nep-reg New Economics Papers
on Regulation
Issue of 2017‒09‒10
25 papers chosen by
Natalia Fabra
Universidad Carlos III de Madrid

  1. Market design for a high-renewables European electricity system By Newbery, D.; Pollitt, M.; Ritz, R.; Strielkowski, W.
  2. What future(s) for liberalized electricity markets: efficient, equitable or innovative? By Newbery, D.
  3. Equilibrium supply security in a multinational electricity market with renewable production By Tangeras, T.; ; ;
  4. Equilibrium Provider Networks: Bargaining and Exclusion in Health Care Markets By Kate Ho; Robin Lee
  5. Distributed Photovoltaic Power Generation: Possibilities, Benefits, and Challenges for a Widespread Application in the Mexican Residential Sector By Hancevic, Pedro; Nuñez, Héctor; Rosellón, Juan
  6. A system operator's utility function for the frequency response market By Greve, T.; Teng, F.; Pollitt, M.; Strbac, G.
  7. Small Systems, Big Targets: Power Sector Reforms and Renewable Energy Development in Small Electricity Systems By Nepal, R.; Jamasb, T.; Sen, A.; Cram, L.
  8. Going Fast or Going Green? Evidence from Environmental Speed Limits in Norway. By Folgerø, Ingrid Kristine; Harding, Torfinn; Westby, Benjamin
  9. Heat or power: how to increase the use of energy wood at the lowest costs? By Vincent Bertrand; Sylvain Caurla; Elodie Le Cadre; Philippe Delacote
  10. A Social Cost Benefit Analysis of Grid-Scale Electrical Energy Storage Projects: Evaluating the Smarter Network Storage Project By Sidhu, A.; Pollitt, M.; Anaya, K.
  11. Advertising and investment spillovers in the diffusion of residential energy efficiency renovations By Collins, Matthew; Curtis, John
  12. Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry By Philippe Aghion; Antoine Dechezleprêtre; David Hémous; Ralf Martin; John Van Reenen
  13. Competitive Neutrality and the Cost and Quality of Welfare Services By Stennek, Johan
  14. The economics of air pollution from fossil fuels By Newbery, D.
  15. How consumers of plastic water bottles are responding to environmental policies? By Caroline Orset; Nicolas Barret; Aurélien Lemaire
  16. Crowding in public transport: Who cares and why? By Luke Haywood; Martin Koning; Guillaume Monchambert
  17. Incomplete Contracts, Shared Ownership, and Investment Incentives By Schmitz, Patrick W.
  18. Market Power in the Capacity Market? The Case of Ireland By Teirila, J.
  19. Does the literature support a high willingness to pay for green label buildings? An answer with treatment of publication bias By Florian Fizaine; Pierre VoyŽ; Catherine Baumont
  20. Did the Renewable Fuel Standard Shift Market Expectations of the Price of Ethanol? By Christiane J.S. Baumeister; Reinhard Ellwanger; Lutz Kilian
  21. Environmental expenditure disclosure strategies in a regulated context By Florence Depoers; Tiphaine Jérôme
  22. Scheduling electric vehicles and locating charging stations on a path By Boysen, Nils; Briskorn, Dirk; Emde, Simon
  23. Clean Energy Innovation in Latin America By Miller, Justin; Viscidi, Lisa
  24. What did we recently learn about the evaluation of energy efficiency policies and programmes? Insights from IEPPEC 2014 in Berlin By Jean-Sébastien Broc; Catherine Cooremans
  25. A vision and action plan for a low-carbon Europe By Olav Øye; Laura Aelenei; Line Barkved; Stan Beaubien; Teresa Bertrand; Miriame Cherbib; Sirin Engen; Emily Creamer; Anna Ernst; Marie Gastine; Vasiliki Gemeni; Minh Ha-Duong; Ales Havlin; Vit Hladik; Lucia Hrivnakova; Nikolaos Koukouzas; Carly Maynard; Ron Overgoor; Ana Picado; Stefano Pirrotta; Melanie Provoost; Sandra Ramos; Stijn Santen; Konstantinos Sfetsioris; Simon Shackley; Camilla Svendsen Skriung; Robert van Der Lande; Gert-Jan van Der Panne; Vong Chan Quang; Samuela Vercelli

