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on Regulation |
| By: | Glenn Sheriff; Ann E. Ferris; Ronald J. Shadbegian |
| Abstract: | Policy makers are keenly interested in environmental regulation’s employment impacts. Empirical research has relied on restrictive assumptions regarding institutional structure and definition of the regulated sector that can lead to mis-characterization of which plants get regulated, when they get regulated, and how stringent their regulations are. We relax these assumptions to develop a nuanced understanding of how the Clean Air Act’s Ozone National Ambient Air Quality Standards affected the U.S. electric power sector in the 1990s. We find that abstracting from regulatory details can lead to underestimation of relative historical local impacts and overestimation of relative projected local impacts of possible future regulation. |
| Keywords: | environment, regulation, energy, labor |
| JEL: | Q52 Q53 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201501&r=reg |
| By: | Richard Schmalensee; Robert Stavins |
| Abstract: | This essay provides an overview of the major emissions trading programs of the past thirty years on which significant documentation exists, and draws a number of important lessons for future applications of this environmental policy instrument. References to a larger number of other emissions trading programs that have been implemented or proposed are included |
| JEL: | Q40 Q48 Q54 Q58 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21742&r=reg |
| By: | Heather Klemick; Elizabeth Kopits; Ann Wolverton |
| Abstract: | Commercial buildings offer opportunities for companies to reduce energy use that, according to engineering analyses, should save them money while also lowering greenhouse gas (GHG) and other polluting emissions. Supermarket refrigeration is one sector with ample energy-efficiency and emission-reducing investment options. This study explores the evidence of an energy efficiency paradox for supermarket refrigeration technologies that are estimated to reduce energy and emissions while providing net cost savings for firms. We conduct interviews and focus groups with representatives from 44 small, medium, and large US supermarket chains. We focus on the refrigeration system given its dominant role in determining store electricity consumption and GHG emissions. Consistent with the economics literature on the energy-efficiency paradox, we distinguish between market failures, behavioral anomalies, and other factors not accounted for in typical NPV or payback calculations for supermarket refrigeration technologies. Imperfect information and uncertainty about the performance of new technologies were the most pervasive barriers among participants, though split incentives between firms and contractors or employees, liquidity constraints, tradeoffs with other valued system attributes like reliability and customer appeal, and certain behavioral anomalies also play a role among some firms. |
| Keywords: | energy efficiency paradox, market failures, technology investment barriers, supermakets |
| JEL: | Q48 Q52 Q58 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201503&r=reg |
| By: | Karimu, Amin (CERE and the Department of Economics, Umeå University); Brännlund, Runar (CERE and the Department of Economics, Umeå University) |
| Abstract: | This paper present a different perspective in the debate on energy efficiency and energy demand by classifying the impact of efficiency measures into direct and indirect effect (rebound effect). It examines the direct effect of energy efficient R&D capital on energy demand. Using a sample of OECD countries, we find evidence of negative own-R&D capital elasticity with respect to energy demand. Moreover, we find evidence of heterogeneity in the predicted impact of energy efficient R&D capital, with the USA having the largest accumulated reduction in energy demand and Portugal with the smallest. Overall, our empirical results suggest a reasonable reduction in energy demand and the associated CO2 emissions from an increase in energy efficient R&D investment based on the direct effect, which differ between the countries, suggesting possible differences in abatement cost and the level of implementation of energy efficient R&D activities. |
| Keywords: | Efficiency Policy; Energy Demand; Heterogeneity; R&D capital; Spillovers |
| JEL: | C33 Q41 Q49 |
| Date: | 2015–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2015_014&r=reg |
| By: | Heather Klemick; Elizabeth Kopits; Keith Sargent; Ann Wolverton |
| Abstract: | Economic theory suggests that profit maximizing firms should have an incentive to incorporate technologies into their products that are cost-effective, absent consideration of externalities. Even in the presence of uncertainty and imperfect information – conditions that hold to some degree in every market – firms are expected to make decisions that are in the best interest of the company owners and/or shareholders. However, simple net present value calculations comparing upfront costs of fuel-saving technologies to future savings suggest this is not always the case. This puzzle has been observed in a variety of contexts and is commonly referred to as the “energy efficiency paradox.” A growing number of empirical studies in the peer-reviewed literature examine why households may under-invest in energy efficiency. To our knowledge, far fewer studies examine whether similar undervaluation occurs on the part of businesses. While a variety of hypotheses could explain this behavior, lack of empirical evidence on why businesses do not always invest in seemingly cost-effective energy saving technologies limits our ability to judge whether and when a given hypothesis is likely to be valid. In this paper, we explore capital investment decisions within the heavy duty trucking sector for fuel-saving technologies. Given the lack of readily available data sources to study this industry, we collect information via a combination of focus groups and interviews. While the sample is not representative, we gain insight into what factors might explain apparent underinvestment in emission reducing technologies absent government regulation. |
