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on All new papers |
| By: | Sebastian Schäfer (University of Siegen); Lisa Schulten (University of Marburg) |
| Abstract: | A capacity mechanism next to the energy-only market provides necessary investment incentives that spot markets lack. The adequate capacity mix can only be achieved by accounting for the current transition phase to electricity generation with a growing share of renewables. We show that an increasing share of renewable energy leads to a comparative advantage for peak-load power plants in a capacity market. This results in higher flexibility as opposed to missing flexibility induced by the merit order effect at the spot market. Suggested capacity mechanisms do not account for the promotion of renewable energy so far. We consider support for renewables via endogenous discrimination of prices paid for offered capacity. This triggers more efficient incentives to direct the capacity mix to its long-run equilibrium where discriminated prices converge to one equilibrium capacity price. |
| Keywords: | Capacity Markets, Electricity Markets, Resource Adequacy, Reliability Options, Renewable Energy, Merit Order Effect |
| JEL: | Q41 Q42 Q48 L94 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201439&r=reg |
| By: | Rabindra Nepal (School of Economics, University of Queensland); John Foster (School of Economics, University of Queensland); Antonio Carvalho (Heriot-Watt University) |
| Abstract: | What effect does firm structure have on the product service quality on offer? We answer this question by empirically assessing the impacts of complete vertical separation, such as ownership unbundling, on the quality of service delivered by a liberalized network industry. Electricity distribution utilities in New Zealand are considered for this purpose. The results show robust evidence that ownership unbundling contributed to a fall in the duration and frequency of supply interruptions in electricity distribution. However, the results also show that unbundling has no effect in reducing distribution network losses. Overall the results highlight the non-simple impacts of unbundling on quality of electricity distribution. We conclude that quality of service may improve when largely accounted in incentive regulation frameworks than completely relying on specific reform measures such as ownership unbundling. |
| Keywords: | unbundling, ownership, quality, regulation |
| JEL: | L94 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqeemg:7-2014&r=reg |
| By: | Balázs Égert; Antoine Goujard |
| Abstract: | Poland’s productivity has grown strongly over the past decade, and efforts to reduce the regulatory burden have been significant. Despite impressive progress, product market regulation remains more burdensome than in most OECD countries, partly due to the importance of red tape and the level of state involvement in the economy. Further reduction in red tape and pursuing privatisation in competitive markets would increase competitive pressures and ensure neutrality, notably in public procurement processes. Economic rents in many sectors seem high, as stringent entry regulations, regulatory barriers and inefficient bankruptcy procedures induce significant resource misallocation. A welcome deregulation of professional services is ongoing, and the government plans to further ease firm registrations and reform bankruptcy procedures. The independence of the sector regulators in network industries and the powers of the Competition Authority can still be enhanced, as the reform efforts in these sectors remain patchy. The dominant positions of the incumbents and the failure of network sector regulators to introduce a level playing field in order to secure third-party access to the sectoral infrastructure and allow new entry in the competitive segments are another main issue. The advantages of being considered a farmer are also slowing the consolidation process in the agricultural sector. This Working Paper relates to the 2014 OECD Economic Survey of Poland (www.oecd.org/eco/surveys/economic-survey-poland.htm). Renforcer la concurrence en Pologne La productivité de la Pologne a fortement augmenté au cours des dix dernières années et les efforts déployés pour réduire le poids de la réglementation ont été significatifs. Malgré des progrès impressionnants, la réglementation des marchés de produits demeure plus pesante que dans la plupart des autres pays de l'OCDE, ce qui tient en partie à l'importance des formalités administratives et à l'ampleur de l'intervention de l'État dans l'économie. De nouvelles mesures de réduction des formalités administratives et de privatisation sur les marchés concurrentiels accentueraient les pressions de la concurrence et assureraient la neutralité concurrentielle, notamment dans le cadre de la passation des marchés publics. De nombreux secteurs semblent se caractériser par des rentes économiques élevées, dans la mesure où des règles d'entrée rigoureuses, des obstacles réglementaires et des procédures de faillite inefficaces faussent sensiblement l'affectation des ressources. Une déréglementation bienvenue des services professionnels est en cours, et le gouvernement projette d'assouplir encore les procédures d'immatriculation des entreprises ainsi que de réformer les procédures de faillite. L'indépendance des autorités de régulation sectorielles dans les industries de réseau et les prérogatives de l'Autorité de la concurrence peuvent être encore renforcées, étant donné que les efforts de réforme déployés à cet égard demeurent fragmentaires. Un autre problème essentiel tient aux positions dominantes occupées par les opérateurs historiques et au fait que les autorités de régulation sectorielles n'aient pas instauré des règles du jeu équitables, garantissant l'accès des tiers aux infrastructures sectorielles et permettant l'entrée de nouveaux acteurs sur les segments concurrentiels. Les avantages associés au statut d'agriculteur ralentissent par ailleurs le processus de regroupement des exploitations dans le secteur agricole. Ce Document de travail se rapporte à l’Étude économique de l’OCDE de la Pologne 2014 (www.oecd.org/fr/eco/etudes/etude-econom ique-pologne.htm). |
