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on Regulation |
| By: | James Bushnell; Kevin Novan |
| Abstract: | Policies supporting investment in renewable electricity have been a cornerstone of climate policy in many parts of the world. While previous empirical work explores the economic and environmental impacts of renewable production, the focus has exclusively been on the short-run impacts of expanding renewable supply. In this paper, we shed light on the longer run impacts of renewable expansions. Focusing on the California electricity market, we estimate how wholesale electricity prices have responded to a dramatic increase in utility-scale solar capacity. While a substantial decline in daily average prices can be attributed to the solar capacity expansion, this average price impact masks a substantial decrease in mid-day prices combined with an increase in shoulder hour prices. These results imply that short-term power markets are responding to the renewable expansion in a fashion that could sustain more flexible conventional generation, while seriously undermining the economic viability of traditional baseload generation technologies. |
| JEL: | L5 L94 Q41 Q42 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24980&r=reg |
| By: | Zhong, Jia; Khanna, Madhu; Chen, Xiaoguang |
| Abstract: | The direct incentive from the renewable fuel standard for fuel consumers is limited while the penetration of flexible fuel vehicles (FFV) stays stagnated. To study alternative policy incentives and its mechanism targeted at consumer to supplement the standards from the demand side, we develop a framework of dynamic economic partial equilibrium model. We find that under RFS 2022 schedule, explicitly pronounced cross-subsidization on both fuels (yearly average $0.41/gge tax on preblended fuel and $2.35/gge subsidy on ethanol) and vehicles (average $2.8k tax on CV and $2.4k purchase subsidy on FFV) are needed for consumers to switch to higher ethanol blends and FFV. The retail E100 is priced lower than its energy content as with E10 to the extent to attract FFV users consume higher blends and stimulate FFV purchase while offset the drawbacks of the higher vehicle costs and its less fuel efficiency. A lengthened policy not only alleviates the pricing strategies pressure but also reduces the welfare loss. Improved competitiveness in sales price is more effective in benefiting the vehicle drivers with less feebate intensity. |
| Keywords: | Resource/Energy Economics and Policy, Demand and Price Analysis, Land Economics/Use |
| Date: | 2017–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258483&r=reg |
| By: | ITF |
| Abstract: | This report examines how the optimised use of new shared transport modes can change the future of mobility in the Auckland area in New Zealand. Based on computer simulations of different shared mobility scenarios, the study shows that introducing ride sharing and Taxi-Bus services can significantly reduce C02 emissions and improve accessibility while lowering mobility costs and improving service quality for users. Most scenarios also reduce congestion and release public parking space for other uses. The simulations show that new shared modes work particularly effectively in tandem with public transport supply such as rail and bus rapid transit (BRT), for which they can act as feeders. A survey and focus groups for the study explored how willing citizens in the Auckland area are to using shared mobility solutions. Together, the findings provide an evidence base for decision makers to weigh opportunities and challenges created by new forms of shared transport services. The work forms part of a series of studies on shared mobility in different urban and metropolitan contexts.This report is part of the International Transport Forum’s Case-Specific Policy Analysis series. These are topical studies on specific issues carried out by the ITF in agreement with local institutions. |
| Date: | 2017–11–27 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:41-en&r=reg |
| By: | Eva Lyubich; Joseph S. Shapiro; Reed Walker |
| Abstract: | This paper provides the first estimates of within-industry heterogeneity in energy and CO2 productivity for the entire U.S. manufacturing sector. We measure energy and CO2 productivity as output per dollar energy input or per ton CO2 emitted. Three findings emerge. First, within narrowly defined industries, heterogeneity in energy and CO2 productivity across plants is enormous. Second, heterogeneity in energy and CO2 productivity exceeds heterogeneity in most other productivity measures, like labor or total factor productivity. Third, heterogeneity in energy and CO2 productivity has important implications for environmental policies targeting industries rather than plants, including technology standards and carbon border adjustments. |
| JEL: | F18 H23 Q56 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:18-03r&r=reg |
| By: | Heims, Eva M.; Lodge, Martin |
| Abstract: | Little is known about how processes of ‘expert’ control interact with or move towards collaborative models of regulation. This paper focuses on a critical example of such an apparent shift: customer engagement in price-setting in water regulation in Scotland and England/Wales. By drawing on original interview and documentary analysis, the paper demonstrates a neglected rationale for and usage of ‘collaborative regulation’: regulators introduced customer engagement to incentivise regulated firms into further efficiencies. This points towards an increasing hybridisation of the contemporary regulatory state, in which collaborative regulatory processes are used to advance ‘econocratic’ objectives of expert regulators. |
| JEL: | R14 J01 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:87258&r=reg |
| By: | Simshauser, P |
