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on Regulation |
| By: | Stuck, Jana; Kulenkampff, Gabriele; Eltges, Fabian |
| Abstract: | In 2019, the European Commission published the WACC Notice that sets out a methodology for estimating the weighted average costs of capital (WACC) used by national regulatory authorities in the cost regulation of the telecommunication sector. The Notice is explicitly limited to legacy infrastructure and does not address Very High Capacity Networks. The Commission's Recommendation on the regulatory promotion of gigabit connectivity advises that NRAs may apply a VHCN risk premium in addition to the applicable WACC, but provides less methodological guidance for its calculation. This paper provides an overview of current regulatory practices for determining the WACC for both legacy networks and VHCNs in Europe. It examines the implementation of the WACC Notice across Member States, assessing its impact and identifying notable deviations from the prescribed methodology. It further examines Member States' approaches to determining a risk premium for VHCN investments. The analysis draws on an extensive literature review and interviews with five national regulatory authorities. Findings indicate that the WACC Notice has largely standardised the methodology for calculating the regulated WACC for legacy infrastructure, although differences remain in the frequency of WACC updates. Overall, WACC values across Member States have declined since the Notice's introduction. Several NRAs adjusted their methodology for calculating the risk-free interest rate between 2022 and 2024, placing greater weight on more recent data in order to reflect macroeconomic developments. By 2025, most NRAs returned to the methodology of the WACC Notice, as the 5-year average better reflects prevailing interest rates. In contrast, only a few Member States calculate a VHCN risk premium, and no standardised methodology exists. This results in substantial differences in VHCN risk premiums both in absolute terms and relative to legacy WACC. Additional risks for VHCN investments vary by national market conditions and primarily arise from the lack of established infrastructure compared to legacy networks. These risks are expected to diminish over time. |
| Abstract: | Im Jahr 2019 veröffentlichte die Europäische Kommission die WACC Notice, in der eine Methodik zur Schätzung der gewichteten durchschnittlichen Kapitalkosten (WACC) dargelegt wird, die von den nationalen Regulierungsbehörden bei der Kostenregulierung im Telekommunikationssektor verwendet wird. Die Notice beschränkt sich ausdrücklich auf bestehende Infrastrukturen und befasst sich nicht mit Very High Capacity Networks (VHCN). In der Empfehlung der Kommission zur regulatorischen Förderung von Gigabit-Konnektivität wird empfohlen, dass die nationalen Regulierungsbehörden zusätzlich zum geltenden WACC eine VHCN-Risikoprämie anwenden können, jedoch werden weniger methodische Leitlinien für deren Berechnung gegeben. Die Ergebnisse des Working Papers zeigen, dass durch die WACC Notice die Methodik zur Berechnung des regulierten WACC für bestehende Infrastrukturen weitgehend vereinheitlicht wurde, jedoch weiterhin Unterschiede hinsichtlich der Häufigkeit der WACC-Aktualisierungen bestehen. Insgesamt sind die WACC-Werte in den Mitgliedstaaten seit Einführung der Mitteilung gesunken. Mehrere NRB haben ihre Methodik zur Berechnung des risikofreien Zinssatzes zwischen 2022 und 2024 angepasst und legten mehr Gewicht auf aktuellere Daten, um makroökonomische Entwicklungen widerzuspiegeln. Bis 2025 kehrten die meisten NRB zur Methodik der WACC-Mitteilung zurück, da der 5-Jahres-Durchschnitt die aktuellen Zinssätze besser widerspiegelt. Im Gegensatz zum Legacy WACC berechnen nur wenige Mitgliedstaaten eine VHCN-Risikoprämie, und es gibt keine standardisierte Methodik. Dies führt zu erheblichen Unterschieden bei den VHCN-Risikoprämien sowohl in absoluten Zahlen als auch im Verhältnis zum Legacy WACC. Zusätzliche Risiken für VHCN-Investitionen variieren je nach den nationalen Marktbedingungen und ergeben sich insbesondere aus der frühen Phase des VHCN-Netzausbaus, die im Vergleich zu bestehenden Legacy-Netzen mit hohen Kosten und unsicherer Nachfrage verbunden ist. Es wird erwartet, dass diese Risiken mit der Zeit abnehmen werden. |
| Keywords: | Weighted Average Cost of Capital (WACC), risk premium, WACC Notice, Gigabit Recommendation |
| JEL: | G31 L51 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wikwps:334524 |
| By: | Chyong, C. K.; Newbery, D. |
