nep-reg New Economics Papers
on Regulation
Issue of 2015‒01‒19
twelve papers chosen by
Natalia Fabra
Universidad Carlos III de Madrid

  1. Support Schemes for Renewable Electricity in the European Union: Producer Strategies and Competition By Luisa Dressler
  2. Asymmetric Neutrality Regulation and Innovation at the Edges: Fixed vs. Mobile Networks By Choi, Jay; Jeon, Doh-Shin; Kim, Byung-Cheol
  3. Capacity remuneration mechanisms in the European market: now but how? By Arthur Henriot; Jean-Michel Glachant
  5. The Effects Of Regulatory Reforms On Public Procurement: The Case Of A National University In Russia By Andrey V. Tkachenko; Andrei A. Yakovlev; Olga A. Demidova; Irina O. Volmenskikh
  6. Inter-temporal R&D and Capital Investment Portfolios for the Electricity Industry’s Low Carbon Future By Nidhi R. Santen; Mort D. Webster; David Popp; Ignacio Pérez-Arriaga
  7. The Heterogeneity of Product Market Regulations By Jean-Marc Fournier
  8. Institutions and Regulations in Innovation Systems: Effects, Problems and Innovation Policy Design By Borrás , Susana; Edquist , Charles
  9. Assessment of EU Postal Sector Policy during the Second Barroso Administration (2010-2014) By Christian Jaag; Urs Trinkner; Jeffrey Yusof
  10. Rail Transport: A Balance Sheet By Juan J. Montero
  11. Reference Pricing: A Small Piece of the Health Care Price and Quality Puzzle By Chapin White Megan Eguchi
  12. What innovation policies for ecological transition? Powering the green innovation machine By Reinhilde Veugelers

  1. By: Luisa Dressler
    Keywords: oligopoly; forward market; renewable electricity; feed-in tariff; premium
    JEL: G13 L13 L98 Q42 Q48
    Date: 2014–12
  2. By: Choi, Jay; Jeon, Doh-Shin; Kim, Byung-Cheol
    Abstract: We study how net neutrality regulations affect a high-bandwidth content provider's (CP) investment incentives in quality of services (QoS). We find that the effects crucially depend on network capacity levels. With limited capacity, as in mobile networks, prioritized delivery services are complementary to the CP's investments and can facilitate entry of congestion-sensitive content; however, this creates more congestion for other existing content. By contrast, if capacity is relatively large, as in fixed-line networks, prioritized services reduce QoS investment as they become substitutes, but improves traffic management. These results are qualitatively robust to the extension of the ISP's endogenous choice of network capacity.
    Keywords: Net neutrality, asymmetric regulation, quality of service, investment incentives, queuing, congestion, mobile/fixed networks
    JEL: D4 K2 L1 L5 O3
    Date: 2014–08–31
  3. By: Arthur Henriot; Jean-Michel Glachant
    Abstract: This article addresses the functioning of capacity remuneration mechanisms (CRMs) in an integrated European electricity market featuring a high share of intermittent renewable energy sources. We first highlight the close ties between flexibility provision and generation adequacy, and explain why these two issues must be considered concomitantly when developing CRMs. We then show that while Member States have different needs, addressing security of supply in a purely national way will be expensive. We finally identify three prerequisites for a workable Europeanization of national generation adequacy mechanisms: a consistent assessment of adequacy needs and cross-border resources, a dedicated method to allocate risks and remuneration of cross-border resources contribution, and a definition of rights over the system resources at times of extreme scarcity.
    Keywords: Capacity remuneration mechanisms, Security of Supply, Flexibility, Integrated Energy Market
    Date: 2014–09
  4. By: Slobodan Cvetanoviæ, Miljan Jovanoviæ (University of Niš, Faculty of Economics)
    Abstract: The increasing use of renewable energy sources is of great importance in the light of the imperatives of the realisation of the sustainable development concept, as the paradigm of the economic, environmental, and social development. It is, therefore, important that the Republic of Serbia follows the model of the European Union, and establish an appropriate regulatory framework for their use. One of the most important aspects of the regulatory framework of the use of renewable energy sources is related to the existence of economic incentives for their growing use. In the group of economic stimuli to the increased use of renewable energy sources, the central place belongs to the obligation to purchase electricity from preferential producers at feed-in tariffs.
