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on Regulation |
| By: | Harrison Fell (Division of Economics and Business, Colorado School of Mines); Peter Maniloff (Division of Economics and Business, Colorado School of Mines) |
| Abstract: | Subglobal and subnational policies aimed at reducing greenhouse gases are often thought to be less effective than more geographically comprehensive policies as production, and thus emissions, of trade exposed industries may move from the regulated to the unregulated regions. This so-called leakage may negate all emission reductions from the regulated regions and, even worse, may lead to an overall increase in emissions if the unregulated regions have equally or more emissions intensive production. However, if the unregulated regions have less emissions intensive production, the regional regulation may prompt more switching to the relatively cleaner producers than would otherwise occur, creating a type of beneficial leakage. We use detailed electricity generation and transmission data to show that this might be the case for the Regional Greenhouse Gas Initiative (RGGI), a CO$_2$ cap-and-trade program for the electricity sector in select Northeastern U.S. states. We find evidence that electricity generation did leak out of the RGGI region to surrounding state, but electricity generation in the non-capped jurisdictions is less emissions intensive than in the RGGI region, resulting in a net decrease in aggregate emissions. Back-of-the-envelope calculations suggest that one-quarter of apparent emissions reductions actually leaked but that this served to reduce total combined emissions by an additional one percent. |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:mns:wpaper:wp201506&r=reg |
| By: | Nielsen, Martin (Department of Business and Economics) |
| Abstract: | This paper analyzes the way payments by content providers to an Internet service provider may affect investment in Internet speed and content quality. It derives payment mechanisms capable of aligning investment incentives between the two groups; in fact, some of them are Pareto-improving also for consumers, who are willing to pay for quality of content. On the other hand, some parameter combinations may require public intervention for Pareto improvement to be attained. |
| Keywords: | Internet regulation; Network neutrality; Investment incentives; Monopoly; Duopoly; Regulation; Internet content; Netflix; Internet service providers; AT&T; Verizon; Comcast |
| JEL: | C72 D42 D43 L12 L13 L14 |
| Date: | 2015–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sdueko:2015_011&r=reg |
| By: | Landis,Florian; Timilsina,Govinda R. |
| Abstract: | Large-scale deployment of renewable energy technologies, such as wind power and solar energy, has been taking place in industrialized and developing economics mainly because of various fiscal and regulatory policies. An understanding of the economy-wide impacts of those policies is an important part of an overall analysis of them. Using a perfect foresight computable general equilibrium model, this study analyzes the economy-wide costs of achieving a 10 percent share of wind power in Brazil?s electricity supply mix by 2030. Brazil is in the midst of an active program of wind capacity expansion. The welfare loss would be small, 0.1 percent of total baseline welfare in the absence of the 10 percent wind power expansion. The study also finds that, in the case of Brazil, production subsidies financed through increased value-added tax would have superior impacts on welfare and greenhouse gas mitigation, compared with a consumption mandate where electricity utilities are allowed to pass the increased electricity supply costs directly to consumers. These two policies would impact various production sectors differently to achieve the wind power expansion targets: the burden of the mandate falls mostly on electricity-intensive production and consumption, whereas the burden of the subsidy is distributed toward goods and services with higher value added. |
| Keywords: | Energy Production and Transportation,Environment and Energy Efficiency,Climate Change Mitigation and Green House Gases,Climate Change Economics,Energy and Environment |
| Date: | 2015–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7346&r=reg |
| By: | Maciej Lis; Agata Miazga |
| Abstract: | Facing rising energy prices, what are expected to be an outcome of climate package, some household groups will reduce other expenditure in order to satisfy the energy consumption needs. According to Eurostat statistics, energy prices in Poland are lower than in other EU member states, but relatively high when compared to prices of other goods and services. On the basis of the 2013 Polish Household Budget Survey, we analyse determinants of energy prices. We demonstrate that electricity spending is stronger related to household characteristics, whereas heating expenditures to building characteristics. We show that increasing electricity prices affect mainly the most populous households, in particular large families. Contrary, changes in heating prices affect mostly residents of old, large houses, in small towns and in the countryside. Therefore, limiting the energy inefficiency of non-insulated buildings and more education about energy saving are crucial to minimize the social cost of climate policy. |
| Keywords: | energy expenditures, electricity expenditures, heating expenditures, household expenditures, energy prices, energy efficiency |
| JEL: | D12 Q41 Q48 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:wpaper:wp112015&r=reg |
| By: | Yacoub Bahini (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS); Cuong Le Van (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, VCREME - VanXuan Center of Research in Economics, Management and Environment - VanXuan Center of Research in Economics, Management and Environment, IPAG - Business School) |
| Abstract: | In this paper we use the CMM model (Chakravorty et al., 2006) in discrete time and obtain more results concerning the exhaustion time of Non-Renewable Resource (NRE), the dynamic regimes of energy prices, of the stocks of pollution. We show that NRE is exhausted in finite time and is directly influenced by the initial stock of NRE and the costs of NRE and RE. Higher is the initial stock of NRE, far is the time of exhaustion of NRE. Higher is the cost of NRE (resp. the difference of unit costs between RE and NRE), far is the time of exhaustion of NRE. Furthermore, we show that the abatement intervenes, when necessary, not more than two periods. We also show that, when the unit extraction cost of RE is not very high, the stocks of emissions will never be binding if and only if, the initial stock of NRE is less than a critical value. |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01167042&r=reg |
| By: | Coyne, Bryan; Lyons, Sean |
| Abstract: | This paper investigates how retail broadband prices, choice and quality are changing over time. Using a dataset containing daily observations of plans offered in Ireland from 2007 to 2013, this paper applies hedonic modelling techniques to observe the changing pricing of service characteristics. We augment our results by restricting the analysis to large operators and also by weighting by operator market share for a subset of our data (2010-2013). Although we find that average nominal prices remain static throughout our sample period, quality of service has risen dramatically over time, particularly with respect to download speed. Some characteristics of broadband plans exhibit broadly stable valuations over time, but the elasticity of price with respect to advertised download speed and the premium on bundled plans declined during the sample period. In addition, the retail price premium enjoyed by the incumbent operator fell significantly since 2007. |
| Keywords: | broadband services, market analysis, Ireland |
| JEL: | L11 L96 |
| Date: | 2015–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65375&r=reg |