| Abstract: | High Variable Renewable Electricity (VRE) penetration inevitably causes curtailment (shedding), normally measured by average curtailment. Marginal curtailment (mc, the fraction of potential output curtailed by the last MW) can be many times higher, raising the long-run marginal cost of investment, proportional to 1/(1-mc). A unit commitment and efficient dispatch model of Britain divided into seven zones by transmission constraints in 2030 demonstrates that these constraints considerably increase mc compared to no congestion despite the considerable expansion of transmission, interconnectors and storage that mitigate curtailment. Current auction design favours levelised costs ignoring curtailment, but long-run marginal costs may be 90% higher, arguing for careful locational planning. |
| Keywords: | Variable Renewable Electricity, Marginal Curtailment, Average Curtailment, Levelised Cost of Electricity, VRE Support Design |
| JEL: | L94 Q28 Q42 Q48 |
| Date: | 2025–10–09 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2581 |
| By: | Cho, Sung Ick |
| Abstract: | Applying the current regulatory framework for abuse of superior bargaining position to abusive conduct (gapjil in Korean) by digital platforms presents two key challenges: identifying harmed parties (victims) and incorporating efficiency considerations. Requiring the identification of each harmed party imposes significant procedural burdens in handling platform abuse cases and may be inadequate to remedy actual harm. In addition, given the intermediary nature of platform services, unfair trading practices may yield direct benefits for other user groups besides victims. Therefore, it is necessary to improve the relevant systems to reduce the burden of identifying victims and to examine possibilities for efficiency gains. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kdifoc:334582 |
| By: | Soumoy, L.; Abada, I.; Ehrenmann, A.; Massol, O. |
| Abstract: | The energy transition requires massive and costly investments in low-carbon power generation and storage. The private sector, however, is increasingly reluctant to undertake such investments. One of the main reasons is that electricity markets are incomplete: risk-averse investors are facing growing risk factors, but are unable to exchange or mitigate these risks beyond a few years. Hybrid market designs, by adding Capacity Remuneration Mechanisms, Contracts for Difference (CfDs), Power Purchase Agreements, and other financial instruments to the energy spot market, allow a better risk allocation between market agents, and have been shown to efficiently foster investment in new generators. Few studies have, however, quantified their efficiency in future systems with a high penetration of both renewable and storage technologies. The present paper tries to fill this research gap. We first propose to generalize the concept of Financial CfDs introduced in the literature to all assets, including storage and consumption assets, into what we define as Financial Twins: financial contracts that fully replicate physical asset’s profits. We then show that a hybrid market design with one Financial Twin per technology is optimal in a power economy: it allows to reach the first best welfare, risk allocation, and investment decisions. To do so, we develop a two-stage stochastic partial equilibrium model of a power system in which agents invest in the first stage in an uncertain environment before trading electricity in the spot market in the second stage. After formulating the model and deriving some useful properties of Financial Twins, we apply the model to the Spanish electricity market to quantify the combined impacts of various Financial Twins in a real-world situation. We also propose and successfully apply a methodology to rank their added value by computing their Shapley values. Our findings indicate that Financial Twins for generators and demand have a far higher value than those for storage. Since over-the-counter battery contracts can already hedge most of a project’s lifetime, policy makers should thus focus on ensuring adequate hedging for more critical technologies through well-designed Financial Twins. |
| Keywords: | Capacity Expansion, Risk Aversion, Risk Trading, Complete or Incomplete Risk Market, Coherent Risk Measure, Financial Twins |
| JEL: | D81 C72 C73 Q41 |
| Date: | 2025–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2582 |
| By: | Martin Dhaussy; Nandeeta Neerunjun; Hubert Stahn |