  1. By: Newbery, D.; Pollitt, M.; Ritz, R.; Strielkowski, W.
    Abstract: This paper presents a set of policy recommendations for the market design of a future European electricity system characterized by a dominant share of intermittent renewable energy supply (RES), in line with the stated targets of European governments. We discuss the market failures that need to be addressed to accommodate RES in liberalized electricity markets, review the evolution of the EU's RES policy mechanisms, and summarize the key market impacts of RES to date. We then set out economic principles for market design and use these to develop our policy recommendations. Our analysis covers the value of interconnection and market integration, electricity storage, the design of RES support mechanisms, distributed generation and network tariffs, the pricing of electricity and flexibility as well as long-term contracting and risk management.
    Keywords: Electricity markets, wholesale market design, renewable energy, interconnection, electricity storage, long-term contracts, capacity markets
    JEL: H23 L94 Q28 Q48
    Date: 2017–07–16
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1726&r=reg
  2. By: Newbery, D.
    Abstract: Well-designed electricity liberalization has delivered efficiency gains, but political risks of decarbonizing the sector have undermined investment incentives in energy-only markets, while poorly designed regulated tariffs have increased the cost of accommodating renewables. The paper sets out principles from theory and public economics to guide market design, capacity remuneration, renewables support and regulatory tariff setting, illustrating their application in a hypothetical high capital cost low variable cost electricity system in "Andia" that resembles Peru. Such characteristics are likely to become more prevalent with increasing renewables penetration, where poor regulation is already threatening current utility business models. The appendix develops and applies a method for determining the subsidy justified by learning spillovers from solar PV.
    Keywords: Electricity market design, tariffs, renewables support, utilities
    JEL: D44 L51 L94 Q40 Q48 Q51
    Date: 2017–03–17
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1714&r=reg
  3. By: Tangeras, T.; ; ;
    Abstract: An increasing reliance on solar and wind power has raised concern about system ability to consistently satisfy electricity demand. This paper examines countries' unilateral incentives to achieve supply security through capacity reserves and market integration in a multinational electricity market. Capacity reserves protect consumers against blackouts and extreme prices, but distort consumption and investment. Market integration alleviates supply constraints, but requires costly network reinforcement. Capacity reserves can be up- or downward distorted, but network investment is always insufficient in equilibrium. Capacity reserves are smaller when there are financial markets or when dispatched solely to resolve domestic supply constraints.
    Keywords: Capacity mechanism, decentralized policy making, multinational
    JEL: D24 H23 L94 Q48
    Date: 2017–04–10
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1716&r=reg
  4. By: Kate Ho (Columbia University); Robin Lee (Harvard University Department of Economics)
    Abstract: Why do insurers choose to exclude medical providers, and when would this be socially desirable? We examine network design from the perspective of a profit-maximizing insurer and a social planner to evaluate the welfare effects of narrow networks and restrictions on their use. An insurer may engage in exclusion to steer patients to less expensive providers, cream-skim enrollees, and negotiate lower reimbursement rates. Private incentives for exclusion may diverge from social incentives: in addition to the standard quality distortion arising from market power, there is a “pecuniary” distortion introduced when insurers commit to restricted networks in order to negotiate lower rates. We introduce a new bargaining solution concept for bilateral oligopoly, Nash-in-Nash with Threat of Replacement, that captures such bargaining incentives and rationalizes observed levels of exclusion. Pairing our framework with hospital and insurance demand estimates from Ho and Lee (2017), we compare social, consumer, and insurer-optimal hospital networks for the largest non-integrated HMO carrier in California across several geographic markets. We find that both an insurer and consumers prefer narrower networks than the social planner in most markets. The insurer benefits from lower negotiated reimbursement rates (up to 30% in some markets), and consumers benefit when savings are passed along in the form of lower premiums. A social planner may prefer a broader network if it encourages the utilization of more efficient insurers or providers. We predict that, on average, network regulation prohibiting exclusion has no significant effect on social surplus but increases hospital prices and premiums and lowers consumer surplus. However, there are distributional effects, and regulation may prevent harm to consumers living close to excluded hospitals.
