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Objectives and Results


The CFI project provided the academic analysis of financing perspective and insurance perspective with a view to climate change and climate protection.

In addition the CFI project provided the dialogue between

German Federal Ministry of Education and Research (BMBF),

the financial markets ("Climate Change Finance Forum")

and the real economy.

So the project of the Sustainable Business Institute (SBI) was a central contribution to include the financing perspective in the context to the „High-Tech Strategy on Climate Protection“ and

"Green Economy" of the German Federal Government.

You will find the English publications below. Other publications you can find on the German sites.

Please feel free to contact us.

Climate Information Systems

Ludolph, M. und von Flotow, P. (2013) Climate information as an object of economic research: state and perspectives

Oestrich-Winkel, Germany: Sustainable Business Institute (SBI)
The study includes an initial investigation of the current literature with respect to economic aspects of climate information and an outline of economic research on these issues.
We hope that this study will contribute to the ongoing discussion between the demand and supply sides of climate information on the development of climate services for the financial sector and beyond.


Report - Climate information as an object of economic research: state and perspectives

SSRN Working Paper - Climate information as an object of economic research: state and perspectives

UNEP FI (2015) Making changes: a learning journey Santam Ltd., South Africa, and experiences with climate information

Genf, Schweiz: UNEP Finance Initiative & Sustainable Business Institute (SBI)
Using the example of South-African insurer Santam this report portrays how climatic shifts can lead to business challenges and new financial risks. It details how Santam decided to respond to these new threats; how a corresponding organizational process was initiated and carried out; and, importantly, the role of climate information in steering Santam's response measures towards increased climate-resilience.

Making changes: a learning journey


von Flotow, P. und Cleemann, L. (2009) Jointly Developing Climate Information Systems: Requirements for the Climate Service Center (CSC) from the perspective of the financial sector

Oestrich-Winkel, Germany: Sustainable Business Institute (SBI)
Upon the creation of the Climate Service Center (CSC), and as part of the BMBF sponsored project ”CFI - Climate Change, Financial Markets and Innovation,“ the Sustainable Business Institute (SBI) together with the ”Climate Change Finance Forum“, the German Insurance Association (GDV) and other companies in the financial sector, examined the need for improved climate information systems by conducting an exploratory survey. 

more information 

Jointly Developing Climate Information Systems: Requirements for the Climate Service Center (CSC) from the perspective of the financial sector

von Flotow, P., Cleemann, L., Hummel, A., Ludolph, M., Clements-Hunt, P., Fischer, R. und Lopez, J. (2011) Advancing Adaptation through climate information services – Results of a global survey on the information requirements of th

Oestrich-Winkel, Germany, and Geneva, Switzerland: Sustainable Business Institute (SBI) & UNEP Finance Initiative
Together with the Climate Change Working Group (CCWG) of the UNEP Finance Initiative (UNEP FI), the Sustainable Business Institute (SBI) conducted an international study among 60 financial service providers, in order to improve the understanding on the climate change information needs and challenges.
Already today, financial service providers and their customers are affected by the impacts of climate change, e.g. by extreme weather events. The survey shows that insurers, reinsurers, lenders, and asset managers expect these kinds of risks to increase in the future.

more information


Advancing Adaptation through climate information services – Results of a global survey on the information requirements of the financial sector

Polzin, F. (2015) Addressing Barriers to Low-Carbon Innovation - Essays on Structures and Policies to Mobilise Private Finance

Frankfurt am Main, Deutschland: Peter Lang

The author analyses how finance flows can be guided towards low-carbon value generation and growth. He investigates the arrangements between actors in the innovation system and policy measures such as technology push, demand-pull and regulation with regard to their influence on private investments. The case studies include innovation intermediaries, energy service contracting for LED lighting and renewable energy project finance. The results show that barriers to low-carbon innovation inhibit the financing for companies, projects and infrastructure. Also, transparent structures which focus on risk and return facilitate private investments and, finally, both science, technology and innovation policies and regulation are needed to spur private finance.

