nep-reg New Economics Papers
on Regulation
Issue of 2018‒03‒19
twelve papers chosen by
Natalia Fabra
Universidad Carlos III de Madrid

  1. Flexible Use of Residential Heat Pumps - Possibilities and Limits of Market Participation By Jessica Raasch
  2. Compensating households from carbon tax regressivity and fuel poverty: a microsimulation study By Audrey Berry
  3. Does Host Market Regulation Induce Cross Border Environmental Innovation? By Antonello Zanfei; Giovanni Marin
  4. Value for money in energy efficiency retrofits in Ireland: grant provider and grant recipients By Collins, Matthew; Curtis, John
  5. Fluctuations in renewable electricity supply: Gains from international trade through infrastructure? By Ziesemer, Thomas
  6. More information, lower costs: a new electricity market mechanism By Devine, Mel; Lynch, Muireann Á
  7. Household tipping points in the face of rising electricity tariffs in South Africa By Angelika Goliger; Aalia Cassim
  8. Regulation of crowdfunding in Germany By Tröger, Tobias
  9. How to reduce energy poverty in Poland? By Jan Rutkowski; Katarzyna Salach; Aleksander Szpor; Konstancja Ziolkowska
  10. PATHWAYS TO DEEP DECARBONIZATION of the passenger transport sector in France By Yann Briand; Julien Lefevre; Jean-Michel Cayla
  11. Buses, Houses or Cash? Socio-Economic, Spatial and Environmental Consequences of Reforming Public Transport Subsidies in Buenos Aires By Paolo Avner; Shomik Raj Mehndiratta; Vincent Viguie; Stéphane Hallegatte
  12. Investing in the electric utilities sector: the implications of carbon risk By Enrico Bernardini; Johnny Di Giampaolo; Ivan Faiella; Riccardo Poli

