State vs market: Do sources of energy price changes matter for demand elasticities?

CO2 pricing via taxes or emission trading schemes (ETS) should create incentives for companies and individuals to reduce their carbon footprint. We exploit a large meta-dataset of price elasticities for heating and cooling energy sources. We compare elasticities from both state-led and market-led changes, controlling for study-design characteristics. Our working hypothesis is that taxes and ETS have a stronger steering effect than energy price changes stemming from mere market price fluctuations, in line with (Andersson 2019).