|
on Regulation |
| By: | Obermüller, Frank (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | In recent years, the installed capacities of renewable energies have steadily been increasing. This raises the question for optimal locations of renewables. Ideally, the market prices induce efficient locations. Distorting effects, i.e. non incorporation of the physical grid situations, could lead to sub-optimal regional incentives compared to a system optimal perspective. In this paper, the wind production revenues under nodal and zonal pricing are investigated. The analysis is extended to the widely used wind value factor. The analysis identifies the zonal pricing wind revenues as inefficient location signals. Location signals need to consider the grid situations. Wind revenues could face an average increase of 21% and more than 200% for certain locations. This is highly relevant to design efficient subsidy schemes or to identify regional grid and capacity extension necessities. |
| Keywords: | Optimal Wind Locations; Wind Production; Market Revenues; Market Value; Electricity System Model; Nodal Pricing; Zonal Pricing |
| JEL: | Q42 Q48 |
| Date: | 2017–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2017_009&r=reg |
| By: | Nils May; Karsten Neuhoff |
| Abstract: | Power systems with increasing shares of wind and solar power generation have higher capital and lower operational costs than traditional technologies. This increases the importance of the cost of finance for total system cost. We quantify how renewable policy design can influence cost of finance by addressing regulatory risk and facilitating hedging. We use interview data on wind power financing costs from the EU and model how long-term contracts signed between project developers and energy suppliers impact financing costs in the context of green certificate schemes. Be- tween the policy regimes, the cost of renewable energy deployment differ by 30%. |
| Keywords: | Investments, long-term contracts, financing costs, liberalization of power markets, renewable energy policies |
| JEL: | Q42 Q55 O38 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1684&r=reg |
| By: | Hidalgo-Gallego, Soraya; Núñez-Sánchez, Ramón; Coto-Millán, Pablo |
| Abstract: | This study analyses the possible existence of spatial non-price competition in the port industry. We propose a dynamic two-stage model that allows: (1) to estimate the sensitivity of generation and diversion of traffic caused by port capacity expansions; (2) to quantify the degree of capacity competition; (3) to simulate a hypothetical scenario of cooperation agreements among different port authorities. The econometric specification is based on a structural model of demand, cost and market equilibrium. The empirical results suggest that non-price competition exists in port infrastructure services. Furthermore, using a simulation analysis, we show that incentives to invest in port capacity decrease under a cooperative setting. |
| Keywords: | Strategic interdepence; imperfect competition; port capacity; port alliances |
| JEL: | D24 D4 L1 L9 |
| Date: | 2017–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80417&r=reg |
| By: | Englmaier, Florian; Roider, Andreas; Stowasser, Till; Hinreiner, Lisa |
| Abstract: | We provide evidence that German public energy providers, over which municipality-level politicians hold substantial sway, systematically adjust the pricing of electric energy in response to local electoral cycles. The documented pattern is in line with both, an artificial reduction in prices before an election that needs to be countermanded by future price increases, and an artificial postponement of market-driven price increases until after the election is over. |
| JEL: | D72 D73 H44 H72 H76 K23 L33 L94 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc17:168267&r=reg |
| By: | Karoline S. Rogge (SPRU – Science Policy Research Unit, University of Sussex, Brighton, UK; Fraunhofer Institute Systems and Innovation Research (ISI), Karlsruhe, Germany); Joachim Schleich (Fraunhofer Institute Systems and Innovation Research (ISI), Karlsruhe, Germany; Grenoble Ecole de Management, Grenoble, France; Virginia Polytechnic Institute & State University, Blacksburg, VA, USA) |
| Abstract: | Policy mixes may play a crucial role in redirecting and accelerating innovation towards low-carbon solutions, thus addressing a key societal challenge. Towards this end, the characteristics of such policy mixes have been argued to be of great relevance, yet with little empirical evidence backing up such claims. In this paper we explore this link between policy mix characteristics and low-carbon innovation, using the research case of the transition of the German electricity system towards renewable energy. Our empirical insights are based on an innovation survey among German manufacturers of renewable power generation technologies which builds on the Community Innovation Survey, but which we adjusted to better capture companies’ perceptions of