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on Regulation |
| By: | Roland Bénabou (Princeton University); Jean Tirole (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, IAST - Institute for Advanced Study in Toulouse) |
| Abstract: | We analyze how private decisions and optimal public policies are shaped by personal and societal preferences, material incentives, and social norms. We show how honor and stigma interact with incentives and derive optimal taxation. We then analyze the expressive role of law as embodying society's values and identify when it calls for a weakening or a strengthening of incentives. The law should be softened when it signals agents' general willingness to contribute to the public good and toughened when it signals social externalities. We also shed light on norms-based interventions, societies' resistance to economists' messages, and the avoidance of cruel and unusual punishments. |
| Keywords: | Expressive law, Social norms, Incentives, Motivation |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05577272 |
| By: | Mara Bala?a; Michael G Pollitt |
| Keywords: | Electricity market reform, industrial decarbonisation, industrial policy, industrial relocation, zonal electricity prices |
| JEL: | O14 R11 Q41 L9 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2602 |
| By: | Michael G Pollitt; Daniel Duma; Andrei Covatariu; Paul Nillesen |
| Keywords: | Distribution System Operators, energy transition, innovation |
| JEL: | L94 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2603 |
| By: | Estrin, Saul; Meyer, Klaus; Kretschmer, Tobias |
| Abstract: | Competition policy establishes the institutional framework for competitive dynamics in market economies. Recently, the relevance and impact of traditional competition policy has been challenged by the rise of the digital economy, where we see a small number of large platform firms, frequent takeovers and mergers, and the potential for using customer data to join and dominate previously separate markets. We provide a framework to explain the basis for contemporary competition policy, and explore implications for company strategy within and beyond the digital sector. Some of the most radical thinking about how competition policy might address the challenge of the digital economy originates from Europe, itself a major market for technology firms. We illustrate this thinking with exemplars from the practice of the EU Commission. Although existing competition policy can provide a basis for addressing monopolistic abuses in digital markets, practices are shifting to address novel sources of market power, including the governance architecture of digital platform firms and their ecosystems, the transferability of personal data, and the interoperability of systems and standards. We consider implications for policymakers. Corporate strategists must also understand how the evolving competition policy framework is impacting competitive dynamics of both platform operator and platform complementing entrepreneurs. |
| Keywords: | European competition policy; mergers and aquisitions; abuse of monopoly power; platforms; digital sector; personal data |
| JEL: | J50 J1 |
| Date: | 2025–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:127060 |
| By: | Paul Simshauser; Joel Gilmore |
| Keywords: | Renewables, coal, natural gas, dispatchable plant capacity |
| JEL: | D52 D53 G12 L94 Q40 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2604 |
| By: | Owen Kay; Robert Reaser; Reid Taylor |
| Abstract: | Artificial-intelligence-driven data centers are reversing two decades of flat U.S. electricity demand and have generated questions about how this growth will impact electricity prices. We quantify this effect using an hourly, unit-level least-cost dispatch model covering wholesale electricity markets in the continental United States. We find that existing data centers have already increased wholesale prices by 3 to 5% on average nationwide, with substantially larger effects in regions hosting major data center corridors. Extending the model through 2028, we show that if proposed construction proceeds under high-utilization scenarios, wholesale prices could rise dramatically (50%), while more moderate build-out yields smaller (20%) but still meaningful effects. Impacts vary due to utilization and build-out assumptions. Finally, we use the model to address several policy discussions including optimal data center siting decisions and renewable build-out uncertainty. |
| Keywords: | electricity prices; energy; data centers; artificial intelligence |
| JEL: | L94 P18 Q41 Q42 Q48 |
| Date: | 2026–03–20 |
| URL: | https://d.repec.org/n?u=RePEc:fip:feddwp:102959 |
| By: | Hugo Morão |
| Abstract: | On April 28, 2025, the Iberian Peninsula experienced a complete electrical blackout affecting 47 million people across Spain and Portugal. Drawing from the ENTSO-E investigation, this paper examines the policy implications of this event for power system management during rapid decarbonization. The investigation identified an unprecedented cascade of generation disconnections triggered by overvoltage conditions, tracing the root cause to institutional rather than technical failures: regulatory barriers prevented the utilization of renewable capacity with certified voltage control capability, market design incentives misaligned operational decisions with real-time stability requirements, and governance fragmentation impeded coordinated crisis response. These findings offer lessons for policymakers navigating the tension between market efficiency and system security in renewable-dominated grids. |
