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Power Politics: Electoral Cycles in German Electricity Prices

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  • Englmaier, Florian
  • Roider, Andreas
  • Stowasser, Till
  • Hinreiner, Lisa

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.

Suggested Citation

  • Englmaier, Florian & Roider, Andreas & Stowasser, Till & Hinreiner, Lisa, 2017. "Power Politics: Electoral Cycles in German Electricity Prices," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168267, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc17:168267
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    Cited by:

    1. Florian Dorn, 2021. "Elections and Government Efficiency," ifo Working Paper Series 363, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    2. Manuela Krause, 2019. "Communal fees and election cycles: Evidence from German municipalities," ifo Working Paper Series 293, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    3. Matuszak, Piotr & Kabaciński, Bartosz, 2021. "Non-commercial goals and financial performance of state-owned enterprises – some evidence from the electricity sector in the EU countries," Journal of Comparative Economics, Elsevier, vol. 49(4), pages 1068-1087.

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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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