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on Regulation |
| By: | Suyunchev, Marat (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Repetyuk, Sergei (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Temnaya, Olga (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | The article presents the results of scientific research «The development of incentive regulation Methodology, based on benchmarking of Distribution Electricity Networks maintenance unit costs», which analyzes international and Russian practice of distribution electricity networks incentive regulation. Factors effecting to the value of Russian distribution electricity networks maintenance manageable costs are identified, and the factors-costs model is developed. The methods of distribution electricity networks yardstick maintenance manageable calculations are considered. The possible effect of the yardstick costs incentive regulation on distribution electricity networks performance is evaluated. |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:051805&r=reg |
| By: | Carlos, Gutiérrez-Hita (Departamento de Estudios Económicos y Financieros); Vicente-Pérez, José (Departamento Fundamentos Análisis Económico) |
| Abstract: | In this paper we present a mixed duopoly model of supply function competition under uncertainty with product differentiation. We find that, regardless the nature of product heterogeneity, the best response of the private firm always arises as strategic complement. Contrary to this, state-owned firm's best response arises either as strategic complement or substitute depending on the product heterogeneity. As a result of the ex post realization of the demand uncertainty, different equilibria are reached. |
| Keywords: | Supply Function Equilibria; Mixed oligopoly; Differentiated products |
| JEL: | D43 H42 L13 |
| Date: | 2018–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:ris:qmetal:2018_001&r=reg |
| By: | Marc Bourreau; Lukasz Grzybowski; Maude Hasbi |
| Abstract: | We use panel data on 36,104 municipalities in metropolitan France over the period 2010-2014 to estimate two models of entry into local markets by: (i) alternative operators using wholesale access to the legacy copper network via local loop unbundling (LLU), and (ii) the incumbent and two alternative operators using the fiber technology. We find that a higher number of LLU competitors, and hence a less concentrated local market, has a positive impact on entry by fiber operators. Moreover, the presence of upgraded cable network in the local municipality stimulates fiber deployment. However, firms may choose to upgrade copper lines instead of investing in fiber networks. We use the estimates to calculate entry thresholds into local markets, which are substantially lower for broadband provision via LLU than via fiber and decrease over time. Fiber deployment becomes cheaper over time, but according to our estimates it will remain unprofitable for the vast majority of municipalities in France within the next years. |
| Keywords: | fiber broadband, local loop unbundling, market entry |
| JEL: | K23 L13 L51 L96 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7006&r=reg |
| By: | Comello, Stephen (Stanford University); Reichelstein, Stefan J. (Stanford University); Sahoo, Anshuman (Stanford University) |
| Abstract: | Over the past decade, solar photovoltaic (PV) power has experienced dramatic deployment growth coupled with substantial decreases in system prices. This article examines how solar PV power is currently positioned in the electricity marketplace and how that position is likely to evolve in the foreseeable future. We first assess the current cost competitiveness of solar PV in select U.S. locations and industry segments using the levelized cost of electricity (LCOE) metric. This framework enables us to quantify the effects that supportive public policies, time-of-use pricing, and anticipated future technological improvements have on the cost of solar PV. We also build on recent analytical work that has identified circumstances under which it becomes financially attractive to add behind-the-meter batteries to an existing PV solar system. Taken together, our findings suggest that solar power, by itself and in conjunction with low cost storage, is positioned to account for a significant and growing share of the overall energy mix. |
| JEL: | Q20 Q42 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:3620&r=reg |
| By: | Odolinski, Kristofer (CTS - Centre for Transport Studies Stockholm (KTH and VTI)); Boysen, Hans E. (CTS - Centre for Transport Studies Stockholm (KTH and VTI)) |
| Abstract: | In this paper, we analyse how railway maintenance costs are affected by different levels of railway line capacity utilisation. Previous studies have focused on the wear and tear of the infrastructure, while this paper shows that it is important to also acknowledge the heterogeneity of the maintenance production environment. Specifically, we estimate marginal costs for traffic using econometric methods on a panel dataset from Sweden and show that these costs increase with line capacity utilisation. The results are significant considering that current EU regulation (2015/909) states that track access charges can be based on marginal costs, with the aim of creating an effective use of available infrastructure capacity. |
| Keywords: | maintenance; marginal cost; rail infrastructure; capacity; track access charges |
| JEL: | L92 R48 |
| Date: | 2018–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2018_010&r=reg |
| By: | Zachary Spicer (University of Toronto) |
| Abstract: | Platform economy firms such as Uber and Airbnb have attracted attention in cities around the world, given the impact of these firms on the existing taxi industry or the rental market, but little has been written about the effects of the platform economy on municipal fiscal health. This paper estimates the regulatory cost and potential revenue opportunities of the platform economy, examining the impact of three firms in Toronto: Uber, Airbnb, and Rover. Overall, I expect that the approaches that the City of Toronto has taken to regulate the activities of firms, such as Uber and Airbnb, will be revenue-neutral. Since neither of these services directly competes with other city services, I examine only the costs of the regulatory scheme put in place. The third platform firm, Rover, does compete with the City’s Green P parking service. However, Rover’s operations are not at the scale necessary to meaningfully disrupt Green P services. If regulated effectively, the platform economy would have a minimal impact on municipal revenue. However, regulatory delay has a cost. The lesson learned from Toronto’s experience is to not delay the creation of a regulatory regime. Municipalities need to be proactive in researching the appropriate regulatory approach and matching the regulatory reach to the platform in question, namely a digital regulatory approach for a digital service. |