    Keywords: health insurance, narrow networks, selective contracting, hospital prices, bargaining, bilateral oligopoly
    JEL: C78 I11 L13
    Date: 2017–09
    URL: http://d.repec.org/n?u=RePEc:hka:wpaper:2017-067&r=reg
  5. By: Hancevic, Pedro; Nuñez, Héctor; Rosellón, Juan
    Abstract: Mexico plans to implement a national program to support the adoption of distributed photovoltaic generation (DPVG) among qualified households. The main objectives of such a program would be to reduce the burden of the substantial federal energy subsidy and increase the share of renewable energy sources used to generate electricity. In this paper we assess the current conditions under which the Mexican residential electricity sector operates, and quantify the potential effects that the massive adoption of DPV systems would have on household expenditure and welfare, subsidy reduction, pollution and water resource usage. Based on the positive results in terms of both economic and environmental effects, our paper provides a significant support for further design and implementation of a DPVG program.
    Keywords: Energía, Investigación socioeconómica,
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:dbl:dblwop:1027&r=reg
  6. By: Greve, T.; Teng, F.; Pollitt, M.; Strbac, G.
    Abstract: How can the electricity system operator determine the optimal quantity and quality of electricity ancillary services (such as frequency response) to procure in a market increasingly characterized by intermittent renewable electricity generation? The paper presents a system operator's utility function to calculate the exchange rates in monetary values between different frequency response products in the electricity system. We then use the utility function in a two-sided Vickrey-Clarke-Groves (VCG) mechanism combined of two frequency response products 'enhanced and primary' in the context of the system in Great Britain. This mechanism would allow the market to reveal to the system operator the welfare optimal mix of speed of frequency response and quantity to procure. We show that this mechanism is the efficient way to support new faster sources of frequency response, such as could be provided by grid scale batteries.
    Keywords: Utility function, ancillary services, system operator, energy storage, VCG mechanism
    JEL: D44 L94
    Date: 2017–07–10
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1728&r=reg
  7. By: Nepal, R.; Jamasb, T.; Sen, A.; Cram, L.
    Abstract: The dominant focus of much policy attention of late has been on the suitability of electricity market reform carried out under the 'standard' or prescriptive approach - the end point of which is market liberalization - for the integration of intermittent renewables. There is now a growing consensus around the argument that traditional energy-only electricity markets where prices are based on system marginal cost cannot function efficiently with both fossil fuels and renewables, potentially resulting in market disruptions and price volatility. Consequently, most policy discussion has focused on finding ways to successfully integrate the two through adopting advanced competitive solutions (such as the use of capacity markets in addition to energy-only markets) in larger electricity systems. This paper however argues that the effectiveness of competition is limited by the size of an electricity system - in other words, there is a minimum threshold size (and other associated characteristics such as tropical locations, lack of access, and the prevalence of remote communities of consumers) under which competition will not produce expected outcomes, and for which distinctive policy solutions are required. This paper contributes to the policy discourse by discussing the reform of small electricity systems to integrate renewable energy via the means of three case studies: Nicaragua, El Salvador, and their application to Australia's Northern Territory. The paper draws some policy lessons that can be considered for other small electricity systems in island economies and territories across Africa, the Caribbean, and the Asia-Pacific, that are pursuing a triad of objectives including electricity sector reform, large-scale renewables development and improving energy access.