| Abstract: | The expansion of intermittent electricity increases supply variability and requires greater flexibility from consumers. This results in welfare losses for these agents, which can nevertheless be mitigated by energy storage. Our model analyzes these welfare consequences in the context of short-term variability in renewable energy given fixed dispatchable and storage capacities. We explore an optimal control problem that determines a welfare-maximizing electricity consumption path by adjusting dispatchable and stored energy throughout the short-term production cycle of renewables. This optimization problem identifies three regimes (no storage and active storage, with or without capacity constraints) and provides the associated consumer welfare over this cycle. Under all three regimes, a certain degree of consumer flexibility is part of the optimal solution and entails welfare losses. Active storage reduces these losses but cannot eliminate them completely due to the energy conversion losses induced by this activity. However, when storage capacity is constrained, a proactive adjustment of this capacity can offset the losses. |
| Keywords: | Intermittent Renewable, Energy Storage, Electricity Consumption, Welfare Analysis, Optimal Control |
| JEL: | D61 Q40 Q42 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:gbl:wpaper:2026-01 |
| By: | Zaman, Azaz; Miao, Ruiqing; Khanna, Madhu |
| Abstract: | We examine the effects of economic policy uncertainty (EPU), market deregulation, and political polarization on the utility-scale solar electricity generation in the United States. Using state-level data from 2000 to 2023 and a negative binomial fixed effects model, we find a significant negative relationship between EPU and annual solar electricity generation. On average, a one-unit increase in the EPU index is associated with a 716.51 megawatt-hours (0.14%) decline in expected solar electricity generation annually, likely due to investor risk aversion. While existing studies are on the national level, this study is the first one documenting the impact of EPU at the state-level. Conversely, states with a 1% higher percentage of voters for the Democratic Senate nominees is associated with a 29, 990.92 megawatt-hours (5.86%) higher solar electricity generation annually, reflecting the party's strong support for renewable energy. Finally, deregulated electricity markets are linked to a 211, 778.91 megawatt-hours (41.38%) increase in annual solar electricity generation compared to regulated markets. Based on these findings, we suggest that policymakers should prioritize reducing policy uncertainty, foster bipartisan support, and encourage market deregulation to boost investments in utility-scale solar electricity generation. |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361210 |
| By: | Timothy Weber; Cheng Cheng; Harry Thawley; Kylie Catchpole; Andrew Blakers; Bin Lu; Jennifer Zhao; Anna Nadolny |
| Abstract: | Fossil gas is sometimes presented as an enabler of variable solar and wind generation beyond 2050, despite being a primary source of greenhouse gas emissions from methane leakage and combustion. We find that balancing solar and wind generation with pumped hydro energy storage eliminates the need for fossil gas without incurring a cost penalty. However, many existing long-term electricity system plans are biased to rely on fossil gas due to using temporal aggregation methods that either heavily constrain storage cycling behaviour or lose track of the state-of-charge, failing to consider the potential of low-cost long-duration off-river pumped hydro, and ignoring the broad suite of near-optimal energy transition pathways. We show that a temporal aggregation method based on 'segmentation' (fitted chronology) closely resembles the full-series optimisation, captures long-duration storage behaviour (48- and 160-hour durations), and finds a near-optimal 100% renewable electricity solution. We develop a new electricity system model to rapidly evaluate millions of other near-optimal solutions, stressing the importance of modelling pumped hydro sites with a low energy volume cost ( |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.20286 |
| By: | Sindri Engilbertsson; Sander Onderstal; Leonard Treuren |
| Abstract: | Antitrust authorities impose substantial penalties on firms engaging in illegal price-fixing. We examine how basing cartel fines on revenue, profit, or price overcharge influences prices, cartel incidence, and cartel stability. In an infinitely repeated Bertrand oligopoly game, we show that fines based on revenues/profits/overcharge incentivize firms to charge prices above/equal to/below the monopoly price. Cartels are stable for a smaller range of discount factors when fines are based on overcharges rather than other bases. We test these predictions in a laboratory experiment where subjects can form cartels, which allows them to discuss pricing at the risk of being detected and fined. By equalizing expected fines across treatments, we isolate the effect of the fine's base. We find that market prices are lowest under overcharge-based fines and highest under revenue-based fines. While these results align with the theoretical predictions, cartel incidence and cartel stability do not differ significantly across fining regimes. Our results suggest that antitrust authorities could improve enforcement by shifting from revenue-based fines to profit- or overcharge-based fines. |