| Keywords: | power systems; power blackout; renewable energy integration; electricity market design; grid services; energy policy. |
| JEL: | D47 E65 F15 L94 N74 Q54 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp04132026 |
| By: | Sergei Kichko (Department of Economics and Management, University of Trento and CESifo); Marco A. Marini (Department of Social and Economic Sciences, Sapienza University of Rome); Riccardo D. Saulle (Department of Economics and Management, University of Padova); Jacques-Francois Thisse (CORE-UCLouvain and CEPR) |
| Abstract: | This paper extends the CES model of monopolistic competition to the case where varieties are both horizontally and vertically differentiated. A distinctive feature of our model is the presence of a network externality, which operates through the number of varieties available at each quality level. Depending on the quality gap, there are corner equilibria in which consumers purchase only high-quality or low-quality varieties, or an interior equilibrium in which consumers are split between the two qualities. Unlike the CES model of monopolistic competition, the equilibrium is never efficient and the market may even select the outcome with the lowest surplus. |
| Keywords: | Monopolistic competition, vertical differentiation, horizontal differentiation |
| JEL: | D42 D43 L1 L12 L13 L41 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:fem:femwpa:2026.11 |
| By: | Ibadoghlu, Gubad |
| Abstract: | This article examines the implications of the European Union's recent energy policy developments, with a particular focus on the strategy to phase out Russian gas imports and diversify supply sources. It analyzes the vulnerabilities inherent in the EU's diversification approach, highlighting the introduction of new regulatory measures-most notably Regulation (EU) 2026/261-which establish strict controls to prevent the re-entry of Russian gas through third countries. These measures, including enhanced origin verification requirements, carry significant implications for external suppliers such as Azerbaijan and transit countries like Türkiye. The analysis identifies a structural dilemma facing the EU: despite diversification efforts, approximately 90% of its gas supply remains externally sourced, exposing the bloc to geopolitical risks, global price volatility, and long-term infrastructure lock-in. While dependence on Russian pipeline gas has declined sharply, the EU has increasingly shifted toward alternative suppliers, particularly liquefied natural gas (LNG) from the United States, which accounted for an estimated 57% of EU LNG imports by 2025. This shift raises critical questions about whether diversification efforts are effectively reducing dependency or merely replacing one dominant supplier with another. The article argues that the EU's external energy policy must balance short-term energy security with long-term sustainability objectives. It concludes that the success of the EU's energy transition will depend not only on eliminating reliance on Russian gas but also on avoiding the creation of new structural dependencies. |
| JEL: | P16 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:339652 |
| By: | Sardo, Alessio; Grillo, Allegra; Kaczmarek, Angelika; Mateos Durán, Arnulfo Daniel |
| Abstract: | This article investigates how legal systems and legal experts across Europe respond to short-term rental accommodation (STRA), focusing on enforcement and authority allocation. It combines a comparative legal analysis of Germany, Poland, Italy and Spain with an experimental expert survey of approximately 180 legal scholars, embedding a strategic–interaction game that varies regulatory and market conditions. Findings reveal institutional lock-in: both legal systems as a whole and legal experts as individuals rely on traditional property/tenancy and competition frames, reinforcing path dependence. Experts also tend to overestimate compliance, even when fines are low and easily absorbed, underestimating the likelihood of strategic non-compliance. |
| Keywords: | short-term rental accommodation; Airbnb; overtourism; European Union competition law; affordable housing; tenancy models |
| JEL: | R21 R50 |
| Date: | 2026–03–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:137828 |
| By: | Mariam El Harras (ENCGT - Ecole Nationale de Commerce et de Gestion de Tanger - UAE - Abdelmalek Essaadi University [Tétouan] = Université Abdelmalek Essaadi [Tétouan]) |
| Abstract: | Regulatory technology (RegTech) is transforming financial compliance by integrating advanced information technologies to strengthen anti-money laundering and countering the financing of terrorism (AML-CFT) frameworks. Recent literature suggests that such technologies represent more than just an efficiency tool; they mark a paradigm shift in regulation and the evolution of financial oversight (Kurum, 2023). This paper aims to provide a narrative review of recent RegTech applications in financial crime prevention, with a focus on key compliance domains. A structured literature review was conducted to examine publications between 2020 and 2024 with a thematic synthesis of findings related to customer due diligence (CDD) and know your customer (KYC), transaction monitoring, regulatory reporting and compliance automation, information sharing and cross-border cooperation, as well as cost efficiency. Findings reveal that RegTech solutions give financial institutions more responsibility for detecting and managing financial crime risks, making them more active players in compliance processes traditionally overseen by regulators. The combined use of technologies such as artificial intelligence (AI), blockchain, and big data also generates synergistic effects that improve compliance outcomes beyond what these technologies achieve individually. This demonstrates the strategic relevance of integrated RegTech approaches. |
