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CIRED Seminar : Nicola Pavanini (Tilburg University)

par Arancha Sánchez - publié le , mis à jour le

Welfare and redistribution in residential electricity markets with solar power


An increasing number of households installing solar panels raises two challenges for regulators : network financing and vertical equity. We propose an optimal tariff design for policymakers to incentivise solar panel adoptions, while guaranteeing the sustainability and equitable distribution of network costs. We estimate structural models of energy demand and solar panel installation, using a unique matched dataset on energy consumption, income, wealth, solar panel installations, and building characteristics for 165,000 households in the Canton of Bern (Switzerland) in 2008-2013. Our counterfactuals recommend as optimal for regulators to subsidise solar panels’ fixed costs with an increase in variable grid charges.


Nicola Pavanini is an assistant professor in the finance department at Tilburg University, in the Netherlands. He received his PhD in economics in 2014 from Warwick University (UK), and was a postdoctoral researcher in the economics department at the University of Zürich (Switzerland) until 2016. His work focuses on empirical industrial organization and structural econometrics, mostly applied to corporate finance, energy economics, and behavioral economics.