| Abstract: | In Australia, as with Great Britain, governments have shown rising concern with the health of competitive residential electricity markets. A core concern is the practice of price discrimination and the rising dispersion of prices. The State of Queensland implemented Full Retail Contestability in 2007, but held a regulated price cap in place until 2016, when it finally deregulated its residential electricity market. Almost simultaneously, the two jurisdictions that pioneered retail price deregulation, Great Britain and Victoria, were questioning their prior policy decision. Queensland makes for a fascinating case study because Southeast Queensland comprises a fully deregulated retail market while Regional Queensland is a regulated monopoly – with common input costs across both zones. Consequently, a regulated monopoly with a uniform tariff and 640,000 customers forms a very large control group, which can be directly compared to the competitive market of more than 1.3 million customers – making such analysis globally unique. Analysis of Queensland market conditions concludes the policy is welfare enhancing. To be clear, rising electricity prices are a problem, but price discrimination is not. The deregulated competitive market is, perhaps unsurprisingly, better at regulating the overall average tariff and consumer welfare has been enhanced by $184 million per annum – with some consumer segments very materially better off. However, certain modes of failure remain, viz. an inter-consumer misallocation problem and lack of transparency vis-à-vis the anchoring of discounts – known as the “discounts off what?” problem. Resolving the inter-consumer misallocation problem is relatively straight forward via ensuring energy retailers (voluntarily) move vulnerable customers onto a Benchmark-equivalent or suitably discounted tariff. Due to the non-linearity of tariffs and the rising mix of discrete metered loads, the latter can be best solved by producing a weighted average of Standing Offers, and using this as the benchmark. |
| Keywords: | Price discrimination, electricity prices, jawboning |
| JEL: | D4 L5 L9 Q4 |
| Date: | 2018–09–10 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1849&r=reg |
| By: | Klepacka, Anna M.; Meng, Ting; Winek, Magdalena; Stepien, Anna; Florkowski, Wojciech J. |
| Keywords: | Land Economics/Use, Resource/Energy Economics and Policy, Community/Rural/Urban Development |
| Date: | 2017–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258495&r=reg |
| By: | Martin L. Weitzman; Bjart Holtsmark (Statistics Norway) |
| Abstract: | Linkage of cap-and-trade systems is typically advocated by economists on a general analogy with the beneficial linking of free-trade areas and on the specific grounds that linkage will ensure cost effectiveness among the linked jurisdictions. An appropriate and widely accepted specification for the damages of carbon dioxide (CO2) emissions within a relatively short (say 5-10 year) period is that marginal damages for each jurisdiction are constant (although they can differ among jurisdictions). With this defensible assumption, the analysis is significantly clarified and yields simple closedform expressions for all CO2 permit prices. Some implications for linked and unlinked voluntary CO2 cap-and-trade systems are derived and discussed. |
| Keywords: | linkage; cap and trade; pollution; climate change |
| JEL: | Q50 Q51 Q52 Q54 Q58 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:883&r=reg |
| By: | Dirk Brounen |
| JEL: | R3 |
| Date: | 2017–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_edu_114&r=reg |
| By: | Auffhammer, Maximilian; Rubin, Edward A. |
| Keywords: | Resource/Energy Economics and Policy, Land Economics/Use, Research Methods/Statistical Methods |
| Date: | 2017–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258439&r=reg |
| By: | Lindgren, Samuel (CTS - Centre for Transport Studies Stockholm (KTH and VTI)) |
| Abstract: | Credible estimates of the cost of traffic noise are crucial to the assessment of the merits of noise control policies. This study estimates the cost of aircraft noise by measuring its capitalization into housing prices following an unexpected renewal of the operating contract for a local airport. The results show that a one decibel increase in aircraft noise leads to a reduction in housing values of 0.3 percent, or $1,200, on average. The capitalization rate is larger the higher is the property’s value, size and standard which suggest that owners of these houses benefit relatively more from noise abatement measures. |
| Keywords: | noise pollution; value of environmental goods |
| JEL: | Q51 Q53 R23 R31 R41 |
| Date: | 2018–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2018_015&r=reg |
| By: | Abolhasani, L.; Tajabadi, M.; Shahnoushi Forushahi, N. |
| Abstract: | Contrary to the traditional supply policies, the integrated water resources management concentrates mainly on demand policies in which water tariffs are the most effective tools in achieving economic efficiency through management of water consumption. It is therefore important for policy makers and water managers to understand price elasticity for water demand presenting how changes in water tariffs affect water consumption. In this study, we reviewed 21 empirical case studies in Iran, including journal articles, master thesis and PhD dissertations, from which 65 estimates of price elasticity for residual water demand were collected. Using t-tests, the collected estimates of price elasticity found to be statistically different. Applying the meta-analysis approach that is focused on the two main objectives of publication bias and publication heterogeneity, it is attempted to explain the heterogeneity in the reported studies. Publication bias was tested using different techniques of meta-analysis. Using meta regression, impacts of theoretical specification, model specification, data characteristics and population the heterogeneity across the reported elasticity estimates are examined. Inclusion of income, use of time-series datasets, natural logarithm function of demand and application of stone greay theory are all found to affect the estimate of the price elasticity. The population density and use of OLS technique to estimate the demand parameters do not significantly influence the estimate of the price elasticity. |
| Keywords: | Agricultural and Food Policy, Land Economics/Use |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:275890&r=reg |
| By: | Song, Danbee; Sam, Abdoul G. |
| Keywords: | Resource/Energy Economics and Policy, Productivity Analysis, Environmental Economics and Policy |
| Date: | 2017–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258529&r=reg |
| By: | Kovacs, Kent; Lee, Ji Yong; Nayga, Rodolfo M.; Henry, Christopher; Tsiboe, Francis; Krutz, Larry |
| Keywords: | Environmental Economics and Policy, Agricultural Finance, Production Economics |
| Date: | 2017–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258518&r=reg |
| By: | Clancy, Matthew S.; Sneeringer, Stacy E. |
| Keywords: | Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Health Economics and Policy |
| Date: | 2017–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea17:258516&r=reg |