| Keywords: | Poland, productivity, growth, competition, regulation, réglementation, croissance, Pologne, productivité, concurrence |
| JEL: | F43 L1 L3 L4 L5 O3 O43 |
| Date: | 2014–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1125-en&r=reg |
| By: | Muge Adalet McGowan |
| Abstract: | Danish productivity has grown only weakly over the past two decades, both historically and in relation to other countries, despite sound policies and institutions. At the same time, the country has lost export market shares. Denmark needs to continue its efforts to reap the benefits of globalisation, which would contribute to invigorating productivity growth. Fostering competition by removing regulatory barriers and improving public procurement would help. In addition, innovation policy needs to become more efficient and more in line with the growing importance of the service sector and knowledge-based capital. Small and medium-sized enterprises could be better integrated into global markets by improving their access to finance and developing the entrepreneurship culture. This Working Paper relates to the 2013 OECD Economic Survey of Denmark (www.oecd.org/economic-surveydenmark. htm). Spécialisation commerciale et politiques de promotion de la concurrence et de l'innovation au Danemark La productivité danoise n’a progressé que modérément au cours des deux dernières décennies, en comparaison aux périodes passées et aux autres pays, malgré des politiques et des institutions de bonne qualité. En outre, le Danemark a perdu des parts de marché à l’exportation. Le pays doit poursuivre ses efforts pour tirer parti des retombées positives de la mondialisation, ce qui contribuerait à stimuler la croissance de la productivité. Il faudrait également promouvoir la concurrence en supprimant les obstacles réglementaires et en améliorant les procédures de marchés publics. En outre, les politiques d’innovation doivent gagner en efficacité et prendre davantage en compte l’importance croissante du secteur des services et du capital intellectuel. L’intégration des petites et moyennes entreprises dans les marchés mondiaux pourrait être renforcée en améliorant leur accès aux financements et en développant la culture entrepreneuriale. Ce Document de travail se rapporte à l’Étude économique de l’OCDE du Danemark, 2013 (www.oecd.org/fr/eco/etudes/etude-econom ique-danemark.htm). |
| Keywords: | Denmark, innovation, productivity, small and medium-sized enterprises, competition, regulation, trade specialisation, global value chains, export market shares, chaînes de valeur mondiales, parts de marché à l’exportation, réglementation, spécialisation commerciale, petites et moyennes entreprises, productivité, innovation, Danemark, concurrence |
| JEL: | D24 F1 O3 O4 |
| Date: | 2014–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1118-en&r=reg |
| By: | Thai-Thanh Dang; Annabelle Mourougane |
| Abstract: | The objective of this paper is to estimate time variant shadow prices for CO2, SOx, NOx and PM10 in 19 OECD countries over the period 1990-2008 relying on an output distance function approach. Shadow prices for pollutants are found to vary widely across countries, depending on national environmental regulations, the use of inefficient abatement technologies and the structure of the economy. All countries but Korea experienced a decline in CO2 and NOx prices over the period 1990-2008, with the bulk of the decrease occurring since 2000. This suggests that most OECD countries have strengthened their regulatory framework and encouraged the adoption of clean technologies since the 2000s. Estimates of shadow prices of PM10 appear to be extremely variable across countries. Contrary to what is observed for CO2 and NOx, steep declines have occurred in both 1990-2000 and 2000-2008 sub-periods. The empirical work undertaken in this paper could easily be replicated to other countries, and is relatively parsimonious in terms of data. |
| Date: | 2014–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-479&r=reg |
| By: | Michele Fratianni (Department of Business Economics and Public Policy, Indiana University Kelley School of Business); John Pattison (Independent) |
| Abstract: | Financial regulation has shifted from a system managed as an oligopoly dominated by the G2/G5 to expanded club membership like the Basel Committee for Banking Supervision (BCBS). Expansive clubs have to agree to terms that are closer to the preferences of softregulation members. Yet, once a global agreement on minimum standards, such as Basel III, is reached, the implementation is left to national or regional regulators. Deviations from the Basel III standards are bound to occur; the complexity of the agreement will facilitate an asymmetric implementation of national regulation and supervision. On the high side, countries like the US, UK, Australia, some Scandinavian countries and Canada have chosen higher standards. On the low side, we expect deviations to take place in those member countries of the Eurozone that are heterogeneous, have different preferences and tradeoffs between regulatory stringency and economic activity. The requirements of both global clubs and the EU regional club for transparency, monitoring and a level playing field will cause a collision between the interests of the clubs and their members, threatening to undermine global standard setting at the BCBS. |