the policy mix. Employing a bivariate Tobit model we find that companies’ perceptions regarding the consistency and credibility of the policy mix are positively associated with the level of their innovation expenditures for renewable energies, and this positive link intensifies when considering the mutual interdependence of these policy mix characteristics. In contrast, we find no support for such a direct link for the comprehensiveness of the instrument mix or the coherence of policy processes. These findings suggests that future research on low-carbon and eco-innovation more broadly should pay greater attention to the characteristics of policy mixes, rather than focusing on policy instruments only. It also implies a need to rethink the consideration of policy in innovation surveys to enable better informed policy advice regarding the greening of innovation. |
| Keywords: | policy mix, credibility, consistency, coherence, comprehensiveness, ecoinnovation, renewable energy, sustainability transition, decarbonization |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2017-19&r=reg |
| By: | Helene Naegele; Aleksandar Zaklan |
| Abstract: | Carbon leakage is an issue of major interest in both academic and policy debates about the effectiveness of unilateral climate policy addressing global externalities. The debate is particularly salient in Europe, where the EU Emissions TradingSystem (EU ETS) covers emissions of many traded sectors. In a first step, we review how carbon leakage and the pollution haven effect are defined and identified in the literature. In a second step, we evaluate whether the emission cost introduced by the EU ETS has caused carbon leakage in European manufacturing. We compute trade flows in embodied carbon and value, using GTAP trade and input-output data and administrative data from the EU ETS. We evaluate theeffect of four measures of environmental stringency on both net trade flows and bilateral trade flows. We do not find evidence that the EU ETS has caused carbon leakage. |
| Keywords: | Carbon leakage, pollution haven, EU ETS, cap-and-trade, CO2 emissions, policy evaluation |
| JEL: | F18 Q58 Q54 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1689&r=reg |
| By: | Radulescu, Doina; Feger, Fabian |
| Abstract: | We use data on 180,000 households in the Swiss Canton of Bern and the years 2008-2013 to analyse whether one instrument (the income tax) vs. two instruments (income tax and public utility pricing) are adequate for income redistribution. The results of our structural estimation show that under certai assumptions there is a role for redistribution through public good pricing markups and hence with two instruments being adequate for redistribution. |
| JEL: | D12 D31 H21 H22 H24 L51 L94 L98 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc17:168138&r=reg |
| By: | Frondel, Manuel; Gerster, Andreas; Vance, Colin |
| Abstract: | Many countries have introduced Energy Performance Certificates to mitigate the information asymmetry with respect to the thermal quality of houses. Drawing on a stylized theoretical model that is coupled with comprehensive data on real estate advertisements in the German housing market, this paper investigates the causal effect of disclosing energy information on the offer prices of houses. We are particularly interested in testing whether house sellers who would not voluntarily disclose the house's energy consumption decrease the offer price upon a shift to a mandatory disclosure scheme. Employing both within-variation from panel data and an instrumental-variable approach to cope with the endogeneity of disclosure decisions, our analysis demonstrates the power of mandatory disclosure rules to increase market transparency and to reduce prices. |
| Keywords: | information asymmetry,mandatory disclosure,environmental certification |
| JEL: | D82 L15 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:684&r=reg |
| By: | Growitsch, Christian; Paulus, Simon; Wetzel, Heike |
| Abstract: | In this article, we analyze the relative CO2 emission performance across 48 states in the U.S. using a two-stage empirical approach. In the first stage, we identify the states that followed best practice by applying benchmarking techniques. In the second stage, we regress our CO2 emission performance indicators on the state-specific national gas prices, the states’ CO2 regulatory policies and a number of other state-specific factors in order to identify the main drivers of the developments. |
| JEL: | C61 D24 L94 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc17:168284&r=reg |
| By: | Lee, Sang-Ho; Muminov, Timur |
| Abstract: | This study investigates the incentives for R&D output sharing in a mixed duopoly and shows that public firm chooses full sharing of their R&D output, whereas private firm enjoys free-riding. We then devise an agreement-based incentive R&D subsidy scheme, which can internalize R&D spillovers and induce both firms to earn higher payoffs through full sharing of their R&D output. We also show that an R&D subsidy policy is welfare-superior to a production subsidy policy. |
