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Auctioning Renewable Energy: How to Put a Price On It?

Natalia Fabra

The European Commission has set one of its key climate and energy targets as achieving a share of at least 32% for renewable energy over total energy consumed by 2030. But despite such a large share up for grabs, the methods by which renewable energy is bought and sold are far from clear. Renewable energy auctions have been implemented globally; they’re currently taking place in most countries in Europe and beyond 100 countries around the world. But, says Natalia Fabra of EconPol Europe and Universidad Carlos III de Madrid, there’s no uniformity about the way the auctions are being run, with each country using their own system.

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No-Deal Brexit has Drastic Implications for UK Firms Reliant on EU27 Supply Chains

Lisandra Flach (EconPol Europe, LMU Munich and ifo Institute), Feodora Teti (EconPol Europe, LMU Munich and ifo Institute)

The decision of the UK to leave the EU imposes a key challenge for trade relations; regardless of the outcome of trade talks, trade costs are set to increase with the resulting shocks more severe for goods that are highly dependent on few suppliers. In the worst case scenario, say Lisandra Flach (EconPol Europe, LMU Munich and ifo Institute) and Feodora Teti (EconPol Europe, LMU Munich and ifo Institute), these shocks will cause significant supply chain disruptions that will have a much harsher impact on the UK than any EU member state.These product dependencies, they say, emphasize the need for a trade agreement that minimizes the costs of Brexit for both sides and reduces the uncertainty in international relations.

 

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Impact of the Covid-19 Lockdown on Firm Liquidity and Solvency: The Case of France

M. Guerini (GREDEG, CNRS, Université Côte d’Azur SciencesPo OFCE), L. Nesta (GREDEG, CNRS, Université Côte d’Azur SciencesPo OFCE, SKEMA Business School), X. Ragot (OFCE et CNRS - SciencesPo), S. Schiavo (EconPol Europe, University of Trento, SciencesPo OFCE)

The confinement measures introduced in several countries to fight the Covid-19 pandemic have imposed a high toll on many economic activities. In this post, EconPol's Stefano Schiavo and co-authors exploit recent evidence on French firms recently published by the OFCE-SciencesPo to discuss the policy options facing European governments and the broader implications of firm exit for competitiveness. Using data on a large number of French firms, they simulate the impact of the lockdown on their balance sheets to estimate the share of companies facing liquidity or solvency issues. The main results from the simulation exercise show that the lockdown has profound effects on firms, with an estimated increase in insolvencies by almost 80%.

 

 

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Robots and Mitigation of the Risk of Covid-19 Contagion in the Workplace: Some Evidence From Italy

Mauro Caselli, Andrea Fracasso, Silvio Traverso (EconPol Europe, Università di Trento)

When SARS-CoV-2 spread across the world, national authorities implemented novel and drastic measures to curb transmission. Social distancing was introduced to preserve public health and slow down the spread of Covid-19, while in the workplace many economic activities were temporarility discontinued. Robotization appears to present a potential trade-off between safety and employment in the workplace, but observers are concerned that it could create incentives to replace labour. Mauro Caselli, Andrea Fracasso and Silvio Traverso (EconPol Europe, Università di Trento) examine the issues facing policy makers in their task of designing a pandemic-proof economy.

 

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Covid-19 Throws Us Into an Unprecedented Debt Crisis, But It’s One We Can Rise From

Stefano Schiavo (EconPol Europe, Università di Trento)

The road to recovery is long and winding, says Stefano Schiavo (EconPol Europe, Università di Trento) but it's one we have to take: exceptional measures are needed to exit the economic crisis triggered by the coronavirus, which will see national governments at the forefront of business support and demand stimulation plans.This will lead to a sharp increase in public debt of dimensions never seen in the post-war period, but it's crucial to direct public spending towards initiatives that generate growth and contribute to solving future problems.

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