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Research unit
SFOE
Project number
SI/501562
Project title
Expectation formation in energy markets and its impact on the success of future energy policies

Texts for this project

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Short description
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Publications / Results
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Final report
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Inserted texts


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Key words
(English)
energy markets; expectations; energy policies
Short description
(English)

Most of economic research deals with history-dependent equilibria leaving no room for expectations. We argue that the formation and the coordination of expectations are crucial for the success of energy policies. Specifically, we want to find out why market participants expect a new energy system to be successful. We seek to derive how policies affect the coordination of expectations in a market and to assess the consequences quantitatively.

Publications / Results
(English)
Related documents
Final report
(English)
The project builds on the hypothesis that current research and policy debates put a too strong emphasis on the historic evolution of economy, technology, and energy systems. As a matter of fact, most of the literature in energy and macroeconomics deals with purely historydependent equilibria. We argue that the formation of expectations and the coordination of expectations by appropriate policies are crucial for the success of future energy policies.
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