Nuremberg Research Seminar in Economics on 22 October 2025, LG 0.423
You are invited to join the weekly Nuremberg Research Seminar in Economics on 22 October 2025, from 13.15 to 14.45 pm. The seminar will be held in room LG 0.423. Mario Samano (HEC Montreal) will be talking about “Subsidies and War Shocks: Evidence from Norway’s Electricity Market”.
More information can be found here:
This paper examines consumer responses to the 2022 European Energy Crisis, using Norway’s zonal electricity market as a natural experiment. Employing a differences-in-differences approach, we show that zones more interconnected with Europe experienced a 7–9\% reduction in household consumption relative to less interconnected zones following the price shock. We then apply a sharp regression discontinuity design to assess consumer reactions to a government subsidy scheme. Paradoxically, households just above the subsidy threshold reduced consumption more than those just below it. This pattern suggests that consumers had adapted to the new high-price environment and viewed the subsidy as temporary, rather than responding to the immediate price relief.