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Grossi, Luigi; Waterson, Michael (2013)
Publisher: Department of Economics, University of Warwick
Languages: English
Types: Book
Subjects: HB
The German response to the Fukushima nuclear power plant incident was possibly the most\ud significant change of policy towards nuclear power outside Japan, leading to a sudden and very\ud significant shift in the underlying power generation structure in Germany. This provides a very useful\ud natural experiment on the impact of changing proportions of conventional fuel inputs to power\ud production, helping us to see how changed proportions in future as a result of policy moves in favour of\ud renewables are likely to impact. We find through exploration of a conventional demand- supply\ud framework that despite the swift, significant change, the main impact was a relatively modest increase in\ud prices occasioned by a shift of the supply curve; there were no appreciable quantity effects on the market,\ud such as power outages, despite some views that the impacts would be significant.\ud

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