| Keywords: | energy efficiency paradox, technology investment decisions, heavy duty trucking |
| JEL: | Q48 Q52 Q58 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201402&r=reg |
| By: | Strunz, Sebastian; Gawel, Erik; Lehmann, Paul; Söderholm, Patrik |
| Abstract: | The literature on policy convergence has identified numerous aspects and possible causal drivers of convergence. We classify and condense these into a comprehensive framework, which is operationalized for support policies for renewable energy sources in the EU. Our analysis advances the conceptual discussion in two ways. First, we demonstrate that conceptual specifications of convergence (e.g., whether to focus on policy targets, instrument design or policy outcomes) rely on normative assumptions. Second, we argue that theories of economic and political convergence processes complement each other: studies of economic convergence are apolitical as they do not aim to explain why states choose or should choose the same policies to solve a given problem. At the same time, economic convergence yields a necessary condition for successful policy convergence. The empirical evidence, in turn, suggests conditional convergence of support policies and renewables shares in the EU, but does not hint at absolute convergence. |
| Keywords: | economic convergence,policy convergence,renewable energy sources,support policies |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzdps:142015&r=reg |
| By: | Andreas Karpf (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Antoine Mandel (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Stefano Battiston (Department of Banking and Finance - UZH - University of Zürich [Zürich]) |
| Abstract: | This paper analyses the European Emission Trading System (ETS) from a network perspective. It is shown that the network exhibits a strong core-periphery structure also reflected in the network formation process. Due to a lack of centralized market places, operators of installations which fall under the EU ETS regulations have to resort to local networks or financial intermediaries if they want to participate in the market. This undermines the central idea of the ETS to exploit marginal abatement costs. |
| Keywords: | network,emission market,ETS,network topology |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01243694&r=reg |
| By: | Farrell, Niall |
| Abstract: | Carbon taxes increase the cost of necessary household energy expenditures. In many developed countries, carbon taxes are regressive as they comprise a greater proportion of a poorer household’s income. Certain socioeconomic groups are more negatively affected by these impacts than others. While inequality of incidence by income group has received great attention in the literature, a gap exists to quantify the inequality associated with socioeconomic characteristics. This information is policy-relevant as it may inform the most effective means to offset negative welfare impacts through changes to taxes and/or social transfers. This paper provides this contribution. First, the inequality of carbon tax incidence across the income spectrum is quantified using the concentration index methodology. A subsequent multivariate decomposition quantifies the contribution each socioeconomic factor makes towards this inequality of incidence. This is carried out for electricity, motor fuel and all other home fuels to elicit variation of socioeconomic incidence by source. While income contributes a great deal towards inequality of incidence for other home fuels, socioeconomic characteristics are the primary determinants of electricity and motor fuel-related carbon tax incidence. The relative importance of each characteristic in determining regressive impacts is quantified and this varies by carbon tax source. |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp519&r=reg |
| By: | Farrell, Niall; Devine, Mel |
| Abstract: | Renewable energy deployment costs comprise both internal generation costs and external location-related infrastructure, environmental and social costs. To minimise generation costs, competitive connection contract auctions are becoming increasingly common. Should external costs have considerable influence on site selection outside of the auction process, optimal bidding strategies may be affected by the resulting re-ranking of winning bids. This paper elicits the impact this may have on optimal bidding behaviour. Specifically, we address the impact internalisation of external costs may have on bidding strategy. With deterministic generation costs, optimal bidding strategies include a markup. The optimal markup is lower if external costs are internalised into the investment decision. If investors have the ability to appropriate rents, due to market dominance or asymmetric information, non-internalised external costs lower markup. Generation cost uncertainty may result in below-cost bidding. This is less likely when externalities are not internalised. For markets where bids are competitively priced, this paper provides evidence to suggest that methods to minimise externalities associated with renewables deployment should be integrated with competitive pay-as-bid auctions. |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp517&r=reg |
| By: | Angelo Castaldo; Alessandro Fiorini; Bernardo Maggi (Università Sapienza di Roma - Dipartimento di Studi Giuridici, Filosofici ed Economici) |
