (suggesting
sustainability can be attained). | en_US |
