|
on Regulation |
| By: | José Marino García García; Aurelia Valiño Castro; A. Jesús Sánchez Fuentes |
| Abstract: | Network neutrality regulation prevents price discrimination from Access Providers to Content Providers and product differentiation in terms of connection quality in the retail broadband access market. This paper analyzes the economic implications of price discrimination under duopolistic competition and multi-dimensional product differentiation in retail internet access using a sequential-moves game theoretic model. Under this framework, we discuss the impact of product differentiation and price discrimination on social welfare, and offer systematic simulations using feasible ranges for parameters value to help discern the impact of departing from network neutrality regulation on social welfare. |
| Keywords: | network neutrality, two sided markets, price discrimination, product differentiation, queuing theory, network congestion, duopoly, competition policy. |
| JEL: | C70 D43 L10 L13 L51 L86 L96 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:gov:wpaper:1607&r=reg |
| By: | Tomas Balint (Centre d'Economie de la Sorbonne); Francesco Lamperti (Scuola Superiore Sant'Anna di Pisa - Institute of Economics and LEM); Antoine Mandel (Centre d'Economie de la Sorbonne - Paris School of Economics); Mauro Napoletano (OFCE-Sciences Po and SKEMA Business School (Sophia-Antipolis)); Andrea Roventini (Scuola Superiore Sant'Anna di Pisa - LEM and OFCE); Alessandro Sapio (University Parthenope of Naples) |
| Abstract: | We provide a survey of the micro and macro economics of climate change from a complexity science perspective and we discuss the challenges ahead for this line of research. We identify four areas of the literature where complex system models have already produced valuable insights: (i) coalition formation and climate negotiations, (ii) macroeconomic impacts of climate-related events, (iii) energy markets and (iv) diffusion of climate-friendly technologies. On each of these issues, accounting for heterogeneity, interactions and disequilibrium dynamics provides a complementary and novel perspective to the one of standard equilibrium models. Furthermore, it highlights the potential economic benefits of mitigation and adaptation policies and the risk of under-estimating systemic climate change-related risks |
| Keywords: | climate change; climate policy; climate economics; complex systems; agent-based models; socio-economic networks |
| JEL: | C63 Q40 Q50 Q54 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:16058&r=reg |
| By: | Matthew Gibson (Williams College) |
| Abstract: | Regulations may cause firms to re-optimize over pollution inputs, leading to unintended consequences. By regulating air emissions in particular counties, the Clean Air Act (CAA) gives rms incentives to substitute: 1) toward polluting other media, like landlls and waterways; and 2) toward pollution from plants in other counties. Using EPA Toxic Release Inventory data, I examine the eect of CAA regulation on these types of substitution. Regulated plants increase water emissions by 105 percent (72 log points). Regulation of an average plant increases air emissions at unregulated plants within the same firm by 13 percent. This leakage offsets 57 percent of emissions reductions by regulated firms. |
| JEL: | Q53 Q52 H23 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:wil:wileco:2016-04&r=reg |
| By: | Klaus Gugler (Department of Economics, Vienna University of Economics and Business); Adhurim Haxhimusa (Research Institute for Regulatory Economics, Vienna University of Economics and Business) |
| Abstract: | Using hourly data, we show that the convergence of German and French electricity spot prices depends on the employed generation mix structure, on the trade (export/import) capacity between the two countries, and on characteristics of neighbouring markets. Only when German and French electricity markets employ "similar" generation mixes price spreads vanish, and the likelihood for congestion of electricity flows is significantly reduced. This implies that, at least, a part of the convergence that was documented in recent literature is spurious, because it is not (only) driven by the forces of arbitrage, but by the similarity of the generation structures. The direction of congestion matters in this regard. Furthermore, we document consistent evidence for the most important predictions of trade theory if markets are characterized by increasing marginal cost (i.e. supply) curves and limited cross-border capacities. |
| Keywords: | Market Integration, Electricity, Renewables, Technology Differences, Jaffe Index |
| JEL: | D47 F15 L81 L98 Q42 Q48 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp237&r=reg |
| By: | Neuhoff, Karsten; Richstein, Joern; May, Nils |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esrepo:147412&r=reg |
| By: | Bardey, David; Santos, Nicolas; Tovar, Jorge |
| Abstract: | In this paper we estimate the degree of substitutability for advertisers across different media outlets. The estimates are motivated by the need that competition agencies have to properly characterize the relevant market when dealing with mergers in the media industry. As technology changes the industry, advertisers may not view a given media outlet as independent from those operating in other media platforms. Indeed, our results show that advertisers see outlets across platforms, either as substitutes or complements. From a policy perspective, our findings imply that competition agencies, particularly when defining relevant markets, should not assume that advertisers operate independently within a single media platform. |
| Keywords: | Media substitution, Cross Price elasticity, Advertising. |
| JEL: | D4 L L4 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:31125&r=reg |
| By: | Thomas Covert (University of Chicago); Michael Greenstone (University of Chicago); Christopher R. Knittel (MIT Sloan School of Management) |
| Abstract: | Scientists believe significant climate change is unavoidable without a drastic reduction in the emissions of greenhouse gases from the combustion of fossil fuels. However, few countries have implemented comprehensive policies that price this externality or devote serious resources to developing low carbon energy sources. In many respects, the world is betting that we will greatly reduce the use of fossil fuels because we will run out of inexpensive fossil fuels (i.e., decreases in supply) and/or technological advances will lead to the discovery of less expensive low carbon technologies (i.e., decreases in demand). The historical record indicates that the supply of fossil fuels has consistently increased over time and that their relative price advantage over low carbon energy sources has not declined substantially over time. Without robust efforts to correct the market failures around greenhouse gases, relying on supply and/or demand forces to limit greenhouse gas emissions is relying heavily on hope. |
| Keywords: | fossil fuels, alternative energy, renewables, climate change, fracking, technological change |
| JEL: | Q31 Q41 Q42 Q54 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:bfi:wpaper:2016-02&r=reg |
| By: | Janda, Karel; Tuma, Ladislav |
| Abstract: | We consider future prospects of solar energy in Central Europe. We first provide the description of the Czech energy situation with emphasize on photovoltaic energy. After that we estimate the merit-order effect. In last five years the Czech wholesale price of electricity decreased on average by 0.009 EUR/MWh. The total average merit-order effect over five-year period was 4.544 EUR/MWh. The effects were more pronounced in later years. New Czech solar projects are not viable without subsidies and new projects would not be able to profitable without public support. Thus solar power plants do not appear to be a reasonable choice in the Czech Republic. Nevertheless, low Czech wholesale electricity prices make all electricity sources not competitive. |
| Keywords: | solar; photovoltaics; electricity; merit order effect |
| JEL: | Q41 Q42 Q47 |
| Date: | 2016–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:74884&r=reg |