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on Regulation |
| By: | Schöne, Andreas; Kunz-Kaltenhäuser, Philipp |
| Abstract: | Track access charges are the main driver of infrastructure costs for rail operators in the rail transport sector, accounting for up to 88 percent of costs. This paper analyzes track access charges of 28 EU countries with the respective trajectories of the company forms employing panel regressions to unbalanced panel data for the period 2011 to 2019. As a result, a fundamental correlation between company forms and track access charges could be determined. Starting from a vertically integrated company, massive cost advantages could be identified for unbundled and partially privatized company forms by avoiding efficiency-impeding behavior. The results shed light on the European railroad packages and their national implementation. |
| Keywords: | Track Access Charges,Railroad Sector,Institutional Quality,Transportation,Industrial Policy |
| JEL: | L11 L14 L42 L51 L52 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:164&r= |
| By: | Johanna Ayrault (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Martijn van den Hurk |
| Abstract: | Public authorities are committing to the decarbonization of economies. Public utilities especially district heating networkscould serve as critical levers for cutting carbon emissions. Heat production accounts for about fifty percent of the global energy consumption and is still heavily carbonized. Fossil-free and locally-based district heating systems are being promoted and implemented with the support of public authorities. These innovative systems raise challenges as they integrate a greater variety of stakeholders than conventional ones. To maximize the creation of public value, public authorities have been setting up co-creation processes with these stakeholders. This paper analyzes how co-creation processes are used in district heating projects, using a framework that revolves around three co-creation activities: setting up a collaborative network, defining the collaborative governance and assessing and learning from project outcomes. These activities are studied throughout the lifecycle of five projects: three innovative district heating networks and two conventional ones. Innovative projects are expected to demonstrate more articulated and elaborate forms of co-creation compared to conventional counterparts, including more activities and a greater diversity of stakeholders involved. The data comes from twenty-seven semi-structured interviews, informal discussions with project stakeholders, and an analysis of project documentspartly publicly available, partly confidential. The research findings focus on (1) demonstrating and explaining the use of co-creation within the selected cases and (2) discussing the critical limitations of and barriers to the integration of co-creation in the utility sector. |
| Keywords: | Public value co-creation,utilities,district heating |
| Date: | 2022–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03721174&r= |
| By: | Neus, Werner; Stadler, Manfred |
| Abstract: | We study quantity and price competition in heterogeneous triopoly markets where two firms are commonly owned by institutional shareholders, whereas the third firm is owned by independent shareholders. With such a mixed ownership structure, the common owners have an incentive to coordinate their firms' behavior. If direct coordination of the operational decisions is prevented by antitrust authorities, delegation to managers enables indirect coordination via the designs of the manager compensation contracts. Compared to direct owner collusion, this more sophisticated type of indirect collusion leads to a lower loss of social welfare in the mode of quantity competition, but to a higher loss of welfare in the mode of price competition. In general, owner coordination via the management compensation contracts is detrimental to welfare: the tragedy of common holdings. |
| Keywords: | Manager compensation,common holdings,shareholder coordination |
| JEL: | G32 L22 M52 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuewef:154&r= |
| By: | Bester, Helmut; Sákovics, József |
| Abstract: | We investigate the welfare effect of increasing competition in an anonymous two-sided matching market, where matched pairs play an infinitely repeated Prisoner's Dilemma. Higher matching efficiency is usually considered detrimental as it creates stronger incentives for defection. We point out, however, that a reduction in matching frictions also increases welfare because more agents find themselves in a cooperative relationship. We characterize the conditions for which increasing competition increases overall welfare. In particular, this is always the case when the incentives for defection are high. |
| Keywords: | Cooperation,Prisoner's Dilemma,Competition,Welfare,Matching,Trust Building |
| JEL: | C72 C73 C78 D6 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:20226&r= |
| By: | Kurt R. Brekke; Chiara Canta; Odd Rune Straume |