| Keywords: | STG/23/026#57790427 |
| Date: | 2025–02–21 |
| URL: | https://d.repec.org/n?u=RePEc:ete:msiper:779661 |
| By: | Kala, Namrata (MIT Sloan School of Management); Haseeb, Muhammad (University of Bristol); Fenske, James (University of Warwick) |
| Abstract: | Effective regulatory design requires an understanding of how regulatory burden affects regulated entities. Using novel data on all applications for environmental permits in five Indian states and a natural experiment, we estimate how regulatory burden of environmental permitting affects firms. Difference-in-difference estimates show that deregulation induces smaller firms to enter and increases entry. Standard data sources would miss these substantial effects, underscoring the importance of collecting data across the firm size distribution. We also use full texts of permit certificates to create novel measures of regulatory burden. Firms in industries with reduced regulations face fewer, less stringent, permit conditions. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:warwec:1593 |
| By: | De Los Reyes, Jesus H. Felix |
| Abstract: | This study investigates the impact of Arizona's 2017 net billing policy change on the quantity of solar energy sold back to the grid by residential customers, known as Net Metering Per Customer (NMPC). Using data from 2014 to 2019 to avoid COVID-19-related distortions, the analysis employs a synthetic control method to estimate counterfactual NMPC trends for both Arizona (state-level) and Tucson Electric Power (utility-level) to overcome the issue of missing control units. Control variables include average temperature, cloud cover, energy price, income, and geographic location. Results show minimal change in NMPC post-policy implementation, with Arizona and TEP's post-treatment trajectories closely tracking their synthetic counterparts. Placebo and ratio tests were conducted and these further indicate that any observed gaps are not statistically significant. The results suggest that the rate change did not significantly alter customer behavior, partially due to policy features such as grandfather clauses and solar rebates. Although the synthetic control method offers valuable information, further robustness checks using alternative models and refined variables are needed, such as a revised definition of cloudy days, to fully validate the effect of the policy. |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361207 |
| By: | Mazen Diwani (Faculty of Social Science, Northeastern University, London (UK)); Al Mamun (Center for Policy and Economic Research (CPER), Dhaka (Bangladesch)); Sherif Hassan (M&S Research Hub) |
| Abstract: | European energy markets experienced unprecedented disruptions following Russia’s invasion of Ukraine on 24 February 2022, exposing long-standing structural vulnerabilities in fossil fuel–dependent systems and threatening progress toward Sustainable Development Goal 7 (SDG 7). This study provides a causal analysis of the conflict’s immediate impact on European energy markets using a Regression Discontinuity Design (RDD) that leverages the sharp temporal cutoff created by the invasion. Drawing on monthly data for 25 European countries from 2019–2024, we examine four core outcomes: natural gas import volumes, crude oil import volumes, Title Transfer Facility (TTF) natural gas prices, and wholesale electricity prices. Our findings reveal significant supply-side adjustments following the conflict, with natural gas and crude oil imports exhibiting heterogeneous responses depending on pre-war Russian dependency levels. Price dynamics show pronounced but short-lived spikes in TTF gas prices, while electricity market responses are more ambiguous due to bandwidth sensitivity. The results provide empirical evidence of how European energy systems absorbed an exogenous geopolitical shock, highlighting the interplay between supply diversification, market integration, and vulnerability to price volatility. The study contributes to the literature on energy security under geopolitical stress and offers policy-relevant insights into resilience strategies needed to uphold SDG 7 targets during crises. |