    Keywords: electricity, reforms, renewables, island economies, territories
    JEL: D04 L94 Q48 L51
    Date: 2017–05–17
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1720&r=reg
  8. By: Folgerø, Ingrid Kristine (Dept. of Economics, Norwegian School of Economics and Business Administration); Harding, Torfinn (Dept. of Economics, Norwegian School of Economics and Business Administration); Westby, Benjamin (Dept. of Economics, Norwegian School of Economics and Business Administration)
    Abstract: This paper studies the impact of speed limits on local air pollution, using a series of datespecific speed limit reductions in Oslo over the 2004-2015 period. We find that lowering the speed limit from 80 to 60 km/h reduces travel speed by 5.8 km/h, but we find no effect on local air pollution. A conservative cost–benefit calculation suggests a net social loss from the speed limit reductions of 0.52 billion USD each year. Our findings imply that policy makers need to consider other actions than speed limit reductions to improve local air quality.
    Keywords: Temporary speed limit; air pollution; travel time; cost-benefit; regression discontinuity design
    JEL: H23 Q53 Q58 R41
    Date: 2017–09–07
    URL: http://d.repec.org/n?u=RePEc:hhs:nhheco:2017_012&r=reg
  9. By: Vincent Bertrand (Université de Bourgogne Franche-Comté, CRESE); Sylvain Caurla (LEF, AgroParisTech, INRA, 54000, Nancy, France); Elodie Le Cadre (Climate Economics Chair, Univ. Paris Dauphine, Paris, France); Philippe Delacote (LEF, AgroParisTech, INRA, 54000, Nancy, France)
    Abstract: We compute the optimal subsidy level to fuelwood consumption that makes it possible to achieve the French biomass energy consumption target. In this view, we model the competitions and trade-offs between the consumption of fuelwood for heat (FW-H) and the consumption of fuelwood for power generation (FW-E). To do so, we couple a forest sector model with an electricity simulation model and we test different scenarios combining FW-H and FW-E that account for contrasted potential rise in carbon price and potential reduction in the number of nuclear plants. We assess the implications of these scenarios on (1) the budgetary costs for the Government, (2) the industrial wood producers’ profits, (3) the costs savings in power sector for the different scenarios tested and (4) the carbon balance. We show that the scenario with the highest carbon price and the lowest number of nuclear plants is the less expensive from a budgetary perspective. Indeed, when associated with a high carbon price, co-firing may increase FW-E demand with lower subsidy level, which enables reducing the cost of reaching the target. However, in this case, FW-E crowds-out part of FW-H which may cause political economy issues. From a carbon balance perspective, a FW-H only scenario better performs than any other scenario that combines FW-H and FW-E due to the relatively low emissions factors of alternative technologies for electricity generation, in particular nuclear energy.
    Keywords: Forestry sector, Bioenergy, Biomass-based electricity, Carbon pricing, Nuclear power
    JEL: Q41 Q48 Q23
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:crb:wpaper:2017-12&r=reg
  10. By: Sidhu, A.; Pollitt, M.; Anaya, K.
    Abstract: This study explores and quantifies the social costs and benefits of grid-scale electrical energy storage (EES) projects in Great Britain. The case study for this report is the Smarter Network Storage project, a 6 MW/10MWh lithium battery placed at the Leighton Buzzard Primary substation to meet growing local peak demand requirements. This study analyses both the locational and system-wide benefits to grid-scale EES, determines the realistic combination of those social benefits, and juxtaposes them against the social costs across the lifecycle of the battery to determine the techno-economic performance. Risk and uncertainty from the benefit streams, cost elements, battery lifespan, and discount rate are incorporated into a Monte Carlo simulation. Using this framework, society can be guided to cost-effectively invest in EES as a grid modernization asset to facilitate the transition to a reliable, affordable, and clean power system.
    Keywords: electrical energy storage, battery, social cost benefit analysis
    JEL: L94 L98 Q48 D61
    Date: 2017–05–23
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1722&r=reg
  11. By: Collins, Matthew; Curtis, John
    Abstract: This paper examines the diffusion of energy efficiency retrofits across the national housing stock and specifically examines whether the level of applications for subsidy support is impacted by advertising, either online or through print and radio media, and whether there are spillover effects from prior investments in retrofits on new retrofit subsidy applications. While there are numerous drivers of household retrofitting activities, the focus here is specifically on advertising and spillover effects. The analysis employs a Bass growth model using a subsidy scheme administrative dataset from Ireland. The research finds that some but not all advertising related to a retrofit subsidy scheme increases the level of scheme applications and also that there are spillover effects from a niche retrofit scheme targeting communities (covering both private and community buildings) on private applications for energy efficiency subsidy support.
