Energy & Environment

Economic regulation plays an important role in the energy sector. We have advised clients, including regulators and consumer bodies, on matters ranging from the incentives of system operators, the state of competition in the retail energy market, to how to regulate transmission and distribution network operators’ charges. The drive to reduce carbon emissions has important consequences for the electricity and gas sectors, and poses new policy challenges where careful economic insight has an important role to play. 

Economic analysis can also assist with developing and accessing policy designed to help the environment

Our work on the environment includes assessing the evidence and monetising the benefits of trees and woodlands to looking at the potential of the sharing economy to researching conditions for a commodity market for end-of-waste materials.

European Commission, DG CLIMA

We have conducted several studies for DG CLIMA relating to the European Union’s emissions trading system.   For example, we conducted a study looking at the impact of changes in trading activity on …

We have conducted several studies for DG CLIMA relating to the European Union’s emissions trading system.   For example, we conducted a study looking at the impact of changes in trading activity on the price formation processes in the European carbon market, the access to the market for retail investors, which included also the access via exchange traded funds (ETFs), the hedging strategies of EU emissions trading system (ETS) compliance entities, and the role played by derivatives and financial entities in the EU ETS.

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European Commission, DG CLIMA

We have conducted several studies for DG CLIMA relating to the European Union’s emissions trading system.   For example, we conducted a study looking at the impact of changes in trading activity on …

Read more...

Danish Energy Regulator (Energistyrelsen)

We looked at how a benchmarking model used to help set price controls by the Energistyrelsen on DSOs might affect the Green Transition.  We looked at the challenges facing DSOs in the Green Transition…

We looked at how a benchmarking model used to help set price controls by the Energistyrelsen on DSOs might affect the Green Transition.  We looked at the challenges facing DSOs in the Green Transition and what behaviours should be incentivised.  We then looked at how the benchmarking model and wider regulatory framework might affect those incentives.  This included developing a number of worked examples to consider how the benchmarking model might affect incentives to invest in network expansion, faster connections or flexibility solutions. 

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Danish Energy Regulator (Energistyrelsen)

We looked at how a benchmarking model used to help set price controls by the Energistyrelsen on DSOs might affect the Green Transition.  We looked at the challenges facing DSOs in the Green Transition…

Read more...

Zero Waste Scotland

Europe Economics was engaged by Zero Waste Scotland (ZWS) to estimate how potential efficiency savings in water and energy are likely to be distributed across firms of different sizes and ownership…

Europe Economics was engaged by Zero Waste Scotland (ZWS) to estimate how potential efficiency savings in water and energy are likely to be distributed across firms of different sizes and ownership structures in Scotland. The aim was to inform ZWS policy of where to target resource saving initiatives; in particular whether potential savings were sufficiently concentrated among SMEs to warrant specific effort among these.

We was also engaged by ZWS to estimate the costs and benefits of proposed market restrictions on specific single-use plastic products in Scotland and to analyse the impacts of the restrictions on competition, consumers and Scottish firms.

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Zero Waste Scotland

Europe Economics was engaged by Zero Waste Scotland (ZWS) to estimate how potential efficiency savings in water and energy are likely to be distributed across firms of different sizes and ownership…

Read more...

Citizens Advice UK

We were commissioned by Citizens Advice UK to investigate the mechanisms that could be used to limit or share the financial risk for energy bill payers in the context of highly anticipatory energy…

We were commissioned by Citizens Advice UK to investigate the mechanisms that could be used to limit or share the financial risk for energy bill payers in the context of highly anticipatory energy infrastructure investments in GB. We developed a compendium of risk-allocation tools and, for each, we analysed: the suitability of the mechanism for different types of investments and projects; the extent (and the type) of risk allocated to consumers; the relative advantages and disadvantages of the tool; and how they affect the cost of capital. Each tool also included a case study of the tool being applied in practice.

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Citizens Advice UK

We were commissioned by Citizens Advice UK to investigate the mechanisms that could be used to limit or share the financial risk for energy bill payers in the context of highly anticipatory energy…

Read more...

Economic analysis can also assist with developing and accessing policy designed to help the environment

Our work on the environment includes assessing the evidence and monetising the benefits of trees and woodlands to looking at the potential of the sharing economy to researching conditions for a commodity market for end-of-waste materials.

Key Contacts

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Dive into our practice areas

European Commission, DG CLIMA

We have conducted several studies for DG CLIMA relating to the European Union’s emissions trading system.   For example, we conducted a study looking at the impact of changes in trading activity on the price formation processes in the European carbon market, the access to the market for retail investors, which included also the access via exchange traded funds (ETFs), the hedging strategies of EU emissions trading system (ETS) compliance entities, and the role played by derivatives and financial entities in the EU ETS.

Danish Energy Regulator (Energistyrelsen)

We looked at how a benchmarking model used to help set price controls by the Energistyrelsen on DSOs might affect the Green Transition.  We looked at the challenges facing DSOs in the Green Transition and what behaviours should be incentivised.  We then looked at how the benchmarking model and wider regulatory framework might affect those incentives.  This included developing a number of worked examples to consider how the benchmarking model might affect incentives to invest in network expansion, faster connections or flexibility solutions. 

Zero Waste Scotland

Europe Economics was engaged by Zero Waste Scotland (ZWS) to estimate how potential efficiency savings in water and energy are likely to be distributed across firms of different sizes and ownership structures in Scotland. The aim was to inform ZWS policy of where to target resource saving initiatives; in particular whether potential savings were sufficiently concentrated among SMEs to warrant specific effort among these.

We was also engaged by ZWS to estimate the costs and benefits of proposed market restrictions on specific single-use plastic products in Scotland and to analyse the impacts of the restrictions on competition, consumers and Scottish firms.

Citizens Advice UK

We were commissioned by Citizens Advice UK to investigate the mechanisms that could be used to limit or share the financial risk for energy bill payers in the context of highly anticipatory energy infrastructure investments in GB.

We developed a compendium of risk-allocation tools and, for each, we analysed: the suitability of the mechanism for different types of investments and projects; the extent (and the type) of risk allocated to consumers; the relative advantages and disadvantages of the tool; and how they affect the cost of capital. Each tool also included a case study of the tool being applied in practice.