Polzin, F. (2017) Mobilizing private finance for low-carbon innovation – A systematic review of barriers and solutions

Renewable and Sustainable Energy Reviews, 77: 525-535

This paper analyses the field of innovation studies regarding barriers to low-carbon innovation and consequences for finance (investment and divestment) and contributes to a more holistic understanding of the underlying mechanisms. A combination of technological barriers combined with economic barriers, institutional and political barriers contribute to sub-optimal low-carbon investment all along the innovation cycle. Policy makers need to take a systemic approach to enable the redirection of diverse private financial sources. Instruments range from cutting ‘dirty’ (R&D) subsidies and support for clean technology innovation and diffusion, levelling the institutional playing field and making risks of high-carbon and low-carbon technologies transparent to providing a consistent but adaptive long-term transition strategy. This would allow financiers to gradually shift their investments away from high-carbon mainstream markets and scale low-carbon technology niche-markets. However financiers also need to sharpen their competencies with regard to new clean technologies and markets.

Financing eco-innovations

The aim of the CFI studies was to analyze in particular how financial services providers and financial markets act within the phases of the innovation life cycle (commercialization and diffusion), which costs and risk / return ratios they (or may not) support ) how to deal with given framework conditions and how they react to changes in the framework conditions.

Babl, C., Schiereck, D. und von Flotow, P. (2012) Clean Technologies in German economic literature: a bibliometric analysis

Review of Managerial Science 8: 1–26
This paper examines German literature on clean technologies using co-citation analysis from an economic point of view. From a methodological perspective, we will discuss whether co-citation analysis is an appropriate procedure that can be used for emerging fields of research. Based on the reviewed literature, our results suggest that researchers provided a rather small and fragmented set of business knowledge for the cleantech industry. Despite its economic and environmental importance, research on the private use and economic impact of cleantech remains scarce.

Babl, C. (2014) German environmental economics research at a glance: A bibliometric impact analysis

Zeitschrift für Umweltpolitik & Umweltrecht 1/2014: 1–27

Generation and commercialisation of eco-innovations

Polzin, F., von Flotow, P. & Klerkx, L. (2016) Addressing barriers to eco-innovation: Exploring the finance mobilisation functions of institutional innovation intermediaries

Technological Forecasting and Social Change 103: 34-46
This research article explores the role of institutional innovation intermediaries in accelerating the commercialisation of (clean) technologies. Drawing on the finance and innovation intermediaries literatures, we show that financial barriers to eco-innovation can be partly overcome by particular functions of institutional innovation intermediaries; this in turn mobilises private finance along the innovation process. Therefore, we empirically evaluate the roles and instruments of institutional innovation intermediaries (innovation intermediation, policy support, public–private cooperation, financial instruments). Our contribution intersects both the finance and the innovation systems literature by exploring the finance mobilisation functions of institutional innovation intermediaries to address barriers to eco-innovation along the innovation process.

Polzin, F., von Flotow, P. & Nolden, C. (2016) Modes of governance for municipal energy efficiency services – The case of LED street lighting in Germany

Journal of Cleaner Production, 139: 133-145

The diffusion of energy efficiency retrofits is often hampered by high perceived investment risks, long-payback periods and a lack of skills. At a municipal level these issues are particularly pronounced as procuring, implementing and managing retrofits can exceed existing municipal governance capacities. The transition of municipal street lighting from traditional lighting to LED serves as an example. This paper argues that technological (e.g. complexity and maturity), economic (e.g. selling services vs. products and financing costs), institutional (e.g. property situation and contracts) and competency barriers to retrofitting (e.g. lack of measurement capacity and qualified facilitators) translate into transaction costs. We develop a taxonomy of the appropriate mode of municipal retrofitting governance based on transaction costs analysis. The results indicate that more market-based solutions, energy performance contracts in particular, can facilitate the procurement of energy efficiency retrofits and associated investments among municipalities if neutral tenders, open-book accounting, municipal ownership and intermediary organisations allow municipalities to choose appropriate governance structures for particular technologies and retrofits.