    Keywords: renewable energy sources, regulatory framework, financial incentives, feed-in tariffs
    JEL: Q40 Q42 Q48
    Date: 2014–09
  5. By: Andrey V. Tkachenko (National Research University Higher School of Economics); Andrei A. Yakovlev (National Research University Higher School of Economics); Olga A. Demidova (National Research University Higher School of Economics); Irina O. Volmenskikh (National Research University Higher School of Economics)
    Abstract: This paper analyses the impact of reform and different regulation regimes on the effectiveness of procurement at a large state university in the period from 2008 to 2012. We evaluate the impact on the procurement effectiveness parameters of two significant changes in the public procurement regulations: transfer to electronic auctions from 2010 under the Federal Law and the adoption by this organization of its own Procurement Provision from 2011. We show that transfer to electronic auctions leads to higher competition and more significant price decreases, whereas the adoption of Procurement provision has the opposite effect. Regarding delays in contract execution, the first reform has no effect and the second regulation change results in decreasing delays.
    Keywords: public procurements, budget sector organizations, regulation, reforms, effectiveness
    JEL: H57
    Date: 2014
  6. By: Nidhi R. Santen; Mort D. Webster; David Popp; Ignacio Pérez-Arriaga
    Abstract: This paper explores cost-effective low-carbon R&D and capital investment portfolios for the electricity generation sector through 2060. We present a novel method for long-term planning by combining an economic model of endogenous non-linear technical change and a generation capacity planning model with key features of the electricity system. The model captures the complementary nature of technologies in the power sector; physical integration constraints; and the opportunity to build new knowledge capital as a non-linear function of R&D and accumulated knowledge, which reflects the diminishing marginal returns to research characteristic of the energy innovation process. We show portfolios for future scenarios with and without carbon emission limits, and demonstrate the importance of including various features by comparing results from a reference version of the model to results from alternative versions that omit these features. Our results caution that using economic frameworks that do not incorporate critical electricity and innovation system features may over- or under-estimate the value of emerging technologies, and therefore the cost-effectiveness of R&D opportunities.
    JEL: Q40 Q42 Q55
    Date: 2014–12
  7. By: Jean-Marc Fournier
    Abstract: This paper is making use of the OECD product market regulation (PMR) database to measure the heterogeneity of product market regulation across countries for the whole economy, for the main subcomponents of the PMR indicator and for the internet economy. The heterogeneity within EU countries is quite close to the heterogeneity between EU and non-EU countries. Reforms are associated in a majority of cases with a reduction of heterogeneity, and heterogeneity in countries has diminished more the farther they were from common practices. This Working Paper relates to the 2014 OECD Economic Survey of the European Union ( ).<P>L'hétérogénéité de la réglementation des marchés de produits<BR>Ce document utilise la base de données de la réglementation des marchés de produits de l'OCDE (RMP) pour mesurer l'hétérogénéité entre pays de la réglementation des marchés de produits pour l'ensemble de l'économie, pour les principales sous-composantes de l'indicateur RMP et pour l'économie de l'internet. L'hétérogénéité entre pays de l'UE est assez proche de l'hétérogénéité entre les pays de l'UE et les pays hors de l’UE. Les réformes sont associées dans la majorité des cas à une réduction de l'hétérogénéité, et l'hétérogénéité dans les pays a diminué davantage lorsque qu’ils étaient plus loin des pratiques courantes. Ce Document de travail a trait à l’Étude économique de l’OCDE de l’Union européenne, 2014 ( ique-union-europeenne).
    Keywords: product market regulation, trade, heterogeneity, hétérogénéité, réglementation des marchés de produits, commerce
    JEL: F15 K20
    Date: 2015–01–05
  8. By: Borrás , Susana (Department of Business and Politics, Copenhagen Business School, Denmark and CIRCLE, Lund University, Sweden); Edquist , Charles (CIRCLE, Lund University, Sweden (Holder of the Ruben Rausing Chair in Innovation Research))
    Abstract: Institutions (including regulations) are constitutive elements of innovation systems, and therefore cornerstones of innovation policy. Focusing on (soft and hard) regulation, the paper identifies the most salient regulatory areas from the perspective of the innovation system. When asking about the effects of regulation on innovation, the paper argues that there are three key issues that need careful empirical analysis; namely, whether regulation is effective and efficient in terms of reducing uncertainty and generating incentives, whether it is able to generate ultimately wider social benefits for the innovativeness of the society at large; and the extent to which regulation is adapting to new (social, economic and technological) contexts and is socially legitimate and accepted. These are potentially the three problems that innovation policy needs to address in this area. This provides guidance for the design and re-design of innovation policy, so that policy makers may analyse empirically the social dynamics actually generated by regulation rather than simply assuming deductively their effects.
