nep-ind New Economics Papers
on Industrial Organization
Issue of 2011‒06‒04
three papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Dynamics of Evolution in the Global Fuel-Ethanol Industry By Chan, J.H.; Reiner, D.
  2. The Economics of Energy (and Electricity) Demand By Platchkov, L. M.; Pollitt, M. G.
  3. Electricity Distribution Networks: Investment and Regulation, and Uncertain Demand By Jamasb, T.; Marantes, C.

  1. By: Chan, J.H.; Reiner, D.
    Abstract: We employ a value chain analysis approach to examine the forces shaping the industry structure, entry and inter-firm governance modes. Forty largest global and regional companies in the ethanol manufacturing stage have been classified according to their pre-entry industry of origin. Firms with pre-entry history in feedstock supply have shown higher resilient to market shock especially compared to de novo firms. In addition, we observe a trend of dual-directional vertical integration. Firms backward integrate to secure feedstock supply; firms forward integrate to gain access to the retail market. Security of feedstock has been identified as a critical success factor of the manufacturer in this resource intensive industry. Another critical success factor is gaining control over the end user market via forward integration. We propose that critical success factor is the important determinants of inter-firm governance mode.
    JEL: L11 L70 N5 Q42
    Date: 2011–03–23
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1129&r=ind
  2. By: Platchkov, L. M.; Pollitt, M. G.
    Abstract: Economic drivers, technologies and demand side management are keys in understanding the long-term trends of both energy and more specifically electricity consumption. This paper discusses some of the important economics foundations of energy demand in general, and electricity in particular. First, we look at the macro-economic context of energy. This reveals how energy and electricity consumption are subject to the same drivers - income and price - over long periods. However, energy demand (and carbon emissions) falls and energy prices rises in one country may have little effect at the world level. Next, we examine the features of energy service expenditures. Despite similarities over time, specific sectors are distinct from one another in terms of consumption profiles, and new sources of electricity demand may substantially change total demand and the way it is consumed. This leads us to a closer look at the micro-economic context of energy demand, and the tension between technically possible energy savings one one side, and the economics and behavioural dimensions on the other side. We conclude by highlighting the various unknowns and uncertainties that characterise the future of energy demand.
    JEL: Q40 Q43 D19
    Date: 2011–04–13
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1137&r=ind
  3. By: Jamasb, T.; Marantes, C.
    Abstract: Electricity distribution networks are capital intensive systems and timely investments are crucial for long-term reliability of their service. In coming years, in the UK, and elsewhere in Europe, many networks are in need of extensive investments in their aging assets. Also, aspects of energy policy concerning climate change, renewable energy, energy efficiency, demand side management (DSM), network energy loss reduction, quality of service standards, and security of supply require active, flexible, and smart networks that can be achieved through investments. This paper is a chapter in the forthcoming book "Jamasb T. and Pollitt, M. G. (2011) Eds., The Future of Electricity Demand: Customers, Citizens and Loads, Cambridge University Press: Cambridge" and describes a network investment assessment model developed as a tool to identify and assess the investment requirements of distribution networks. A broadening of the scope of network investments to include demand-related measures that can reduce the need for investments.
    JEL: L94
    Date: 2011–01–31
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1115&r=ind

This nep-ind issue is ©2011 by Kwang Soo Cheong. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.