| Keywords: | Agreement-based R&D subsidy; Mixed duopoly; Production output subsidy; R&D output sharing |
| JEL: | H21 L13 L32 |
| Date: | 2017–10–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:81732&r=reg |
| By: | Richard Meade (Auckland University of Technology and Cognitus Economic Insight); Magnus Soderberg (Syddansk Universitet) |
| Abstract: | We model the endogenous ownership of a monopoly utility by either investors or the firm’s customers. Ownership arises endogenously based on customers’ quality preference, which affects each ownership type’s viability. Customer ownership arises when quality preference falls below the threshold for profitable entry by investors, but above that for entry by customer-owners. When quality preferences diverge sufficiently, a profitmaximising investor-owned utility produces higher welfare than a welfare-maximising customer-owned firm, despite its higher prices. Otherwise, a customer-owned utility produces greater efficiency, quality and welfare, despite having lower-value customers. These predictions agree with empirical findings for US utilities, and find direct support using data from Electricity Distribution Businesses in New Zealand. To reflect ownership endogeneity, we instrument for ownership changes using the staggered rollout of regional air quality regulations. Our findings suggest that performance comparisons of customer- and investor-owned utilities should account for ownership endogeneity. This has implications for ownership debates, efficiency study specification, and the development of regulatory screens. |
| Keywords: | Utilities, Price, Efficiency, Quality, Welfare, Ownership |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:aut:wpaper:201709&r=reg |
| By: | Paschmann, Martin (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Paulus, Simon (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | One important pillar in the debate about energy-saving measures addresses energy conservation. In this paper, we focus on the deployment of advanced metering infrastructure to reduce the impact of limited information and bounded rationality of consumers. For California, we empirically analyze the influence of a statewide and policy-driven installation of advanced metering infrastructure. We apply synthetic control methods to derive a suitable control group. We then conduct a Difference-in-Differences estimation and find a significant negative impact of smart meters on monthly residential electricity consumption that ranges from 6.1 to 6.4%. Second, such an impact only occurs in non-heating periods and does not fade out over the analyzed time period. |
| Keywords: | Behavioral Economics; Bounded Rationality; Energy Conservation; Informational Feedback; Smart Meters; Residential Electricity Consumption |
| JEL: | C91 D11 D12 D14 D83 |
| Date: | 2017–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2017_008&r=reg |
| By: | Briglauer, Wolfgang |
| Abstract: | We evaluate the impact of a major European state aid programme for broadband deployment applied to rural areas in the German state of Bavaria in the years 2010 and 2011. We find that aided municipalities have—depending on quality— between 16.8 and 23.2 percentage points higher broadband coverage than non-aided municipalities. This increase in broadband coverage closes the digital divide but does not contribute to a further closing of the economic divide in the form of creating new jobs. |
| JEL: | D62 D73 G38 H23 J23 K23 L52 L96 L98 R23 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc17:168055&r=reg |
| By: | Bosupeng, Mpho |
| Abstract: | The dynamic relationship between exports and energy has been an interesting area of research in macroeconomics. This paper contributes to the extant literature by examining the relationship between electricity consumption and exports revenue for forty different economies as from 1980-2012. The study commences by examining the time series for unit roots using the Augmented Dickey-Fuller (ADF) test. The results of the Johansen cointegration test reveal that twenty-one economies under investigation exhibited statistically long run affiliations between exports income and electricity consumption. Comparatively, the Saikkonen and Lu ̈tkepohl test proved that exports and electricity consumption are statistically cointegrated in the long run for all economies. The Granger causality test showed that exports income promote an increase in electricity consumption. However, exports in some economies were induced by electricity consumption. Most importantly, the validity of the feedback hypothesis is affirmed as bidirectional causal relationships between exports and electricity consumption surface in multiple economies. |
| Keywords: | exports; energy demand; electricity consumption; economic growth; feedback hypothesis. |
| JEL: | Q43 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:81756&r=reg |