Babl, C. und Schiereck, D. (2013) Rare earth metal commodities: Can derivatives help to reduce price risks?

Working Paper
In many other commodity markets, derivatives have helped to substantially reduce price risks on the supply and demand side which raises the question of whether derivatives might over a suitable solution to the problem. In this study, we empirically analyze FOB China spot prices for several rare earth metals and propose stochastic price process models with Poisson risk factors. Based on these models, we show that the rare earth element markets can be characterized as incomplete. Therefore, we demonstrate that the hedge ability of the market is negatively influenced by the degree of incompleteness and discuss alternative hedging opportunities and policy options for firms.

Migendt, M. (2017) Accelerating Green Innovation - Essays on Alternative Investments in Clean Technologies Wiesbaden

Michael Migendt explains the role of alternative investments in supporting the growth of a sustainable economy and recognizes levers that policy makers, managers and entrepreneurs could use for further accelerating green innovation through finance. He focuses on specific examples of alternative investments into green industries, companies, projects, and infrastructure, covering the developments along the innovation chain. Especially the acceleration of green technologies and the in this context occurring interrelations between the three areas of finance, innovation, and policy are key to this work.

Schock, F. (2015) Financial intermediation and novel technologies

Financial intermediation and novel technologies - Interdependencies between private equity and financial intermediaries of technology finance  with evidence from the clean technology sector - Florian Schock

ePubli: Berlin

With its focus on private equity (PE) investment in the clean technology (CT) sector, this thesis makes a contribution to an area of research, that, to date has only in part been examined in extant literature. In particular, it adds to prior research by analyzing (1) the multitude of interdependencies among different sources of capital on the one hand and (2) the interdependencies between these sources of capital and financial/innovation policy measures on the other hand. Thereby, the thesis adds depth to the discussion revolving around the financing of innovative technology companies and incorporates the impact of intended and unintended feedback from policy measures. Each of the four main chapters of the thesis covers different aspects of the interdependencies along the innovation-finance value chain: Chapter 2: Private equity financing of clean technology companies: A literature review (RQ1). Chapter 3: Sources of finance in the clean technology sector: Capital structure, financial intermediation and industry life-cycle (RQ2). Chapter 4: Interdependencies between technology and capacity investments in the solar technology sector (RQ3). Chapter 5: Private equity in clean technology: An exploratory study of the finance-innovation-policy nexus (RQ4). A concluding chapter summarizes the main implications from the four main chapters and presents the findings in a format targeted at specific audiences - researchers, practitioners, and policy makers. 

Equity for early stages in the innovation cycle

Migendt, M., Polzin, F., Schock, F., Täube, F. A., von Flotow, P. und Polzin, F. (2017) Beyond venture capital: an exploratory study of the finance-innovation-policy nexus in cleantech

Industrial and Corporate Change, 26(6): 973-996

In recent years, scholarly interest in financing for innovation has grown, particularly for mitigating climate change. However, extant literature has neglected the interaction of actors along the equity financing value chain, and the indirect effects of innovation and financial policy on the supply and demand of private equity (PE) and venture capital (VC). In this article, we emphasize the importance of these understudied aspects through a comparative case study of equity finance for cleantech in the United States and Germany. We find that systemic interdependencies between institutional investors, VC/PE and policy makers influence the conditions for innovation—the “finance-innovation-policy nexus.” Adverse effects of policies affecting financial markets, in particular institutional investors, have to be taken into account to effectively mobilize private investments for (cleantech) innovation.

Migendt, M., Täube, F. A. und Gilbert, B. A. Cleantech Venture Capital – Evolution and Lifecycle of an Investment Category

SSRN Working Paper
In this paper the authors observe with an extensive database of press articles about venture capital the emergence and following evolution of the topic clean technology investing. The authors match their software-based analysis of the press discourse with investment data and observe high synchronicity of the developments of the two datasets. They demonstrate that historical textual information holds as a viable proxy for analyzing circumstances with a lack of rich data. An industry life cycle model can be applied to the development of this investment category. Additionally the authors develop an understanding of the role of public discourse in the venture capital industry and look at consequences of tone and sentiment in the media data.