| Keywords: | Basel III, clubs, financial regulation, Eurozone, asymmetries |
| JEL: | F33 F36 F42 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:iuk:wpaper:2014-10&r=reg |
| By: | Bonroy, O.; Constantatos, C. |
| Abstract: | Are labels good or bad for consumers and firms? The answers may seem straightforward since labels improve information, yet economic theory reveals situations where their introduction reduces the welfare of, at least, some market participants. This essay reviews the theoretical literature on labels in order to identify and explain the main reasons that may cause labeling to produce undesirable side-effects. In constrast to early reviews that either concentrate on narrow topics or treat the subject in a more or less informal way, we bring together the main results from all the currently important topics by presenting and discussing the assumptions and model-building underpinning them. The advantage of this approach is that it identifies the origin of the differences between results, thus allowing the synthesis of results that sometimes appear even to be contradictory. We focus on "quality labels" and exemine: i) the impact of labeling on market structure; ii) the side-effects of costly certification; iii) issues related to the label's trustworthiness; iv) the rationale for mandatory vs voluntary labeling; v) the level at which the label's standard is set according to the agency that selects it; vi) the political economy of labels, i.e. pro or anti-label lobbying, lobbying to affect the label's standard, and lobbying in favor or against the label's mandatory imposition. These topics cover a wide range of applications, including GMOs, Organic Produce, Geographic Indicators, Contolled Origin, Eco-Labels, etc. We conclude by identifying topics that need further research. |
| Keywords: | ASYMMETRIC INFORMATION;CERTIFICATION;CREDENCE GOODS,LABELING;MARKET POWER;POLITICAL ECONOMY;REGULATION;VERTICAL PRODUCT DIFFERENTIATION;WELFARE |
| JEL: | L15 L5 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2014-03&r=reg |
| By: | Thai-Thanh Dang; Annabelle Mourougane |
| Abstract: | The objective of this paper is to estimate the effect on MFP of air pollution in 7 ASEAN economies (Cambodia, Indonesia, Lao PDR, Malaysia, Philippines, Thailand and Vietnam) and China. For this purpose, standard measures of MFP are corrected for the impact of pollution applying the framework developed by Brandt et al. (2013), and valuing pollution through country-specific time-varying shadow price estimates for CO2, SOx, NOx and PM10, derived from an output distance function approach. Shadow prices of pollutants, the opportunity cost of abating pollution in the form of reduced output, are found to vary widely across economies, depending on national environmental regulations, the use of inefficient abatement technologies, and the structure of the economy. In all countries but Cambodia, shadow prices of the various pollutants experience a downward trend since the Asian crisis, suggesting that ASEAN countries and China have strengthened their regulatory framework and encouraged the adoption of clean technologies. Accounting for pollution leads to very different adjustments to standard MFP measures across countries. In most countries the adjustment is positive, suggesting that standard MFP measures have tended to underestimate the true measure. Such correction would be above 2 percentage points in Lao PDR and the Philippines. It is estimated to be around 1 percentage point in China, Indonesia and Thailand and about half that size in Malaysia. It would be negative in Cambodia in this country and nil in Vietnam. |
| Date: | 2014–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-491&r=reg |
| By: | Vladimir B. Benevolenski (National Research University Higher School of Economics) |
| Abstract: | This paper discusses the set of tools of government enacted in 2009–2013 in Russia to provide support to socially oriented nonprofit organizations (SONPOs). The discussion evaluates the new tools within the context of international comparisons. In particular the comparisons concern the definition of SONPOs as a subpopulation of the nonprofit sector, the economic dimension of the tool kit and the combination of the support measures as a means to foster cross-sector cooperation in the delivery of social services. Worldwide cross-sector partnership in the delivery of social services is used by governments to engage the resources of civic organizations in the implementation of social policy. NPOs quite readily accept government support and espouse participatory approaches considering such approaches as instrumental in pursuit of their social missions. In Russia this approach is considered a serious policy innovation since government policy to date vis-a-vis the nonprofit sector could be described as either indifferent or predominantly restrictive. The conceptual framework employed for our discussion is based on the explanation of the role played by nonprofit organizations and of the motivation for cooperation between the state and NPOs in the supply of public goods provided by the theory of “market / government / voluntary failure” and on the tools of government approach developed by Salamon. We first consider the legal definition of the subsector of SONPOs, and then investigate the newly introduced tools of government support featuring data on the scope of Russian federal government support for SONPOs. Our discussion focuses on international comparisons, showing substantial similarity to government tool kits employed to support NPOs elsewhere in the world. |
| Keywords: | government regulation; nonprofit sector; public administration; public-private partnership; Russia; social policy; socially oriented NPO. |
| JEL: | H83 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:17/pa/2014&r=reg |