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:esr:wpaper:wp569&r=reg
  12. By: Philippe Aghion (CDF - Collège de France - CdF - Collège de France, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics, CIAR - Canadian Institute for Advanced Research - Université de Montréal, Department of Economics, Harvard University); Antoine Dechezleprêtre (Centre for Economic Performance - LSE - London School of Economics and Political Science, Grantham Research Institute on Climate Change and the Environment - LSE - London School of Economics and Political Science); David Hémous (Insead - INSEAD - INSEAD); Ralf Martin (Imperial College London, Grantham Research Institute on Climate Change and the Environment - LSE - London School of Economics and Political Science, Centre for Economic Performance - LSE - London School of Economics and Political Science); John Van Reenen (National Bureau of Economic Research - National Bureau of Economic Research, Centre for Economic Performance - LSE - London School of Economics and Political Science)
    Abstract: Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between “dirty” (internal combustion engine) and “clean” (e.g., electric, hybrid, and hydrogen) patents across 80 countries over several decades. We show that firms tend to innovate more in clean (and less in dirty) technologies when they face higher tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation (clean/dirty) both from aggregate spillovers and from the firm’s own innovation history. We simulate the increases in carbon taxes needed to allow clean technologies to overtake dirty technologies.
    Keywords: Carbon Taxes
    Date: 2016–01
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-01496920&r=reg
  13. By: Stennek, Johan (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: Competition between private and public firms can increase service quality and reduce public costs in markets for tax-financed welfare services with non-contractible quality. Synergies arise from combining high-powered incentives for quality provision (emanating from private firms) with low rents (public firms). However, sometimes, the optimal regulation requires the government to provide public firms with better funding than private competitors, e.g. by paying them higher prices or covering their deficits. This additional compensation is not tied to any additional verifiable quality obligations and may therefore violate competitive neutrality rules incorporated to various areas of legislation.
    Keywords: public-private competition; competitive neutrality; mixed markets; public option; ownership; competition; incomplete contracts; strategic ambiguity; merit goods; SGEI
    JEL: H44 L33 L44
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:hhs:gunwpe:0704&r=reg
  14. By: Newbery, D.
    Abstract: The paper sets out the economic theory for addressing externalities such as air pollution from burning fossil fuels and from road transport, and for public bads such as greenhouse gases, taking as examples the Clean Air Act, 1956, progress in reducing emissions from power stations, and recent concerns over the number of premature deaths from the rapid growth in diesel cars. That damage can be costed at 15p/litre of diesel on average. The last part discusses the efficacy of taxes, quotas or standards and the EU ETS for mitigating climate damage.
    Keywords: Air pollution, particulates, fossil generation, transport, emissions trading
    JEL: H2 H23 H41 I18 Q51 Q54 Q58
    Date: 2017–05–03
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1719&r=reg
  15. By: Caroline Orset (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech); Nicolas Barret (AgroParisTech); Aurélien Lemaire (AgroParisTech)
    Abstract: Although plastic induces environmental damages, almost all water bottles are made from plastic and the consumption never stops increasing. This study evaluates the consumers' willingness to pay (WTP) for different plastics used for water packaging. Successive messages emphasizing the characteristics of plastic are delivered to participants allowing explaining the influence of information on the consumers' WTP. We find that information has a manifest effect on WTP. We show there is a significant premium associated with recycled plastic packaging and organic and biodegradable plastic packaging. As there is no consensus on the plastic which is the most or the least dangerous for the environment, we propose different policies for protecting the environment. We discuss about the impact of these policies on consumer's purchasing decisions: switching one plastic packaging for another, or leaving water plastic bottles' market. We see that from the standpoint of consumer surplus, regulation is effective with certain environmental policies. Choosing between them then depend on the priorities of the regulator and pressure of lobbies.