Schock, F. Private Equity Financing of Technology Firms: A Literature Review

SSRN Working Paper
This paper summarizes findings from approximately 150 studies that address characteristics of private equity investments in general, and investments in technology companies in specific. The paper is structured along the private equity investment cycle and follows the successive phases of market screening and investment decision making, operative management of portfolio companies and exiting from investments. In the technology sector in particular, private equity investors have been both praised and criticized for their impact on firm capabilities. Therefore, at some length, the paper summarizes findings in extant literature addressing the impact of private equity investment on target firm’s innovative capabilities, entrepreneurial orientation, productivity, and its ability to make long term investments in intangible assets through R&D as well as in tangible assets through capital expenditures. Where observable, the author point out differences among industries as well as differences among the subsequent waves of private equity transactions in the 80s, 90s, and 00s.

Schock, F., Mutl, J., Täube F. A. & von Flotow, P. Interdependencies between Private Equity and Asset Finance Investments - a cross-correlation analysis in the clean technology sector

SSRN Working Paper
Extant literature on private equity decision making has emphasized the role of market characteristics such as market growth and market volume in the investment process of private equity firms. The authors analyze the relationship between technology related private equity investments and market related asset finance investments in the case of the clean technology sector. The latter provides a unique environment for measuring the interdependencies between technology and market related investments. Whereas literature suggests that private equity investments in clean technology companies strengthen technology and/or manufacturing efficiency, asset finance investments in renewable energy projects drive market growth and market volume. We investigate into this relation by analyzing cross correlations between renewable energy asset finance and private equity investments in clean technology firms.

Schock, F. und Täube, F. A. Sources of Finance in the Clean Technology Sector: Capital Structure, Financial Intermediation and Industry Life Cycle

SSRN Working Paper
In this paper, the authors discuss capital commitments from different sources of finance that are used in several key countries worldwide to finance clean technologies (CT). In the course of their analysis, the authors first elaborate on findings from literature that address the importance and implications of different sources of corporate finance including venture capital, private equity, corporate debt, public equity markets, acquisition finance and government grants. Second, they provide data on the volume of capital that has been invested in firms operating in the CT sector from different sources of finance during the period from 2002-2012. In addition to corporate sources of finance, the authors also elaborate on CT asset finance used to fund infrastructure projects. Results indicate that the business life cycle concept is in large parts transferable to the industry level. Moreover, the data suggest the presence of interdependencies between different types of corporate finance as well as between corporate finance and infrastructure finance. The results have implications for firms in the CT sector seeking capital as well as for policy makers. The authors conclude with an interpretation of the capital flows regarding their impact on the CT sector as a whole and provide an outlook of futures avenues of research in this field.


Financing projects and infrastructures

Polzin, F., Migendt, M., Täube, F. & von Flotow, P., (2015) Public policy influence on renewable energy investments—A panel data study across OECD countries

Energy Policy, 80: 98-111

This paper examines the impact of public policy measures on renewable energy (RE) investments in electricity-generating capacity made by institutional investors. Using a novel combination of datasets and a longitudinal research design, we investigate the influence of different policy measures in a sample of OECD countries to suggest an effective policy mix which could tackle failures in the market for clean energy. The results call for technology-specific policies which take into account actual market conditions and technology maturity. To improve the conditions for institutional investments, advisable policy instruments include economic and fiscal incentives such as feed-in tariffs (FIT), especially for less mature technologies. Additionally, market-based instruments such as greenhouse gas (GHG) emission trading systems for mature technologies should be included. These policy measures directly impact the risk and return structure of RE projects. Supplementing these with regulatory measures such as codes and standards (e.g. RPS) and long-term strategic planning could further strengthen the context for RE investments.