| Keywords: | Compliance Automation, Financial Crime Detection, Systematic Narrative Literature Review, AML-CFT, O33 RegTech, K22, G28, JEL Classification: E44, JEL Classification: E44 G28 K22 O33 RegTech AML-CFT Compliance Automation Financial Crime Detection Systematic Narrative Literature Review |
| Date: | 2025–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05324285 |
| By: | Paul Simshauser; ; |
| Keywords: | Strategic reserve, energy-only markets, resource adequacy |
| JEL: | D52 D53 G12 L94 Q40 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2605 |
| By: | Carmassi, Jacopo; Evrard, Johanne; Gati, Zakaria; Milea, Cyprien; Parisi, Laura; Rouveyrol, Clément; Lemaire, Olivier Dumora; Spolaore, Alessandro |
| Abstract: | This paper provides an evidence-based assessment of the EU supervisory landscape by combining a comprehensive mapping of supervisory models and authorities with an analysis of capital market players across key sectors, including market infrastructures, asset management, and crypto-asset service providers. It documents a highly complex and fragmented supervisory architecture, characterised by a wide variety of national supervisory models and multiple authorities operating across the Union. While regulatory harmonisation through the Single Rulebook has progressed, supervisory responsibilities for capital market players remain largely national, with limited and uneven EU-level powers. This institutional fragmentation is increasingly misaligned with market realities, as capital markets have become more cross-border and integrated, albeit with important differences across sectors. The paper develops an analytical framework to assess options for a review of the EU capital markets supervisory architecture. Based on the sectoral mapping, it distils a few guiding principles for supervisory integration: a consistent approach based on common criteria (such as size and cross-border relevance) while accounting for sectoral specificities, and close cooperation between EU and national authorities. Finally, it conducts a sensitivity analysis around alternative degrees of supervisory integration and calibration criteria, and discusses the governance arrangements needed to make integrated supervision effective in practice. The analysis shows that a more integrated supervisory framework could deliver four key benefits: enhanced supervisory effectiveness, improved supervisory efficiency, reduced complexity and compliance burdens for firms operating across jurisdictions, and the removal of supervisory barriers that currently hinder the cross-border integration of EU capital markets. JEL Classification: E61, F36, G18, G20, G23 |
| Keywords: | capital markets union, ESMA, financial integration, financial supervision, market infrastructure, savings and investments union |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbops:2026383 |
| By: | Yasaman Sarabi (HWU - Heriot-Watt University [Edinburgh]); Paola Tubaro (CNRS - Centre National de la Recherche Scientifique, ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Water is a key sector with major repercussions on health, the natural environment, and the economy. Public ownership and control of water infrastructures are the norm in most countries. Yet some private water companies emerged as early as the nineteenth century. In the last few decades, many governments, especially in developing countries, have sought the involvement of the private sector. This work contributes to the extant literature by developing a multi-disciplinary framework to look at private participation in the sector in terms of the overall trends of governments and companies' tendencies to form strategic alliances on water projects. In this study, the World Bank database on Private Participation in Infrastructure (PPI) is used and Social Network Analysis and GLM are implemented as analytical tools. This study finds that alliances between governments and companies on PPI projects are positively impacted by positional and relational embeddedness. Furthermore, governments and companies with a shared language and those that are geographically proximate are more likely to engage in PPI projects. A key policy finding is that on average, countries engaged in more PPI projects have a higher Sustainable Development Goal (SDG) 6 (Clean Water & Sanitation for All) category score. |
| Keywords: | Private Participation in Infrastructure, Water infrastructures, Social Network Analysis, Interorganizational Relationships, Public-Private Partnerships |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05089203 |
| By: | Diego Rodríguez |
| Abstract: | Como ocurrió de modo recurrente con la sucesión de Reales Decretos Ley tras el comienzo de la guerra en Ucrania, el recientemente convalidado Real Decreto Ley 7/2026, de 20 de marzo, por el que se aprueba el Plan Integral de Respuesta a la Crisis en Oriente Medio (RDL en adelante), va mucho más allá de un conjunto de medidas dirigidas a paliar los impactos del aumento del precio de la energía en las rentas de los consumidores. De hecho, las medidas aprobadas con ese objetivo son una parte pequeña de las 143 páginas del RDL y la mayor parte del articulado realiza una transformación importante de diversos aspectos de la regulación del sector energético, particularmente del eléctrico. El objetivo principal de este trabajo es analizar y valorar esos cambios. |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:fda:fdafen:2026-09 |