| Abstract: | Technological innovation is viewed as a major stimulus for economic growth. High-speed internet access via broadband infrastructure has been experiencing a prompt development since the end of 90s, thanks to the deployment of both fix and mobile technologies. The present study investigates on the behavior of broadband diffusion as a technological determinant of economic growth in the main OECD countries. The estimations performed allowed to control and interpret the time evolution of the phenomenon according to the achievable target of growth, as resulting from the promotion of broadband internet connections. Our main goal is to provide evidence of a relevant - in quantitative term - relation between broadband diffusion and economic dynamics in the short, medium and long run. |
| Keywords: | Fixed broadband access, economic growth, technology diffusion, dynamic panel |
| JEL: | L96 O47 O33 H54 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:gfe:pfrp00:00017&r=reg |
| By: | DE CORTE, Annelies; SÖRENSEN, Kenneth |
| Abstract: | Water distribution networks consist of different components, such as reservoirs and pipes, and exist to provide users with drinking water at adequate pressure and ow. Water distribution network design optimization aims to find optimal diameters for every pipe, chosen from a limited set of commercially available diameters. This combinatorial optimization problem has received a lot of attention over the past thirty years. In this paper, the well-studied single-period problem is extended to a multi-period setting in which dynamic demand patterns occur. Moreover, an additional constraint, which sets a maximum water velocity, is imposed. A metaheuristic technique, called iterated local search, is applied to tackle this challenging optimization problem. The iterated local search algorithm is developed in a lean way. Lean is a term originating from production management and implies reducing all forms of waste. Therefore, a lean algorithm is one that is reduced to its core and only includes those components that show a significant added value. This added value is demonstrated by means of a full-factorial experiment. The algorithm, in its optimal configuration, is tested on a broad range of 240 different (freely available) test networks. |
| Keywords: | Water distribution network design, Iterated local search, Metaheuristic, Mixed-integer non-linear programming, Pipe sizing |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:ant:wpaper:2015020&r=reg |
| By: | Paula Kivimaa (Science Policy Research Unit SPRU, University of Sussex, Jubilee Building, Falmer, Brighton BN1 9SL, UK.; Finnish Environment Institute, P.O. Box 140, 00260 Helsinki, Finland.); Mikael Hildén (Finnish Environment Institute, P.O. Box 140, 00260 Helsinki, Finland.); Dave Huitema (IVM Institute for Environmental Studies, VU University Amsterdam, De Boelelaan 1087 1081 HV Amsterdam, The Netherlands.; Department of Science, Netherlands Open University, Valkenburgerweg 177, 6419 AT Heerlen, The Netherlands.); Andrew Jordan (Tyndall Centre, University of East Anglia, Norwich, UK.); Jens Newig (Leuphana University Lüneburg, Germany.) |
| Abstract: | Experimentation has been proposed as one of the ways in which public policy can drive sus-tainability transitions, notably by creating or delimiting space for experimenting with innova-tive solutions to sustainability challenges. In this paper we report on a systematic review of articles published between 2009 and 2015 that have addressed experiments aiming either at understanding decarbonisation transitions or enhancing climate resilience. Using the case survey method, we find few empirical descriptions of real-world experiments in climate and energy contexts in the scholarly literature, being observed in only 25 articles containing 29 experiments. We discuss the objectives, outputs and outcomes of these experiments noting that explicit experimenting with climate policies could be identified only in 12 cases. Based on the results we suggest a definition of climate policy experiments and a typology of experi-ments for sustainability transitions that can be used to better understand the role of and learn more effectively from experiments in sustainability transitions. |
| Keywords: | policy innovation; experiment; experimentation; sustainability transitions; climate policy |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2015-36&r=reg |
| By: | Tiziana D'Alfonso (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy); Changmin Jiang (Asper School of Business, University of Manitoba, 181 Freedman Crescent, Winnipeg, Canada); Valentina Bracaglia (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy) |
| Abstract: | We develop a duopoly model to analyse the environmental impact of high-speed rail (HSR) introduction in a market for travel served by air transport. We take into account simultaneously the effects on the environment of induced demand, schedule frequency and HSR speed and we show that competition between the two modes may be detrimental to the environment depending on the magnitude of the pollution level of HSR relative to air transport. We conduct a simulation study based on the LondonÐParis market and we find that the introduction of HSR increases local air pollution (LAP) but decreases greenhouse gases (GHG) emissions. Moreover, we perform a sensitivity analysis of our results towards the level of HSR and air transport emissions. We find that modal competition is more likely to be detrimental to the environment when such ratio is relatively high. Furthermore, when mixed public/private-owned HSR takes into account the surplus of consumers and the surplus that the other (air) transport operator brings about, we find that modal competition is more likely to be detrimental to the environment than in the case of a fully private HSR. Finally, we provide an interpretive discussion of the results with respect to the different mitigation strategies available to the two transport modes and EU policy measures for the environment Ð which might jointly affect the ratio between HSR and air transport emissions. |
| Keywords: | High-speed rail ; Airlines ; Competition ; Environment ; Mitigation Policies ; London-Paris market |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:aeg:report:2015-15&r=reg |