| Keywords: | platform economy, regulatory disruption, municipal revenue, Toronto |
| JEL: | H25 H71 O33 O38 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:mfg:wpaper:40&r=reg |
| By: | Wagner, Johannes (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Electricity systems are increasingly characterized by distributed generation technologies, e.g. rooftop photovoltaic systems, which are used by end consumers to directly produce electricity. Additionally, empirical evidence suggests that electricity retailers exercise market power in many unbundled electricity markets. Against this backdrop this articles analyzes the impact of distributed generation on imperfect retail markets for electricity in a spatial competition framework. I find that distributed generation puts competitive pressure on retailers and induces lower retail prices. Therefore even consumers, who do not use distributed generation, benefit. Based on this effect regulators can shift welfare to consumers by subsidizing distributed generation in order to position it as a competitor to grid based electricity. However, if only a limited share of demand can be supplied with distributed generation, there is a point at which retailers disregard the substitutable share of demand and focus on the non-substitutable consumption in order to realize higher mark-ups. As a result, increased subsidies for distributed generation can increase retail prices and harm consumers. With optimal subsidies this strategy of retailers is prevented by limiting usage of distributed generation. |
| Keywords: | Distributed Generation; Renewable Energy; Retail Unbundling; Spatial Competition |
| JEL: | D43 L13 L50 L94 Q48 |
| Date: | 2018–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2018_001&r=reg |
| By: | Lucas W. Davis; Sebastian Martinez; Bibiana Taboada |
| Abstract: | Despite growing enthusiasm, there is little empirical evidence on how well energy efficiency investments work. Evidence is particularly lacking from low- and middle-income countries, despite a widespread view that these countries have many of the best opportunities. This paper evaluates a field experiment in Mexico in which a quasi-experimental sample of new homes was provided with insulation and other energy-efficient upgrades. A novel feature of our study is that we deploy large numbers of data loggers which allow us to measure temperature and humidity at high frequency inside homes. We find that the upgrades had no detectable impact on electricity use or thermal comfort, with essentially identical temperature and humidity levels in upgraded and non-upgraded homes. These results stand in sharp contrast to the engineering estimates that predicted up to a 26% decrease in electricity use. Part of the explanation is that air conditioner ownership is lower than expected, thus reducing the potential for reductions in energy use. In addition, we document that most households have their windows open on hot days, nullifying the thermal benefits of roof and wall insulation. Overall, we conclude that the benefits from these investments are unlikely to exceed the costs, which added $400-$500 USD to the cost of each home. Our results underscore the urgent need to fully incorporate socioeconomic conditions and human behavior into engineering models of energy use. |
| JEL: | D12 H23 Q40 Q54 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24581&r=reg |
| By: | José Marino García-García (Complutense Institute for International Studies (UCM) and Ministry of Energy, Tourism and the Digital Agenda.); Aurelia Valiño Castro (Complutense University of Madrid.); Antonio Jesús Sánchez Fuentes (Complutense Institute for International Studies (UCM) and GEN(Governance and Economics research Network).) |
| Abstract: | The unsolved question in spectrum management is no longer if a reform is necessary to enable higher market participation but the optimal path and speed of reform. We offer an expression to determine when to choose a gradual or big bang reform depending on current and expected technology and an expression to determine whether to wait or not for new technology. Gradual is better if the technological advance coefficient is high, the reversibility of the reforms is costly, the duration of the second reform is long, the probability of an outcome lower than expected is considerable or the reforms are not too complementary. |
| Keywords: | Radio-electric spectrum; Efficiency; Externalities; Technological change. |
| JEL: | O33 D61 D62 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:wpaper:1802&r=reg |
| By: | Svatopluk Kapounek (Department of Finance, Faculty of Business and Economics, Mendel University in Brno); Zuzana Kucerova (Department of Finance, Faculty of Business and Economics, Mendel University in Brno) |
| Abstract: | We investigate economic cycle comovements across the European Union after twenty years from euro adoption. We demonstrate the cycle comovement between France and the EU and the decoupling of Germany, the United Kingdom and countries in Southern Europe. We find that the Baltic countries represent a single economic area with common shocks. Using wavelet coherence analysis with phase shift, we identify directions of causal relationships and discuss the spread of asymmetric shocks across the European Union. Our results do not fully support the idea that monetary integration increases the synchronisation of economic cycles of monetary union members. |
| Keywords: | OCA Theory, Economic Cycles, Time†series co†movements, Wavelet Analysis, Phase Shift |
| JEL: | E32 F15 C14 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:men:wpaper:75_2018&r=reg |