Schaede, H, von Ahsen, A., Rinderknecht, S. und Schiereck, D. (2013) Electric Energy Storages – A Method for Specification, Design and Assessment

Int. J. Agile Systems and Management, forthcoming
The energy transition towards a significantly increased use of renewable energies is confronted with numerous challenges. These include the development of efficient energy storage systems, which need to address the specific requirements of the application area. The present paper contributes to this debate with the specification, design and assessment-method (SDA-method). Based on a statistical analysis of the applications load profile, the specifications for the energy storage system are defined and the design process is conducted. This is demonstrated using the example of a kinetic energy storage system. The following assessment considers the energetic behaviour, life cycle costs as well as environmental impacts. In order to fully exploit the comprehensive methodology, in-depth information is required. This relates firstly to the economical use of storages. Secondly, the multidimensional assessment is subject to many uncertainties. The methodology reveals existing information gaps and helps to identify future research objectives.

Schneider, J., Eisele, H., Garrecht, H., Rinderknecht, S., von Ahsen, A., Schiereck, D., Kleiderlein, F., Gilka-Bötzow, A., Klein, M., Schaede, H., Wien, A. und Bogs, C. (2012) A new concept for Energy-Plus-Houses and their facades

Advanced Building Skins (Conference Paper), 14-15 June 2012, Graz University of Technology
Energy-Plus-houses generate more energy than their residents need from external sources. But the building should not be understood as a simple technical power station or an aggregation of adaptive energy technologies, but its integral design should also focus on living space quality and on resource efficiency.
The concept presented here divides the building into two zones interacting with each other both functionally and energetically. Next to a classical living space, the “energy garden” is an active and multifunctional space. Beyond the classical weather protection, it includes other functions like collecting, storing and distributing of energy, plants like in a garden and it can be used to park and re-charge a “clean” and small electrical car.
Classical overhead and vertical semi transparent solar panels integrated in a glass façade are used to ensure a new high-quality living space between the classical “inside” and “outside”. Solar radiation also heats the air in the energy garden which is absorbed by a heat absorber and distributed through a ventilation system by using natural convection. The passive part of the building, the classical living space, is protected by a highly-insulating, opaque façade structure, which is a purely inorganic sandwich construction and combines an Ultra-High-Performance-Concrete-shell with an insulating cement based mineralized foam.


Energy transition in developing countries

Friebe, C. (2013) Diffusion of Renewable Energy Technologies – Private Sector Perspectives on Emerging Markets

Peter Lang, Frankfurt, Germany
By analysing the context of emerging and developing countries, the author explores the private sector perspective on renewable energy diffusion. The evaluation of two technology case studies, namely wind farms (grid-connected renewable energy) and solar home systems (off-grid renewable energy), reveals the perspectives of highly experienced early adopters. Thereby, qualitative and quantitative data sources – including innovative methods such as conjoint analysis – are combined. A key finding is that private sector perspectives, especially of early adopters, are highly relevant for policy makers in their endeavour of designing effective and efficient framework conditions for renewable energy technologies

Friebe, C. und von Flotow, P. (2011) Framework conditions for Investments in Wind Parks in Emerging and Developing Markets

Oestrich-Winkel, Germany: Sustainable Business Institute (SBI)
Wind energy is becoming increasingly competitive compared to conventional sources of electricity. Particularly emerging and developing countries decide to use this technology.
The aim of the study is to help public decision makers design effective and efficient framework conditions for investments in wind energy. The study is also a contribution to the ongoing debate on national climate change adaption strategies of emerging and developing countries.


