|
on Regulation |
| By: | Carol A. Dahl (Division of Economics and Business, Colorado School of Mines); Tyler Hodge (U.S. Energy Information Administration) |
| Abstract: | This paper contains a dynamic conduct parameter model to look at the pricing behavior of five power marketers in the California Power Exchange (CalPX) on daily data for 2000. Only our previous paper Hodge and Dahl (2012) specifically focused on just the electric power marketers. In this paper we compare a dynamic conduct parameter with that of our earlier static model to test whether the static estimates are biased downwards or towards not rejecting the null hypothesis of no market power. We estimate the model using generalized methods of moments on data for each marketer. We find more evidence of collusive behavior with the dynamic than the earlier static model estimates. |
| Keywords: | Electricity, Conduct Parameter, Dynamic, Marketer |
| JEL: | L10 L94 Q40 Q41 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:mns:wpaper:wp201215&r=reg |
| By: | Renda, Andrea |
| Abstract: | On 19 May 2015, the European Commission published a very comprehensive, ambitious and innovative Better Regulation package, which contains new guidelines on various phases of the policy cycle and various documents setting out the rules and functioning of entirely new consultation platforms and a new body in charge of regulatory scrutiny. This Special Report presents some initial impressions on the content of this remarkable set of new documents, which will shape the way in which EU policies will be prepared, shaped, monitored and evaluated in the years to come. |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:eps:cepswp:10600&r=reg |
| By: | Vesterberg, Mattias (Department of Economics, Umeå School of Business and Economics); Kiran B. Krishnamurthy, Chandra (Beijer Institute of Ecological Economics, The Royal Academy of Sciences); Bayrak, Oben (Department of Forest Economics, SLU) |
| Abstract: | Using a household appliance metering data set from the Swedish Energy Agency, this paper focuses on understanding the determinants of end-use electricity demand for Sweden. The focal point of the analysis is the estimation of end-use-specific income elasticity of electricity demand, for the first time for Sweden. A seemingly unrelated regression framework is used for understanding the determinants of end-use demand, with the end-uses being heating, kitchen, lighting, and residual. The main results of the analysis are: high aggregate elasticity (above 0.6), and very high income elasticity of electric heating (above 0.8). Other size-related variables (size of home, number of people) do not appear to have significant explanatory power. Overall, our analysis indicates that income is a key factor determining the demand for electricity, and to a much larger extent than usually considered. |
| Keywords: | Direct Metering; Residential Electricity Demand; income elasticity |
| JEL: | C30 D12 Q40 Q41 |
| Date: | 2015–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0910&r=reg |
| By: | Jamasb,Tooraj; Nepal,Rabindra; Timilsina,Govinda R. |
| Abstract: | It has been more than two decades since the widespread initiation of global power sector reforms and restructuring. However, empirical evidence on the intended microeconomic, macroeconomic, and quality-related impacts of reforms across developing countries is lacking. This paper comprehensively reviews the empirical and theoretical literature on the linkages between power sector reforms, economic and technical efficiency, and poverty reduction. The review finds that the extent of power sector reforms has varied across developing countries in terms of changes in market structures, the role of the state, and the regulation of the sector. Overall, the reforms have improved the efficiency and productivity in the sector among many reforming countries. However, the efficiency gains have not always reached the end consumers because of the inability of sector regulators and inadequate regulatory frameworks. Reforms alleviate poverty and promote the welfare of the poor only when the poor have access to electricity. From a policy-making perspective, this implies that the reforms need to be supplemented with additional measures for accelerating electrification to help the poor. |
| Keywords: | Energy Production and Transportation,Infrastructure Regulation,Climate Change Mitigation and Green House Gases,Electric Power,Infrastructure Economics |
| Date: | 2015–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7330&r=reg |
| By: | Caillaud, Bernard; Demange, Gabrielle |
| Abstract: | This paper analyzes the joint design of fiscal and cap-and-trade instruments in climate policies under uncertainty. Whether the optimal mechanism is a mixed policy (with some firms subject to a tax and others to a cap-and-trade) or a uniform one (with all firms subject to the same instrument) depends on parameters reflecting preferences, production, and, most importantly, the stochastic structure of the shocks affecting the economy. This framework is then used to address the issue of the non-cooperative design of ETS in various areas worldwide and to characterize the resulting inefficiency and excess in emission. We provide a strong Pareto argument in favor of merging ETS of different regions in the world and evaluate the welfare gains in each region. |
| Keywords: | cap-and-trade mechanisms; climate policies; tax |
| JEL: | D62 H23 Q54 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10671&r=reg |
| By: | Karen E. Wilson |
| Abstract: | There has been increasing concern from policy makers around the world about the lack of access to finance for young innovative firms. As a result, governments in many OECD countries have sought to address the financing gap and perceived market failures by supporting the seed and early stage market. This paper seeks to summarise the lessons learned in seed and early stage finance based on OECD work over the past several years focused on policies related to financing high growth firms, including angel investment and venture capital. That research was supplemented with a questionnaire on seed and early stage financing policies in 2012 and a series of policy workshops held between 2012 and 2014. The workshops provided deeper insights into experiences and lessons learned from OECD member countries. The OECD has been working on seed and early stage finance within the Committee for Industry, Innovation and Entrepreneurship (CIIE) in the Directorate for Science, Technology and Industry as well as across other Directorates. This work has highlighted the growth in seed and early stage finance policies as well as the importance of high-growth firms for job creation and the role that financial development and other policies play in firm dynamics and the growth of such firms. |