| Keywords: | Russia–Ukraine Conflict; Energy Security; Regression Discontinuity Design (RDD); Geopolitical Supply Shocks; European Energy Markets; SDG 7; Sustainability; Market Resilience |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:ris:msrwps:021995 |
| By: | Ren, Yongwang; Bergtold, Jason; Gharib, Mariam; Osman, Eliyasu; Sutley, Elaina; Sharmin, Rumana |
| Abstract: | Households are negatively affected by water outages under the context of more frequent natural disasters, aging water infrastructure, and inadequate investment in upgrading the system. Using choice experiment data and random coefficient model, we estimated Kansas households’ willingness to pay (WTP) to avoid water outages during extreme weather events. The results indicate that the WTP increases with the duration of the water outages at a decreasing rate. The WTP is also higher if the water outage occurred during winter. Furthermore, we find heterogeneous preferences of urban and rural households as the former care more about the time and season when water outages occurred. These findings provide important information and insight for policy makers when making investment decisions on hardening water infrastructure. |
| Keywords: | Demand and Price Analysis |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361201 |
| By: | Ayres, Andrew B.; Bruno, Ellen M. |
| Abstract: | Concerns about ownership consolidation and sectoral reallocation resulting from the privatization and trade of water are predominant barriers that inhibit the adoption of water markets. However, systematic empirical evaluation of these processes is lacking. We study trends in ownership shares and trading behavior in one of the world’s largest and most liquid groundwater markets, located in California’s Mojave Desert. Adoption of volumetric property rights allowed for trading to begin in the mid 1990s. Previous open-access water use and the initial allocation were both highly unequal, with the top 10% of water rights holders extracting more than half of pumpable water. We document that trading in the Mojave market over the course of 25 years mildly increased ownership consolidation and that top ownership shares were influenced by differential application of pumping ramp-down policies designed to achieve long-term sustainability. A few public water supply systems dominate the top ownership shares, but a test for market power finds no evidence of anti-competitive behavior. We find that those who sold out of the market completely were on average smaller agricultural users, but that they received payouts thatwere not statistically different from price received by those remaining in the market. |
| Keywords: | Production Economics |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360733 |
| By: | Puig Jorge Pablo; García Thomas; Porto Alberto; Puig Julián; Rodriguez Chamuss Lourdes; Vezza Evelyn |
| Abstract: | Reversing energy subsidies poses a complex policy challenge, with distributional effects being a central concern since such subsidies are often justified as protection for the most vulnerable households. This paper analyzes the case of the Buenos Aires Metropolitan Area (AMBA) in Argentina, where, after decades of substantial residential energy subsidies, a gradual reduction process has recently begun. A distinctive feature of this reform is the introduction of targeting mechanisms that segment users primarily by self-reported income. The subsidy rollback unfolded in a highly adverse macroeconomic context—marked by currency devaluation and high inflation—which also affected income distribution beyond the tariff adjustments themselves. Using microdata and administrative records, we document that subsidies, historically pro-rich yet progressive, are now better targeted and consequently even more progressive. Both the classification of users and the subsidy amounts assigned to each group reinforced this progressive shift. Nevertheless, the difficult macroeconomic environment has made the path toward improved distributional outcomes non-linear. The Argentine experience offers valuable lessons for other countries facing similar policy challenges. |
| JEL: | H22 D31 D78 Q48 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:aep:anales:4830 |
| By: | ZOHA, MAMUN UZ (University of Technology Sydney) |