| Abstract: | Policy makers use reference pricing to curb pharmaceutical expenditures by reducing coverage of expensive branded drugs. In a theoretical analysis we show that the net effect of reference pricing is generally ambiguous when accounting for entry by generic producers. Reference pricing shifts demand towards generics but also induces the branded producer to become more agressive, which triggers price competition and potentially deters entry by generic producers. To investigate the counter- vailing effects, we exploit a policy reform in Norway with a gradual implementation of reference pricing across substances over time. Using a difference-in-differences approach, we find that treated substances have a sharper decline in both branded and generic drug prices and branded market shares. Despite fiercer price competition, the number of generic producers and products increases after exposure to reference pricing, resulting in a reduction of 30 percent in pharmaceutical expenditures. Thus, we find no evidence for a countervailing entry deterring effect of reference pricing. |
| Keywords: | pharmaceuticals, reference pricing, generic competition |
| JEL: | I11 I18 L13 L65 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9853&r= |
| By: | Giuffrida, Leonardo M.; Spagnolo, Giancarlo |
| Abstract: | In this policy brief, we review the main trade-offs associated with joint procurement, or procurement 'centralization', as identified by procurement scholars. We then focus on the specific case of natural gas. Finally, we compare the procurement of natural gas to that of COVID-19 vaccines, arguing that the centralization of natural gas procurement can be expected to bring greater benefits at lower costs. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewpbs:32022&r= |
| By: | Bolotova, Yuliya V. |
| Keywords: | Agricultural and Food Policy, Demand and Price Analysis, Livestock Production/Industries |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322754&r= |
| By: | Luttmann, Alexander; Gaggero, Alberto A |
| Abstract: | We offer a comprehensive empirical study on hidden-city ticketing (HCT), a pricing phenomenon in the airline industry that occurs when the fare for a nonstop trip from A to B is more expensive than a connecting trip from A to B and B to C. Exploiting a unique panel of over 772 thousand fares for flights departing between October 1st, 2019 and February 29th, 2020, we find that HCT depends on route competition (both on A-B and A-C routes), largely occurs in the last week to departure, and primarily occurs on carriers that operate large hub-and-spoke networks (e.g., American, Delta, and United). |
| Keywords: | advance-purchase, airline pricing, competition, hidden-city ticketing, price discrimination. |
| JEL: | D40 L11 L13 L93 |
| Date: | 2022–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113960&r= |
| By: | Alt, Marius |
| Abstract: | To adequately design and implement effective environmental policies, it is paramount for policymakers to understand preferences for regulatory instruments as well as their individual level determinants. In this study, I experimentally investigate the demand for three environmental policies, comprising nudges, monetary incentives, and punishments. I elicit the demand for these interventions through decisions in a pro-environmental real effort task. The experiment introduces exogenous variation along two dimensions to analyze, whether interventions are (1) demanded as commitment devices to commit to future pro-environmental behavior, and (2) how demand changes when regulation affects not only the self but also others. The results show that a large fraction of individuals demands regulation, which is, however, heterogeneously distributed across participants, being dependent on individual characteristics. Moreover, particularly participants who are sophisticated about their time-inconsistent prosocial preferences demand interventions to commit to pro-environmental behavior. When the intervention is also imposed on other participants, this leads to an increase in the demand, driven by conditionally cooperative individuals who are not averse to constraining others' behavior. Finally, I provide evidence that the experimentally elicited demand for interventions can serve as a predictor of preferences for actual environmental policies. |
| Keywords: | Pro-environmental behavior,Nudges,Economic incentives,Real effort |
| JEL: | Q58 D04 C91 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22028&r= |
| By: | Aguirre, Iñaki; Yenipazarli, Arda |
