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Prof. Dr. Frank Christian Krysiak

Faculty of Business and Economics
Profiles & Affiliations

Projects & Collaborations

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FV-96 | Klimapolitik und Verteilung: Welche kurz- und langfristigen Verteilungswirkungen haben CO2-Preise?

Research Project  | 3 Project Members

In the political and societal discussion of climate policies, distributional effects are at the forefront of the debate. It is often argued that climate policies incur high costs on households with low income, the rural population, and families. In Switzerland, such arguments may have been important in the rejection of the revised CO2 act in 2021. The aim of this research project is to calculate the actual distributional effects of climate policies. The analyses include different CO2-prices and redistribution-schemes and are conducted in multiple steps that cover short-run and long-run responses to climate policies. The analysis is based on microsimulations using survey data for Swiss households (SHEDS) and covers CO2-emissions from space heating and mobility. Our results show that even under very high CO2-taxes, there are no strong redistributional effects between income groups, household sizes or the rural vs urban population.

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The Future Swiss Electricity Market: Evolution or Revolution?

Research Project  | 2 Project Members

The future Swiss electricity system needs to support the development to carbon-neutrality while providing secure and affordable electricity. The required coordination could be best achieved by a well-designed market. This project aims to address this challenge by developing a structure for market design evaluations and apply it to two distinguished pathways: an evolutionary one, i.e. adjustments of the existing electricity market framework, and a revolutionary one, based on a significant reconfiguration of the current design. Building upon a problem mapping and structuring, a schematic Swiss electricity-system model will be developed to compare the evolutionary and revolutionary design options with regard to their efficiency and viability to cope with the expected challenges for the Swiss electricity system. We will provide insights how and to what extent a sequence of small adjustments or a major overhaul of the electricity market design could be used to derive the future Swiss electricity system.

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Evolving market structure in policy-induced technology transitions: A theoretical investigation of market and investment dynamics

Research Project  | 3 Project Members

Policy-induced transitions to novel technologies have become frequent in many economies; the move towards a low-carbon economy or the energy transitions in Switzerland and Germany are prominent examples. An important feature of such transitions is that the market structure is likely to change during the transition. New entrants, which use new technologies, could replace incumbents, as is the case in some energy transitions. In contrast, incumbents could invest themselves in new technologies and thereby keep newcomers out of the market, as has been the in the CFC-phase out. Current environmental economic theory is not well equipped to describe such transitions, as it either takes the market structure or the technology as given and fixed. This project aims to develop a novel approach for investigating technology transitions. In several steps, it will develop and analyze a theoretical economic model that describes how policy-induced firm investments shape a market structure, which in turn alters investment incentives, and how this feedback-loop evolves over time. The model will be used to analyze governmental policy, for example the questions: Should a government support new entrants or keep old firms in the market via subsidies? What should be the duration of such interventions? Finally, the results of the project will be applied to the case of the Swiss energy transition, building on research and data from the SCCER CREST.

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Climate Change Extremes and Adaptation Strategies considering Uncertainty and Federalism (CCAdapt)

Research Project  | 4 Project Members

Mitigation is the most important response to the threat of climate change, but due to the inertia of the global climate system there is also increasing need for adaptation. This calls for an accurate assessment of adaptation strategies, in particular since most of the existing studies abstract from three important characteristics of adaptation: (1) Future impacts of climate change are uncertain; (2) there exist several options for adapting to a particular impact, which exhibit different temporal and spatial characteristics; (3) adaptation can take place in a federalist setting, where actors differ with respect to information, financial resources and legislative power. The present project aims for developing tools and methods that facilitate a more detailed characterization of climate change adaptation from an economic and policy analysis perspective. These tools and methods are then applied to the specific case of adaptation to a changed probability and magnitude of flood events in Switzerland. Obviously this requires an interdisciplinary approach, which integrates environmental economics, hydrology, meteorology, and political sciences. In four research groups, we develop a theoretical basis of adaptation that takes into account the three aforementioned characteristics, which are then used in Computable General Equilibrium (CGE) models of Switzerland for evaluating feasible adaptation strategies. Both theory development and application will be based on a prediction of climate impacts on hydrological extremes in Switzerland and take into account political barriers to adaptation due to strategic interaction between different levels of Switzerland's federalist structure. The leading house is at the University of Berne (Oeschger Center). The subproject at the University of Basel will focus on the economic theory of adaptation, in particular on the questions of adaptation policy in a federalist setting and on the influence of uncertainty on the choice adaptation measures.

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SCCER CREST - Sectoral Effects of Energy Policy and Energy Market Regulation

Research Project  | 2 Project Members

This task will analyze the interactions within a specific sector (e.g., electricity, buildings, transport) and use this knowledge to develop recommendations for new concepts for market regulation and energy policy. In particular, we will work on: - Policies and market designs that support the development and integration of renewable energy and can replace Switzerland's current feed-in tariff scheme after 2020, - Policies and market designs for promoting energy efficiency in the residential sector (buildings, appliances, mobility) and the business sector (processes, buildings, transport), e.g., white certificate schemes or demand side management programs - Analysis of interdependencies of different policies/ market regulations that address the same sector.

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FV-23 Wirksamkeit klima- und energiepolitischer Massnahmen - eine empirische Analyseun

Research Project  | 4 Project Members

Seit 2005 befindet sich die Klima- und Energiepolitik in der Schweiz und der EU im Umbruch. Marktbasierte Instrumente (Emissionsabgaben, Emissionshandel) finden zunehmend Anwendung und werden häufig durch weitere Instrumente (Einspeisevergütungen, Technologieförderung, Labels) ergänzt. Dabei wird die Wirksamkeit der einzelnen Instrumente sowie der eingesetzten Instrumentkombinationen sehr kontrovers diskutiert. Insbesondere ist unklar, ob ein Einsatz ergänzender Instrumente (z.B. Einspeisevergütung, Technologieförderung) im Kontext eines Emissionshandels sinnvoll ist. Empirische Untersuchungen zu diesem Thema fehlen fast vollständig. Für die Schweiz sind zur Zeit keine hierfür nutzbaren Daten verfügbar. Die EU Kommission veröffentlicht aber mit 5 Jahren Verzögerung die Transaktionsdaten des Europäischen Emissionshandels. Anfang 2013 werden vollständige Daten für die erste Handelsphase (2005-2007) vorliegen. Aufgrund vorhandener Unterschiede in den ergänzenden Instrumente in der EU, kann mit diesen Daten die Wirkung von einzelnen Instrumenten und Instrumentkombinationen untersucht werden. Da fast alle in der Schweizer Politik eingesetzten Instrumente auch in der EU verwendet werden und weitgehend die gleichen Branchen betroffen sind, erlaubt eine solche Untersuchung direkte Rückschlüsse auf die Schweizer Klima- und Energiepolitik.