During this masterclass, which is open to all University of Bath PGT and PhD students, you’ll hear from Professor Gerard Llobet (Centro de Estudios Monetarios y Financieros (CEMFI)).

He will speak about his ‘Designing Contracts for the Energy Transition’ paper, published in the International Journal of Industrial Organization.

Full abstract:

This paper examines the limitations of spot markets in providing adequate investment incentives to support zero-carbon investments in electricity markets. In contrast, properly designed long-term contracts have the potential to mitigate price volatility and facilitate the funding of the investments. A theoretical model is developed to analyse contract design under conditions of moral hazard and adverse selection, emphasising the trade-offs that arise when exposing firms to price and quantity risk. The findings inform optimal contract design for nuclear and renewable energy projects, offering policy recommendations to enhance investment incentives while minimizing productive inefficiencies and excessive rents.

Speaker

Professor Gerard Llobet is an IO economist. His research mainly focuses on innovation and how it is affected by the design intellectual property rights and patent licensing. In recent years, he's worked on the effect of renewable power sources, their coexistence with existing fossil technologies, and the upcoming energy transition. He's also a board member of the Catalan Competition Authority.

Attend this masterclass

You do not need to book your place at this masterclass.

We advise that you arrive at the location (3 East, Room 2.2) around 5 to 10 minutes before the masterclass starts.