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on Regulation |
| By: | John J. García; Jesús López-Rodríguez; Jhonny Moncada-Mesa |
| Abstract: | Weather conditions in Colombia vary greatly throughout the territory and therefore the location of electricity generating plants plays a key role in their bid pricing strategies. To account for these location-specific pricing strategies this paper estimates a Spatial Durbin Model (SDM) with monthly data gathered from the 17th largest hydraulic electricity generating plants of Colombia on bid prices, generation, energy inputs and positive reconciliation over the period January 2005-August 2015 and controlling also for the system marginal prices and the economy cycle. The paper reports three main results. First, firms ? bid prices are negatively affected by the energy inputs of the rivals, second they are unaffected by positive reconciliation payments to the rivals and third they are negatively affected by the generation amounts of the rivals. One potential policy recommendation of these results is the need to implement balancing markets to signal more efficiently the pricing strategies in these markets. |
| Keywords: | Bid Price, wholesale electricity market, Spatial Durbin, Colombia |
| JEL: | C23 D43 L25 |
| Date: | 2017–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:col:000122:015660&r=reg |
| By: | Maarten C. W. Janssen; Santanu Roy |
| Abstract: | Firms communicate private information about product quality through a combination of pricing and disclosure where disclosure may be deliberately false. In a competitive setting, we examine the effect of regulation penalizing false disclosure. Stronger regulation reduces the reliance on price signaling, thereby lowering market power and consumption distortions; however, it often creates incentives for excessive disclosure. Regulation is suboptimal unless disclosure itself is inexpensive and even in the latter case, only strong regulation is welfare improving. Weak regulation is always worse than no regulation. Even high quality firms suffer due to regulation. |
| JEL: | L13 L15 D82 D43 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:vie:viennp:1705&r=reg |
| By: | Sander Heinsalu |
| Abstract: | This paper examines signalling when the sender exerts effort and receives benefits over time. Receivers only observe a noisy public signal about the effort, which has no intrinsic value. The modelling of signalling in a dynamic context gives rise to novel equilibrium outcomes. In some equilibria, a sender with a higher cost of effort exerts strictly more effort than his low-cost counterpart. The low-cost type can compensate later for initial low effort, but this is not worthwhile for a high-cost type. The interpretation of a given signal switches endogenously over time, depending on which type the receivers expect to send it. JEL classification: D82, D83, C73. Keywords: Dynamic games, signalling , incomplete information |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1707.04699&r=reg |
| By: | Bak, Céline; Bhattacharya, Amar; Edenhofer, Ottmar; Knopf, Brigitte |
| Abstract: | The authors propose a policy package of low-carbon growth stimulation through a steep increase in sustainable infrastructure, mobilizing sustainable finance, and adoption of carbon pricing to simultaneously achieve the objectives of the Paris Agreement and the Sustainable Development Goals. |
| Keywords: | Paris Agreement,climate change,infrastructure,carbon pricing,green finance |
| JEL: | D62 E62 H21 H22 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201741&r=reg |
| By: | Torrado, María; Escribano Sáez, Álvaro |
| Abstract: | Over the last decades a transition from a state-own monopoly to a private business took placein the Spanish fuel sector. To figure out whether downstream prices react differently toupstream price increases than to price decreases, alternative dynamic nonlinear andasymmetric error correction models are applied to weekly price data. This paper analyse theexistence of price asymmetries in the fuel market in Spain during the 2011-2016 period. Incomparison with traditional asymmetric price theory literature, this paper introduces a newdouble threshold error correction (ECM) model (DT-ECM) and new double logistic ECMmodels and compares them with more common linear ECM, time varying parameter models(TV-ECM), threshold autoregressive models (T-ECM), smooth transition autoregressive(STAR) models and nonlinear error correction (Logistic-ECM) and double threshold Logistic(DT-Logistic ECM). The nonlinear and asymmetric results found show that sophisticatedbivariate long-run asymmetries are present in the prices of the fuel sector and that those pricereactions depend on whether the oil price increases or decreases, on the stage of theproduction, the distribution chain as well as on the period considered. |
| Keywords: | Rockets and Feathers; Nonlinear Error Correction Models; Logistic-STAR Models; Double-Threshold-ECM models; Threshold-ECM models; Gasoline Price Asymmetries |
| JEL: | L71 L13 D43 C52 C24 B23 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:24984&r=reg |
| By: | Mihai, Florin-Constantin |
| Abstract: | The paper aims to reveal one integrated global map which points out the major geographical inequalities in providing basic utilities across the countries using multivariate analysis and thematic cartography. Sixteen indicators with global coverage were selected taking into account the waste collection services, sanitation facilities, drinking water sources, energy, electricity, habitat and demographic conditions. Several data are broken down for the total, urban and rural population in order to outline the rural-urban disparities between and within countries. A special focus is given to waste collection coverage, in order to compute a comprehensive global assessment of this key indicator of public health, which is one of the poorest monitored basic utility. The world countries were divided into 10 classes according to the hierarchical cluster analysis. Each class has particular features outlining the gaps between high, middle and low-income countries with direct impact on quality of life, public health, and environment. |
| Keywords: | drinking water, sanitation, waste wanagement , energy, utilities, public policy; pollution; environment; SDGs; human ecology; global inequalities |
| JEL: | O17 O18 Q40 Q5 Q50 Q53 Q56 R53 Z13 Z18 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80227&r=reg |
| By: | Li, Wanning; Tesfatsion, Leigh |
| Abstract: | The need for flexible service provision in electric power systems has dramatically increased due to the growing penetration of variable energy resources, as has the need to ensure fair access and compensation for this provision. A swing contract (SC) facilitates flexible service provision because it permits multiple service attributes to be offered together in bundled form with each attribute expressed as a range of possible values rather than as a single point value. This paper discusses a new SC Market Design for electric power systems that permits SCs to be offered by any dispatchable resource. An analytical optimization formulation is developed for the clearing of an SC day-ahead market that can be implemented using any standard mixed integer linear programming (MILP) solver. The practical feasibility of the optimization formulation is demonstrated by means of a numerical example. |
| Date: | 2017–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:201707020700001020&r=reg |