| Abstract: | Artificial intelligence (AI) is rapidly transforming financial services and, in doing so, is exposing gaps between technological adoption and existing regulatory frameworks. This paper examines why the Australian Securities and Investments Commission (ASIC) has moved to provide guidance on AI use in financial services, and explores how different degrees of regulation—from none to very heavy—would shape market behaviour and systemic risk. Using Australia as the primary case, and Japan and the United States as benchmarks, the discussion considers AI both as an investment theme that challenges superannuation chief investment officers (CIOs) and as a potential investor or advisory agent in its own right. A qualitative, scenario-based analysis is used to reflect on implications for capital markets, volatility, portfolio composition and the risk of market failure. The paper argues for a balanced, principle-based regulatory approach that maintains innovation and efficiency while preserving market integrity and investor protection. Keywords: Artificial intelligence; financial regulation; ASIC; superannuation; systemic risk; market volatility; herding; governance; Australia; Japan; United States |
| Date: | 2025–12–21 |
| URL: | https://d.repec.org/n?u=RePEc:osf:lawarc:xer7g_v1 |
| By: | Jeroen Hinloopen; Stephen Martin; Sander Onderstal; Leonard Treuren |
| Abstract: | Antitrust laws prohibit private firms to coordinate their market behavior, yet many types of interfirm cooperation are legal. Using laboratory experiments, we study spillovers from legal cooperation in one market to non-competitive prices in a different market. Our theoretical framework predicts that such cooperation spillovers are most likely to occur for intermediate levels of competition. Our experimental findings support this theoretical prediction. In addition, our experimental results show that repeated interaction and communication about prices in a market are not necessary to achieve non-competitive prices in that market, as long as subjects can form binding agreements in a different market. Results from additional treatments suggest that commitment and multimarket contact are necessary for cooperation spillovers to emerge. |
| Keywords: | STG/23/026#57790427 |
| Date: | 2024–12–20 |
| URL: | https://d.repec.org/n?u=RePEc:ete:msiper:779662 |
| By: | Rong, Rong; Crago, Christine L.; Wang, Rui |
| Abstract: | Individuals making a decision about whether to adopt rooftop solar PV technology face significant financial risk, including technology underperformance, unexpected maintenance and repairs, and changes in policy regarding solar PV incentives. The presence of risk as a factor in the adoption decision suggests that individuals with a higher level of risk tolerance are more likely to adopt the technology than those who are risk averse. In addition, early adopters are also more likely to be risk-tolerant than late adopters. In this paper, we use a lab-in-the-field experiment to elicit individual risk preferences from a subject pool of solar PV adopters and non-adopters, and use this data to examine the effect of risk preference on the decision to adopt solar PV. Our findings confirm our hypothesis that risk preference plays a crucial role in determining solar PV adoption status and the timing of adoption. Our findings suggest that reducing risk in the solar market through policy or through risk-mitigating insurance products can help to broaden solar PV adoption among households. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361167 |
| By: | Paul Malliet (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Anissa Saumtally (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | The energy crisis that struck Europe in 2021 as the world bounced back from COVID, and amplified by the Russian invasion of Ukraine, led to a sharp increase in energy prices, particularly gas prices. In this context, European nations implemented emergency measures to protect households' purchasing power and the competitiveness of their businesses. France chose to mitigate energy price rises by implementing a price cap. Making use of a computable general equilibrium model, we explicitly simulate the divergent trajectories of energy prices with and without this price cap. Our results show that the budgetary cost of this measure was lower than initially expected, and while the macroeconomic impact was also relatively small, it did none‑ theless preserve household purchasing power. |
| Abstract: | La crise énergétique qui a frappé l'Europe en 2021, dans un contexte de reprise mondiale post-Covid et amplifiée par l'invasion de l'Ukraine par la Russie, s'est matérialisée par une forte hausse des prix de l'énergie, celui du gaz en tête. Dans ce contexte, les pays européens ont mis en place des mesures d'urgence pour préserver le pouvoir d'achat des ménages et la compétitivité de leurs entreprises. La France a choisi de limiter la hausse des prix de l'énergie en mettant en place un bouclier tarifaire. À l'aide d'un modèle d'équilibre général calculable, nous simulons explicitement des trajectoires de prix de l'énergie avec et sans bouclier tarifaire. Nos résultats montrent un coût budgétaire plus faible que celui initialement anticipé avec un effet macroéconomique relativement faible, mais qui aura néanmoins préservé le pouvoir d'achat des ménages. |