| Abstract: | This paper analyzes the economic implications of oligopoly price discrimination when competition pressure varies across markets. We find that a necessary condition for price discrimination to enhance social welfare is satisfied when the number of firms is higher in the strong market compared to the weak market. We also investigate certain economic implications of the Robinson-Patman Act (RPA) associated with “meeting competition defense” (MCD). Using equilibrium models, we find a basic rationale for the MCD: in cases of primary-line injury, when competitive pressure is more pronounced in the strong market relative to the weak market, the use of MCD might allow price discrimination to enhance welfare by boosting consumer surplus in the weak market. This result holds true regardless of whether price discrimination occurs in the final good market or intermediate good market, and it is robust to the nature of competition. We also unravel that these results change drastically under secondary-line injury. |
| Keywords: | third-degree price discrimination, Robinson-Patman Act, meeting competition defense, oligopoly, welfare. |
| JEL: | D43 D61 L13 L41 |
| Date: | 2022–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113746&r= |
| By: | Qin, Fei; Ma, Meilin |
| Keywords: | Agribusiness, Marketing, Agricultural and Food Policy |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322243&r= |
| By: | Hobbie, Hannes; Lieberwirth, Martin |
| Abstract: | Integrating large amounts of hydrogen production capacities for decarbonizing energy-intensive industries in Germany can be challenging for transmission system operators. This research investigates interactions of hydrogen production deployment pathways and associated congestion management policies with the operation of the German electricity transmission system for future market projections. Hydrogen electrolysis imputes additional electricity loads above conventional levels. A scenario framework is created representing different geographic electrolyzer deployment pathways and congestion management regulations for electrolyzer operation. Fundamental electricity market modeling and load flow optimization are proposed to evaluate resulting congestion management volumes to resolve grid bottlenecks associated with the market clearing dispatch. Overall results of this work highlight the importance of designing congestion management frameworks that enable efficient utilization of electrolyzers as a redispatch capacity, primarily if a demand-oriented deployment of electrolyzer installations near energy-intensive industries is assumed to support renewable energy integration. The findings of this work assist policymakers and regulators with valuable insights into design options for future congestion management frameworks. |
| Keywords: | ELMOD,Green hydrogen,Electricity grid operation,Congestion management |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:262112&r= |
| By: | Badr Eddine Lebrouhi (SIAME - Laboratoire des Sciences de l'Ingénieur Appliquées à la Mécanique et au génie Electrique - UPPA - Université de Pau et des Pays de l'Adour, EMI - Ecole Mohammadia d'Ingénieurs); Eric Schall (SIAME - Laboratoire des Sciences de l'Ingénieur Appliquées à la Mécanique et au génie Electrique - UPPA - Université de Pau et des Pays de l'Adour); Bilal Lamrani (Faculté des sciences de Rabat); Yassine Chaibi (UMI - Université Moulay Ismail); Tarik Kousksou (SIAME - Laboratoire des Sciences de l'Ingénieur Appliquées à la Mécanique et au génie Electrique - UPPA - Université de Pau et des Pays de l'Adour) |
| Abstract: | To address the climate emergency, France is committed to achieving carbon neutrality by 2050. It plans to significantly increase the contribution of renewable energy in its energy mix. The share of renewable energy in its electricity production, which amounts to 25.5% in 2020, should reach at least 40% in 2030. This growth poses several new challenges that require policy makers and regulators to act on the technological changes and expanding need for flexibility in power systems. This document presents the main strategies and projects developed in France as well as various recommendations to accompany and support its energy transition policy. |
| Keywords: | energy transition,energy storage,energy policy,Renewable Energy,Hydrogen energy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03716839&r= |
| By: | Hlongwane, Nyiko Worship; Daw, Olebogeng David |
| Abstract: | This study investigates the relationship between population growth and electricity consumption in South Africa for the period from 2002 to 2021 collected from StatsSA. The study utilises Seemingly Unrelated Regression model and Dumitrescu and Hurlin (2012) causality tests to analyse the relationship between the variables. Empirical results revealed that there is a negative statistically significant relationship between population growth and electricity consumption in South Africa. The results further reveal one-way causality running from population growth to electricity consumption. The study recommends that the government and policy makers must implement policies aimed at increasing renewable electricity generation to match the gap between electricity demand and growing population thereby reducing constant loadshedding in South Africa. |
| Keywords: | Electricity consumption, population growth, Seemingly Unrelated Regression (SUR) Model, Eskom, South Africa. |
| JEL: | C33 O13 O40 |
| Date: | 2022–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113828&r= |