Power Politics: Electoral Cycles in German Electricity Prices – University of Copenhagen

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08 October 2018

Power Politics: Electoral Cycles in German Electricity Prices

Andreas Roider speaks about prices adjustments after electoral cycles at the MRU/CEE seminar at the University of Copenhagen. 

Abstract

We provide evidence that German public energy providers, over which municipality-level politicians hold substantial sway, systematically adjust the pricing of electric energy in response to local electoral cycles. The documented pattern is in line with both, an artificial reduction in prices before an election that needs to be countermanded by future price increases, and an artificial postponement of market-driven price increases until after the election is over.