  1. By: Jessica Raasch (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen (Campus Essen))
    Abstract: The increased amount of electricity supply from intermittent renewable energy sources leads more and more to high price volatility in electricity spot markets. An increasing share of generation is less dispatchable than in the past, and therefore higher amounts of flexible demand, which can be adjusted towards supply, are required. Even residential consumers are potential market participants, if the smart equipment of buildings and the electricity grid are readily available. This paper investigates the possibility for heat-pump operators to participate in spot markets. Especially problems and possible benefits are investigated when uncertainties in ambient temperatures or prices are considered. Therefore an optimization model, including an air-to-water heat pump, a storage tank and the heated building is implemented in MATLAB. In order to investigate the heat-pumps operation according to optimized heat-supply schedules. Along different scenarios, an agent-based model is used. Namely operations with day-ahead and intraday market participation are investigated, using historical EPEX spot electricity prices for 2014. Results show that uncertainty is a critical issue when private consumers participate in electricity markets. Even with a certain amount of system flexibility, there are tight operational constraints for the heating device, which are hard to fulfill. Short-term decisions including responses to current information are required. The system behavior is acceptable with very shortterm decision making, namely a hourly reoptimization with intraday-market participation. Further on, benefits can be yielded, when a combination of procurement before (day-ahead) and adjustments in the very short term (intraday) are applied.
    Keywords: Heat-Pump Operation, Flexible Consumption, Residential Market Participation, Spot-Market Bidding
    JEL: Q41 Q48
    Date: 2018–03
  2. By: Audrey Berry (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement)
    Abstract: For households, taxing carbon raises the cost of the energy they use to heat their home and to travel. This paper studies the distributional impacts of the recently introduced French carbon tax and the design of compensation measures. Using a microsimulation model built on a representative sample of the French population from 2012, I simulate for each household the taxes levied on its consumption of energy for housing and transport. Without recycling, the carbon tax is regressive and increases fuel poverty. However, I show how compensation measures can offset these impacts. A flat cash transfer offsets tax regressivity by redistributing
    Keywords: Carbon tax,Distributional impacts,Fuel poverty,Revenue recycling,Microsimulation
    Date: 2018–01–23
  3. By: Antonello Zanfei (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Giovanni Marin (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")
    Abstract: TThis paper evaluates the effect of host-country environmental policy stringency on the offshoring of environmental patents for 2000 top world R&D performers. It is shown that a more stringent environmental regulation triggers both the extensive and intensive margin of patent offshoring in the field of environmental technologies. Results are robust to various different specifications, alternative definitions of innovation offshoring and of regulation restrictions, and to the consideration of possible endogeneity of regulation. It is suggested inter alia that R&D subsidies and non-market based regulatory measures are more important than market-based instruments as drivers of cross-border environmental innovation
    Keywords: MNE, environmental policy, patent data
    JEL: F10 F23 O33 Q55
    Date: 2018
  4. By: Collins, Matthew; Curtis, John
    Date: 2017
  5. By: Ziesemer, Thomas (UNU-MERIT, and SBE, Maastricht University)
    Abstract: 113 countries report producing electricity from non-hydro renewable sources and thereby participate in the global energy transition. This paper shows through a dynamic panel data analysis that imports of electric currents have increased and exports have decreased through the higher share of renewables in electricity production, controlling for other factors. On the one hand more cables have been built recently; but on the other hand some countries are blocking electricity shocks technologically as they suffer from free trade temporarily when receiving supply shocks. This shows that trade currently helps dealing with fluctuations of supply, but temporary losses for recipients of shocks may require payments to leave the borders open.
    Keywords: Gains from trade, electric current, gravity, infrastructure, renewables, fluctuations, electricity supply, electricity shocks
    JEL: F14 F15 F18 F59 H54 O33
    Date: 2018–02–27
  6. By: Devine, Mel; Lynch, Muireann Á
    Date: 2017
  7. By: Angelika Goliger; Aalia Cassim
    Abstract: Since the start of sharp electricity tariff increases in 2008, South African household demand for electricity has not been significantly affected. However, the combination of economic realities and ongoing electricity tariff increases will eventually compel households to reduce their electricity usage. This research explores the ability of South African households to make alternative-energy and/or energy-efficient investments in two tariff increase scenarios. It is found that middle-income households are the most vulnerable to rising electricity tariffs, due to their limited ability to invest in technologies that would significantly reduce their electricity usage, yet they are unlikely to opt for the alternatives used by low-income households. Assuming that 20 per cent of households that can afford to invest in particular technologies do so, then around one quarter of total residential electricity sales in South Africa could potentially go off-grid in the base case tariff scenario by 2030.
    Date: 2018
  8. By: Tröger, Tobias
    Abstract: This paper is the national report for Germany prepared for the to the 20th General Congress of the International Academy of Comparative Law 2018 and gives an overview of the regulation of crowdfunding in Germany and the typical design of crowdfunding campaigns under this legal framework. After a brief survey of market data, it delineates the classification of crowdfunding transactions in German contract law and their treatment under the applicable conflict of laws regime. It then turns to the relevant rules in prudential banking regulation and capital market law. It highlights disclosure requirements that flow from both contractual obligations of the initiators of campaigns vis-à-vis contributors and securities regulation (prospectus regime). After sketching the most important duties of the parties involved in crowdfunding, the report also looks at the key features of the respective transactions' tax treatment.
    Keywords: crowdfunding,crowdsponsoring,crowdlending,crowdinvesting,contract law,conflict of laws,banking regulation,securities regulation
    JEL: G23 G28 G38 K22 K23
    Date: 2017
  9. By: Jan Rutkowski; Katarzyna Salach; Aleksander Szpor; Konstancja Ziolkowska
    Abstract: 4.6 million people in Poland live in energy poverty. In order to significantly reduce the scale of this problem, more effective and better addressed public policy instruments are needed. We propose three new instruments. First, targeted fuel allowance, aimed at alleviating the symptoms of energy poverty. Second, advisory services and energy saving improvements. Third, thermal retrofit coupled with professional energy counselling. The latter two instruments are meant to eliminate the causes of energy poverty. Thermal retrofit is the most expensive but the most effective tool. Developing a mechanism for practical identification of energy poor households is a major challenge. It is to be tackled by local governments, especially social assistance centres.
    Keywords: energy poverty, public policy
    JEL: I32 Q40
    Date: 2018–02
  10. By: Yann Briand (IDDRI - Institut du Développement Durable et des Relations Internationales - Institut d'Études Politiques [IEP] - Paris); Julien Lefevre (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement); Jean-Michel Cayla (EDF R&D - EDF R&D - EDF - EDF)
    Date: 2017
  11. By: Paolo Avner (The World Bank - The World Bank - The World Bank); Shomik Raj Mehndiratta (The World Bank - The World Bank - The World Bank); Vincent Viguie (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement); Stéphane Hallegatte (The World Bank - The World Bank - The World Bank)
    Date: 2018–01–29
  12. By: Enrico Bernardini (Bank of Italy); Johnny Di Giampaolo (Bank of Italy); Ivan Faiella (Bank of Italy); Riccardo Poli (Bank of Italy)
    Abstract: The decarbonization process has made the traditional value-creation model of companies operating in the electricity sector (energy utilities - UEN) obsolete, particularly affecting those with a greater share of fossil fuels in their energy mix that have been forced to write down their carbon-intensive activities with a negative impact on operating income, equity and leverage. Institutional investors have a significant exposure to UEN risk capital and debt: if the transition process towards a low-carbon system is faster than expected by the market, the risk that these weaknesses may spread across the financial system shouldn’t be underestimated. Analyses based on risk-premium factor models show that there was a significant low-carbon premium during the years in which the decarbonization process increased; in the period considered, an investment strategy that focused more on low-carbon companies would have delivered higher returns without modifying the overall risk profile.
    Keywords: carbon risk, climate change, factor models
    JEL: C58 G11 Q54
    Date: 2017–11

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