| Keywords: | energy crisis, energy price cap, public policy evaluation, macroeconomics, évaluation des politiques publiques, bouclier tarifaire, Crise énergétique, Macroéconomie |
| Date: | 2025–12–11 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05415742 |
| By: | Alcocer Quinones, Laura |
| Abstract: | This paper evaluates the drinking water quality impacts of stricter state regulations for PFAS contaminants. A key challenge of this analysis is the wide prevalence of interval censoring in PFAS testing. I first show that without further assumptions, treatment effects are not generally identified and applying standard approaches that ignore this issue lead to qualitatively different results. I overcome this problem using a parametric approximation to recover the latent cumulative distribution function through censored maximum likelihood. I implement the changes-in-changes approach using the recovered distribution of concentration to estimate the impact of tightening regulatory standards on water quality. On the intensive margin, I find that notification level changes had no impact on water quality across the distribution. On the extensive margin, I find qualitative evidence of investment in the form of new or retrofitted treatment plants to address PFAS after notification and response levels became more stringent. I find these new treatment plants tend to be located in urban and above average income counties. The methods implemented allow for policy evaluation under interval censoring in a variety of contexts. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360740 |
| By: | Gawel, Erik; Bretschneider, Wolfgang |
| Abstract: | Unlike in developing countries, there tends to be no problem of access to water, electricity, and heating for private households in transition countries. However, transition countries have a considerable amount of low-income households, and the problem of affordability of these environmental-related utility services remains urgent. Welfare economics literature suggests to neglect affordability aspects by separating allocative from distributive impacts of pricing. In practice, this separation runs the risk of rendering impossible any sustainability-oriented price reform. An Institutional Economics approach takes competing objectives into account. From this viewpoint it appears to be worth investigating the affordability-concept. Although the affordability-related research has escalated remarkably in recent years, the theoretical contributions are still limited. Hence, we focus on the simple ratio measure often used in practice. We analyze the arguments speaking for the ‘potential affordability approach’. But we find that - within that approach – adhering formally to the ratio measure is possible only under conditions that make no sense regarding the concern of the measure. Thus for most cases the ratio measure is misleading. Some considerations on practical use for governance conclude the paper. |
| Keywords: | Agricultural and Food Policy, Institutional and Behavioral Economics, Political Economy |
| URL: | https://d.repec.org/n?u=RePEc:ags:iamo10:90795 |
| By: | Lei, Xinyuan; Shi, Guanming; Qiu, Huanguang; Wang, Shukun |
| Abstract: | Governments worldwide have been increasingly focused on how to foster innovation through regulatory frameworks, particularly in developing countries. In 2016, China revised the "Seed Law, " marked a shift from a control-based to a market-oriented framework. This study uses a difference-in-differences strategy to examine the impact of deregulation reform on firms' innovation in China's seed industry from 2013 to 2021. The results reveal a significant positive effect on innovation. We also found that the reform had a significantly greater impact on innovation quantity for larger firms compared to smaller ones, with results remaining robust across extensive checks. Mechanism analysis suggests that for large firms, the increase in approved varieties is driven by both short-term factors such as expanded approval channels and technology licensing, and long-term R&D investments. In contrast, for small firms, it primarily stems from short-term factors, with limited impact from long-term R&D efforts. Additionally, the reform increased innovation quantity without compromising quality for smaller firms, while further enhancing innovation quality among larger firms. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360608 |