    Keywords: Regulatory instruments,Bioplastic bottles,Consumer's willingness to pay,Biodegradable plastic bottles,Information campaign,Recycling plastic bottles
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01500900&r=reg
  16. By: Luke Haywood (DIW - Deutsches Institut für Wirtschaftsforschung - German Institute for Economic Research); Martin Koning (IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux); Guillaume Monchambert (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique, ENS Cachan - École normale supérieure - Cachan)
    Abstract: Crowding on public transport (PT) is a major issue for commuters around the world. Nevertheless, economists have rarely investigated the causes of crowding discomfort. Furthermore, most evidence on the costs of PT crowding is based on trade-offs between crowding, travel time and money. First, this paper assesses discomfort with PT crowding at various density levels across heterogeneous individuals using a different methodology. Based on a survey of 1000 Paris PT users, the negative relationship of in-vehicle density on reported satisfaction is similar to previous studies investigating PT crowding costs and stable across most individual characteristics. We also find a sensitive increase in crowding costs over users’ income. Second, we investigate the causes of this discomfort effect. We identify three key drivers: (a) dissatisfaction with standing and not being seated; (b) less opportunities to make use of the time during the journey; (c) the physical closeness of other travelers per se.
    Keywords: Survey data, Travel cost, Stated satisfaction,Public transport, Crowding
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01517820&r=reg
  17. By: Schmitz, Patrick W.
    Abstract: Consider a partnership consisting of two symmetrically informed parties who may each own a share of an asset. It is ex post efficient that tomorrow the party with the larger valuation gets the asset. Yet, today the parties can make investments to enhance the asset's productivity. Contracts are incomplete, so today only the ownership structure can be specified, which may be renegotiated tomorrow. It turns out that shared ownership is often optimal. If the investments are embodied in the physical asset, it may be optimal that party B has a larger ownership share even when party A has a larger valuation and a better investment technology. When shared ownership is taken into account, joint ownership in the sense of bilateral veto power cannot be optimal, regardless of whether the investments are in human capital or in physical capital.
    Keywords: Incomplete Contracts; Investment incentives; partnership dissolution; Property rights; shared ownership
    JEL: C78 D23 D86 L24 O32
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:12258&r=reg
  18. By: Teirila, J.
    Abstract: An electricity market coupled with a capacity market is modelled as a two-stage game that allows for strategic behaviour both in the electricity market and in the capacity market. The model is applied to the Irish electricity market, where a capacity market based on reliability options is established by the end of 2017. As Ireland has one dominant firm in the electricity market, there have been concerns that the new market design provides it an opportunity to abuse market power in these two markets. Using Ireland as an example this article examines the kinds of strategic behaviours that can be expected if a capacity market is implemented in an imperfectly competitive market. It is found that the potential for the abuse of market power in the capacity market is significant for the dominant firm in Ireland and that there is no simple way to mitigate it. The relative amount of procured capacity, the amount and characteristics of potential entrants, and the competitiveness of the electricity market are the main determinants of the possibilities and incentives for abusing market power in the capacity market.
    Keywords: capacity market, strategic behaviour, competitive benchmark analysis, procurement auction
    JEL: D43 D44 H57 L13 L94
    Date: 2017–06–30
    URL: http://d.repec.org/n?u=RePEc:cam:camdae:1727&r=reg
  19. By: Florian Fizaine (Univ. Bourgogne Franche ComtŽ, Laboratoire d'ƒconomie de Dijon); Pierre VoyŽ (Univ. Bourgogne Franche ComtŽ, Laboratoire d'ƒconomie de Dijon); Catherine Baumont (Univ. Bourgogne Franche ComtŽ, Laboratoire d'ƒconomie de Dijon)
    Abstract: Increasing attention is being paid to the building sector due to its importance in the climate change debate. In recent years, a growing literature on the price premium paid by consumers to access more efficient and sustainable buildings has emerged as a common topic in hedonic model estimations. In this paper, we aim to provide a summary of this literature by conducting a meta-analysis of more than 50 studies from around the world. In this way, based on a random effects models and weighted OLS robust clustering estimations, we offer an average estimation of the price premium accepted by economic agents (in terms of sale prices) in order to enjoy energy efficient and sustainable buildings. This supports the argument that investing in building refurbishment is worthwhile and economically relevant. However, our data seem to show a major publication bias. Correcting for this bias leads us to halve the original estimation (from 8% to 4%). In addition, we analyze the sources of result dispersion by performing a meta-regression using different moderators (type of publication, sample analysis period, econometric method, etc.). We also carry out different statistical tests and use alternative selection criteria in order to check whether our estimations are robust. Finally, we make recommendations for future hedonic studies as well as for upcoming meta-analyses of the green building premium..