| Date: | 2015–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:24-en&r=reg |
| By: | Renda, Andrea |
| Abstract: | EU Internet policy seems bewitched by the term ‘neutrality’, applied to networks and now search engines and other online platforms. Andrea Renda questions in this latest Special Report whether this is this a good way to protect end users. Originally confined to the infrastructure layer, today the neutrality rhetoric is being expanded to multi-sided platforms such as search engines and more generally online intermediaries. Policies for search neutrality and platform neutrality are invoked to pursue a variety of policy objectives, encompassing competition, consumer protection, privacy and media pluralism. This paper analyses this emerging debate and comes to a number of conclusions. First, mandating net neutrality at the infrastructure layer might have some merit, but it certainly would not make the Internet neutral. Second, since most of the objectives initially associated with network neutrality cannot be realistically achieved by such a rule, the case for network neutrality legislation would have to stand on different grounds. Third, the fact that the Internet is not neutral is mostly a good thing for end users, who benefit from intermediaries that provide them with a selection of the over-abundant information available on the Web. Fourth, search neutrality and platform neutrality are fundamentally flawed principles that contradict the economics of the Internet. Fifth, neutrality is a very poor and ineffective recipe for media pluralism, and as such should not be invoked as the basis of future media policy. All these conclusions have important consequences for the debate on the future EU policy for the Digital Single Market. |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:eps:cepswp:10472&r=reg |
| By: | Riham Ahmed Ezzat (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS, FEPS - Faculty of Economics and Political Science) |
| Abstract: | Since the 1980s, developing countries started adopting telecom reforms due to pressures from international institutions. However, Middle East and North African (MENA) countries lagged in adopting such reforms. Even after introducing telecom reforms in the MENA region beginning in 1995, not all countries became better off in terms of various performance indicators. Therefore, this paper empirically assesses the effects of regulation, privatization and liberalization reforms, as well as their simultaneous presences, in the telecommunication sector on the sector's performance using a sample of 17 MENA countries for the period 1995-2010. We assume that different reforms are affected by institutional, political and economic variables with respect to the level of democracy, the legal origin, the natural resources rents per country and the year of independence from colonization. We correct for the endogeneity of telecom reforms, and we use IV-2SLS (Instrumental Variable-Two Stages Least Squares) estimation to analyze their effect on telecom performance in terms of access, productivity and affordability. We find that the privatization of the main incumbent operator and the fixed-line market's liberalization affect the sector's performance negatively in terms of fixed access and affordability. Moreover, we find that the simultaneous presence of an independent regulator and a privatized incumbent helps to eliminate the drawbacks on the sector performance resulting from privatization. However, the simultaneous presences of the other reforms in terms of regulation-competition and privatization-fixed competition do not help to improve the sector's performance. |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01164199&r=reg |
| By: | Daiju Narita; Gernot Klepper |
| Abstract: | Carbon dioxide capture and storage (CCS) is considered to be an important option for reducing carbon dioxide (CO2) emissions. However, there are still concerns about its economic viability, especially if the risk of leakage in the storage site is taken into account. We use a real options approach for assessing the impact of uncertainty on the timing and the profitability of CO2 storage projects. We model an investment decision for a storage site under uncertainty about CO2 leaking from the storage site, about the development of carbon prices, and about the cost of investment. The numerical model results show that investment under these uncertainties requires a much larger price for carbon credits for storage than an investment plan ignoring uncertainty would suggest. We also show under reasonable parameter assumptions that the risk for investing in CO2 storage is dominated by the uncertain development of carbon prices, whereas the risk of carbon leakage has little influence on the investment decision |
| Keywords: | Carbon dioxide capture and storage (CCS), real options analysis, climate policy |
| JEL: | D81 Q49 Q54 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:2002&r=reg |
| By: | Galassi, Veronica (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | The future diffusion of photovoltaic systems relies heavily on the ability of utilities and policy-makers to properly valorize such volatile renewable energy-sources technologies. We conduct a discrete choice experiment to investigate which types of business models for photovoltaic systems could bring the highest utility to the Italian households. Our focus is not just on the costs and benefits of a photovoltaic system, but also on features like system control and maintenance, the duration of the electricity supply contract, as well as preferred channels of purchase and installation. Most importantly, we also include alternatives with battery storage. The data analysis – based on the Hierarchical Bayes estimation technique – reveals credible preferences for PV photovoltaic systems with battery storage facilities controlled by the utility or solutions characterized by lower investment costs. Multivariate analysis of variance coupled with the estimation of a random effects model with mixture of normal distributions suggests the presence of some heterogeneity across adopters and knowledgeable non-adopters, the latter particularly involving risk perception. Sensitivity analysis provides additional evidence in favor or these findings. On the basis of the results, we provide utilities and policy-makers with final recommendations. |
| Keywords: | DCE; Residential PV; Energy storage; Feed-in tariff |
| JEL: | C25 D12 O33 Q42 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2014_019&r=reg |