TY - UNPB AU - Liebensteiner, Mario AU - Haxhimusa, Adhurim AU - Naumann, Fabian T1 - Subsidizing Renewable Energies or Pricing Carbon? PY - 2021 CY - Erlangen-Nürnberg; Chur; Kaiserslautern PB - Friedrich-Alexander-Universität (FAU). Chair of Energy Markets and Energy Systems Analysis PB - Fachhochschule Graubünden. Zentrum für wirtschaftspolitische Forschung (ZWF) PB - Technische Universität Kaiserslautern. Institute for Resource and Energy Economics UR - https://www.energymarkets.wiso.rw.fau.de/files/2021/04/pumpstorage.pdf AB - This study provides a relevant example of an adverse effect of well-intended state intervention in the power sector with important consequences. We provide causal estimates for the German-Austrian power market that subsidized renewable energies (RE) significantly erode the profitability of energy storages through distortions of the wholesale electricity price (especially during peak times). This effect will intensify with a further deployment of RE. However, energy storages would be particularly important to integrate a vast share of RE by balancing their production intermittency. We also estimate that intensifying carbon pricing would support the business model of storages, thus counteracting the problem. T4 - Causal Effects on Energy Storages Y3 - 26.11.2021 M4 - Citavi ER -