    Keywords: labels, certification, energy efficiency, hedonic model, meta-analysis
    JEL: R5 Q48 Q5 H54 C19
    Date: 2017–06
    URL: http://d.repec.org/n?u=RePEc:fae:ppaper:2017.03&r=reg
  20. By: Christiane J.S. Baumeister; Reinhard Ellwanger; Lutz Kilian
    Abstract: It is commonly believed that the response of the price of corn ethanol (and hence of the price of corn) to shifts in biofuel policies operates in part through market expectations and shifts in storage demand, yet to date it has proved difficult to measure these expectations and to empirically evaluate this view. We quantify the extent to which price changes were anticipated by the market, the extent to which they were unanticipated, and how the risk premium in these markets has evolved. We show that the Renewable Fuel Standard (RFS) increased ethanol price expectations by as much $1.50 initially, raising ethanol storage demand starting and causing an increase in the price of ethanol. There is no conclusive evidence that the tightening of the RFS in 2008 shifted market expectations, but our analysis suggests that policy uncertainty about how to deal with the blend wall raised the risk premium in the ethanol futures market in mid-2013 by as much as 50 cents at longer horizons. Finally, we present evidence against a tight link from ethanol price expectations to corn price expectations and hence to the storage demand for corn in 2005-06.
    JEL: Q18 Q28 Q42 Q58
    Date: 2017–08
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:23752&r=reg
  21. By: Florence Depoers (CEROS - Centre d'Etudes et de Recherches sur les Organisations et la Stratégie - UPN - Université Paris Nanterre); Tiphaine Jérôme (University of Applied Sciences Northwestern Switzerland)
    Abstract: Environmental expenditures (EE) are used to assess and monitor corporate environmental performance. Legislators are aware of the informative potential of this indicator, and listed firms are required to disclose their EE. Our research draws on legitimacy theory to identify and explain the strategic responses of a sample of French listed companies to the requirement to disclose this item. A content analysis identifies three different strategies: no response, a “facade” response, and a substantive response. Tests reveal several determinants of these strategies: environmental criticism, the existence of SRI shareholders, and the business sector. Our research contributes to both academic and regulatory debates on standardization of environmental disclosures, by revealing and explaining how firms behave in response to the law.
    Keywords: ENVIRONMENTAL EXPENDITURES, LEGITIMACY, STRATEGY – CORPORATE DISCLOSURE – LAW - MEDIA COVERAGE – SRI SHAREHOLDERS – CORPORATE SOCIAL RESPONSIBILITY- ENVIRONMENTAL INFORMATION,DÉPENSES ENVIRONNEMENTALES, LÉGITIMITÉ, STRATÉGIE, PUBLICATION, LOI, VISIBILITE MEDIATIQUE, INESTISSEMENT SOCIALEMENT RESPONSABLE, RESPONSABILITE SOCIALE DE L’ENTREPRISE, INFORMATION ENVIRONNEMENTALE
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01576195&r=reg
  22. By: Boysen, Nils; Briskorn, Dirk; Emde, Simon
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:dar:wpaper:88891&r=reg
  23. By: Miller, Justin; Viscidi, Lisa
    Abstract: Clean energy research and commercialization have taken off over the last decade. The annual number of clean technology patent documents more than tripled between 2000 and 2014,while venture capital (VC) investment in the clean tech sector overall doubled in 2010-2014 compared to the previous five years, with most clean tech research and investment focused on energy. But more needs to be done. Governments must triple annual spending on energy research and development (R&D) to more than $50 million to meet climate change mitigation goals, according to the International Energy Agency. This report examines clean energy technology development in Brazil, Mexico and Chile, which are among the Latin American countries with the greatest potential to expand clean energy research and commercialization. All three countries are part of “Mission Innovation,” a global initiative to accelerate public and private clean energy innovation, which was launched during the 2015 United Nations climate talks in Paris. Member countries have committed to double clean energy research and development spending over the five years to 2020.