Framework conditions for Investments in Wind Parks in Emerging and Developing Markets

Paper in Energy Policy (forthcoming)

Friebe, C., von Flotow, P. und Täube, F. A. (2013) Exploring the link between products and services in low-income markets – Evidence from solar home systems

Energy Policy 52: 760–769
One of the key challenges of energy access in emerging markets and developing countries is how to reach households and communities that are unlikely to get a grid connection in the long term or those that are connected to the grid but suffer from regular blackouts or low voltage. By surveying entrepreneurs selling Solar Home Systems (SHSs) on a commercial basis in emerging and developing countries, this study is one of the first attempts to quantify the key elements of four potential Product Service Systems (PSSs): Cash, Credit, Leasing and Fee-for-Service. Whereas the Fee-for-Service approach was found to be suitable only under certain conditions, all PSSs share two key elements for successful market deployment: one or more years of maintenance, and customer support in financing these customers' new asset. Moreover, it appears that private sector companies are in principle able to deliver SHSs to households with incomes greater than USD 1000 per year. The implications for policy makers and development aid agencies are, first, to include maintenance services into public programmes or public–private partnerships and, second, to explicitly consider financial risks for entrepreneurs (e.g., customer commitment and repayment conditions).

Kebir, N., Spiegel, N., Schrecker, T., Groh, S., Scott, C., Ferrufino, G. A., von Flotow, P. und Friebe, C. (2013) Exploring Energy SME Financing in Emerging and Developing Countries

Oestrich-Winkel, Germany: Sustainable Business Institute (SBI)
This study is a relevant contribution to the ongoing debate on effective and efficient public private partnerships and international facilities such as the Green Climate Fund. These kinds of funds should channel large amounts of funding towards the diffusion of climate friendly technologies, for example renewable energy technologies, in emerging and developing countries. This study suggests explicitly addressing the challenge of scaling-up local companies with proven solutions in the field of access to energy. To do this, a structured dialogue between policy makers, private and public investors and technology providers could facilitate the quick implementation of suitable measures. For such a dialogue this study explores what should be discussed, who should be included in the discussion and how all stakeholders could coordinate effectively to address the identified barriers.

Exploring Energy SME Financing in Emerging and Developing Countries

Peterschmidt, N., Neumann, C., von Flotow, P., Friebe, C., Springmann, J.-P. und Schmidt-Reindahl, J. (2013) Scaling up Micro-utilities for Rural Electrification

Oestrich-Winkel, Germany: Sustainable Business Institute (SBI)
This study to explore the experience regarding the successful scale up of the case of village grid systems for rural electrification.

Scaling up Micro-utilities for Rural Electrification – Private Sector Perspectives on Operational Approaches, Financing Instruments and Stakeholder Interaction

von Flotow, P., Deol, R., von Ritter, K., Friebe, C. und Drews, D. (2013) Mobilising Private Capital for Renewable Energy in Emerging and Developing Countries – A case-based rationale

Oestrich-Winkel, Germany: Sustainable Business Institute (SBI)
The main purpose of this report is to contribute to the discussion of what combination of policies and measures by the public and the private sector will achieve an alignment of diverging interests in order to create the enabling environment needed for mobilizing private investment in RE.
The creation of such environment is a challenge of immense proportion given that there is a wide range of private actors, with divers risk-reward expectations, operating in a wide array of RE applications with different sets of challenges, requiring different policy and support measures. At the same time, public sector actors at local, national, and international level pursue a variety of different policy priorities, some five of them mentioned above, and have different level of capability to design and implement RE policies.
The central theme throughout the report is the call for a constructive dialogue between the public and private sector, informed by a systematic understanding of diverging and converging interests, as foundation for a robust and effective policy, institutional, and financial environment encouraging private investment in RE.

Capital markets for corporate finance

Eisenbach, S., Ettenhuber, C., Schiereck, D. und von Flotow, P. (2011) Beginning Consolidation in the Renewable Energy Industry and Bidders’ M&A-Success

Technology and Investment, 2: 81–91
In this paper we examine stock price reactions to mergers and acquisitions in a particular industry, the renewable energy industry. We focus on acquirers and document positive abnormal returns on a sample of 337 completed M&A-transactions announced during 2000 to 2009.