    Keywords: Innovation system; innovation policy; knowledge production; R&D; universities; innovation policy instruments; institutions; institutional change
    JEL: L38 M38 O25 O31 O32 O33
    Date: 2014–12–15
  9. By: Christian Jaag; Urs Trinkner; Jeffrey Yusof
    Abstract: This paper assesses the EU postal sector policy of the second Barroso Commission from 2010 to 2014. The main goal of the Commission is to achieve a single European market for postal services. The paper distinguishes between the following three objectives, whose implementation should lead to the achievement of an internal postal market: implementation of the Third Postal Directive; fostering e-commerce and parcel delivery; and enforce its State aid framework in the postal sector. The analysis shows that almost all Member States have transposed the Directive into national law and fully liberalized their markets, but nevertheless competition in all Member States has only developed to a limited extent. While there is strong growth of the e-commerce sector, a consistent alignment of State Aid policy with USO and full market opening is still under development.The current design of the USO and its financing may not be appropriate in times of fast changing technology and consumer needs. Therefore, the paper presents new approaches, suggesting to include new technologies or even proposing to establish an intermodal USO for postal and telecommunication services.
    Keywords: Third Postal Directive, single market, e-commerce, state aid, universal service obligations
    Date: 2014–12
  10. By: Juan J. Montero
    Abstract: The creation of a single European railway area is the overall policy objective of the European Union for the railway industry. Rail infrastructure management is seen as a natural monopoly to be operated at a national scale. Competition is possible downstream in the provision of rail transport services. A European-wide market of rail transport services would benefit from larger economies of scale, and competition would ensure such efficiencies are passed down to European citizens and businesses. However, the reform process has been set back by Member States that disagree with the full vertical separation of infrastructure management and transport service provision, as well as by Member States that want to delay the full liberalization of the industry. As a consequence, inconsistent national models are emerging and non-sustainable asymmetries between Member States are creating tensions. The Fourth Railway Package is the opportunity to conclude the European railway reform process, both for commercial services and for public contract services. Imaginative solutions are necessary to reach a workable consensus.
    Keywords: liberalization
    Date: 2014–12–02
  11. By: Chapin White Megan Eguchi
    Abstract: Reference pricing, or capping payment for a particular medical service, has been gaining interest as a strategy to reduce health care costs. Using private insurance data as a measure, reference pricing applied to a narrow scope of inpatient services was shown to produce limited savings—only a few tenths of a percentage of total spending; reference pricing applied to a much broader set of “shoppable†inpatient and ambulatory services was shown to potentially save about 5 percent of total spending. When considering reference pricing, employers and health plans would need to weigh the potential savings against the additional resources needed to implement and manage a more complex program.
    Keywords: Reference pricing, health care cost, insurance, price cap, autoworker
    JEL: I
    Date: 2014–10–01
  12. By: Reinhilde Veugelers
    Abstract: In this contribution we describe how green policies should be designed to activate private innovation forces for ecological transitions. We look at the evidence on the current deployment of green policies and the current performance of the private green innovation machine. We try to assess how strong which types of government interventions have and can be to power the green innovation machine. An important insight from the economic analysis of the effectiveness of the public intervention for green innovations, is the complementarity between policy instruments, requiring an adequate policy mix of instruments, rather than a focus on individual instruments. The evidence provides little support for the efficacy of single instruments, like subsidies, when used in isolation. For the EU, this is perhaps the biggest challenge for its green technology policy: the lack of a sufficiently high carbon price. And as the evidence has shown that the world of green science and technologies is an emerging global, multipolar one, with many geographically dispersed sources in the various green scientific fields and technologies, coordination of green policies internationally should therefore be high on the policy agenda.
    Keywords: Ecological innovation, Economic growth path, Globalisation, Green jobs, Innovation, Innovation policy, New technologies, Patents, Policy options, Research, Socio-ecological transition
    JEL: O31 O38
    Date: 2014–12

This nep-reg issue is ©2015 by Natalia Fabra. 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.
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