    Keywords: Ambiente, Cambio climático, Energía, Innovación,
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:dbl:dblstp:839&r=reg
  24. By: Jean-Sébastien Broc (B R & C - Broc Research & Consulting - IEECP - Institute for European Energy and Climate Policy); Catherine Cooremans (UNIGE - Université de Genève)
    Abstract: This short communication introduces the special issue based on a selection of papers first presented at the International Energy Policy and Programme Evaluation Conference in Berlin on 9 to 11 September 2014.
    Keywords: Energy efficiency policies,Evaluation
    Date: 2016–08–01
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01577517&r=reg
  25. By: Olav Øye (Triarii BV); Laura Aelenei (LNEG - Laboratório Nacional de Energia e Geologia); Line Barkved (NIVA - Norwegian Institute for Water Research - Norwegian Institute for Water Research); Stan Beaubien (Dipartimento di Scienze della Terra - Università degli Studi di Roma "La Sapienza" [Rome]); Teresa Bertrand (EnergyIn); Miriame Cherbib (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Sirin Engen (Bellona); Emily Creamer (School of Geosciences [Edinburgh] - University of Edinburgh); Anna Ernst (Bellona); Marie Gastine (BRGM - Bureau de Recherches Géologiques et Minières); Vasiliki Gemeni (CERTH - Centre for Research & Technology Hellas); Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Ales Havlin (Czech Geological Survey - Czech Geological Survey); Vit Hladik (Czech Geological Survey - Czech Geological Survey); Lucia Hrivnakova (Czech Geological Survey - Czech Geological Survey); Nikolaos Koukouzas (CERTH - Centre for Research & Technology Hellas); Carly Maynard (School of Geosciences [Edinburgh] - University of Edinburgh); Ron Overgoor (Triarii BV); Ana Picado (LNEG - Laboratório Nacional de Energia e Geologia); Stefano Pirrotta (ASI - Agenzia Spaziale Italiana); Melanie Provoost (Triarii BV); Sandra Ramos (CIUDEN - Fundación Ciudad de la Energía); Stijn Santen (Triarii BV); Konstantinos Sfetsioris (CERTH - Centre for Research & Technology Hellas); Simon Shackley (School of Geosciences [Edinburgh] - University of Edinburgh); Camilla Svendsen Skriung (ZERO - Zero Emission Resource Organisation); Robert van Der Lande (Triarii BV); Gert-Jan van Der Panne (Triarii BV); Vong Chan Quang (BRGM - Bureau de Recherches Géologiques et Minières); Samuela Vercelli (DICEA - Università degli Studi di Roma "La Sapienza" [Rome])
    Abstract: The European vision outlined, which is only one of many visions possible, is a result of a three year learning process. The R&Dialogue consortium discussed the experiences made and lessons learned during the ten country dialogues. Based on these findings an overall vision for Europe has been constructed. The vision tries to highlight the insights of this mutual learning process, but clearly it does not necessarily reflect the opinions and interests of all the external stakeholders involved. The chapter ‘Vision for Europe in 2050’ lays out the characteristics of a possible low- carbon Europe in the future. The chapter ‘Ways of getting to the low-carbon society’ gives recommendations for how to achieve this transition.
    Keywords: Europe, scenario, energy transition
    Date: 2015–12
    URL: http://d.repec.org/n?u=RePEc:hal:ciredw:hal-01564602&r=reg

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