Eisenbach, S, Schiereck, D., Trillig, J. und von Flotow, P. (2013) Sustainable Project Finance, the Adoption of the Equator Principles, and Shareholder Value Effects

Business Strategy and the Environment, forthcoming
Recent trends in the project finance industry include increasing volume and a growing awareness of sustainable development. This has raised the question of whether and a how voluntary code of conduct such as the Equator Principles (EP) could enhance their impact on the project finance industry. The authors apply an event study methodology, and also consider the market model and conditional variance. They find positive abnormal returns for financial institutions adopting the EP, which supports the reputational risk hypothesis. Furthermore, they document that adopters outperform the global project finance market, especially in terms of market share. However, the authors do not find evidence that non-adopters are excluded from lending syndicates. Results include practical recommendations for environmental policy.

Ettenhuber, C. (2013) Financing corporate growth in the renewable energy industry

Peter Lang, Frankfurt, Germany
Financing constraints have been central to the political and economic debate about renewable energy development. This book addresses four related corporate finance questions. The first chapter reviews theoretical considerations and empirical evidence on so-called funding gaps. Chapters two and three analyze the genuine structures of equity and convertible debt offerings in the industry. The final part investigates to what extent business combinations are perceived as a valuable means to company growth. The analysis contains a variety of empirical findings that are novel to existing emerging industry and corporate finance research. It shows that many investors perceive the level of asymmetric information and regulatory risk, as well as the industry’s structure, to be detrimental to renewable energy finance.

Mokinski, F. und Wölfing, N. (2013) The Effect of Regulatory Scrutiny - Asymmetric Cost Pass-through in Power Wholesale and its End

Journal of Regulatory Economics, for thcoming
The authors find an asymmetric pass-through of European Emission Allowance (EUA) prices to wholesale electricity prices in Germany and show that this asymmetry has disappeared in response to a report on investigations by the competition authority. The asymmetric pricing pattern, however, was not detected at the time of the report, nor had it been part of the investigations. Our results therefore provide evidence of the deterring effect of regulatory monitoring on firms which exhibit non-competitive pricing behavior. The authors do not find any asymmetric pass-through of EUA prices in recent years. Several robustness checks support our results.


Schiereck, D. und Trillig, J. (2013) Regulatory Changes and the Volatility of Stock Returns – The German Solar Energy Sector

Konferenzbeitrag auf der 30th International French Finance Association Conference EM Lyon, May 28-31 2013
As the whole cleantech industry is depending on political support and subsidies, we estimate conditional volatility of solar industry stock returns under consideration of political risk news. The results document major changes in political support of the solar industry drive capital market risk and thereby the cost of capital of companies in this sector. Whereby favorable political news items significantly decrease volatility response and unfavorable political news items do not affect volatility response. Moreover, the authors find that the volatility response varies with the exposure to political risk. Companies with higher exposure to political risk show more significant volatility response. News items dealing with the feed-in tariff show most significant effects on volatility response.

Trillig, J. (2012) Regulatory changes and market reactions – the European renewable energy market

International Journal of Entrepreneurship and Small Business, 15(1): 116–129
Political directives intended to push forward the transformation of the European energy sector from the utilisation of conventional to renewable resources can be seen as regulatory acts and therefore prompt debate about the impact on the risk/return profile of the companies affected. This paper investigates whether political decisions influence the risk/return-profile of young technology-based companies from the cleantech industry. As a first step, the author applies an event study approach in order to examine the impact of regulatory announcements on the company's market value. As a second step, a time-varying beta calculation is used to determine the changes in the systematic stock return risk of the company. The results concord with theoretical findings in general. The stricter the regulation, the more negative the company's abnormal stock return and the higher the systematic risk, and vice versa.

Trillig, J. (2013) Economic Sustainable Development and Capital Market Perception

Available online:

This dissertation shows, based on three independent articles, the relationship between regulatory changes or self-regulation and return on stocks or the stock market risk of a company. The empirical focus is comprised of the renewable energy sector and financial markets.