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on Regulation |
| By: | Genakos, Christos D.; Valletti, Tommaso; Verboven, Frank |
| Abstract: | We study the dual relationship between market structure and prices and between market structure and investment in mobile telecommunications. Using a uniquely constructed panel of mobile operators' prices and accounting information across 33 OECD countries between 2002 and 2014, we document that more concentrated markets lead to higher end user prices. Furthermore, they also lead to higher investment per mobile operator, though the impact on total investment is not conclusive. Our findings are not only relevant for the current consolidation wave in the telecommunications industry. More generally, they stress that competition and regulatory authorities should take seriously the potential trade-off between market power effects and efficiency gains stemming from agreements between firms. |
| Keywords: | Investments; market structure; mergers; Mobile telecommunications; prices |
| JEL: | K20 L10 L40 L96 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12054&r=reg |
| By: | Collins, Matthew; Dempsey, Seraphim; Curtis, John |
| Abstract: | Improving the energy efficiency of residential dwellings is seen by policy-makers as an important tool to help mitigate the impacts of climate change. Many countries, including Ireland, have put in place policies aimed at stimulating energy efficiency renovations in private households. Options to induce further retrofitting activity include the possibility of altering the structure of financial incentives on offer. At the moment, the Better Energy Homes scheme comprises a cash rebate to home owners following the completion of retrofit works. However, alterations to the incentive structure may be more or less preferred by different segments of the population. We analyse these preferences toward different financing structures. We find that the most preferred option of the choice set presented to respondents is the status quo of a post-retrofit cash rebate, followed closely by the alternative of an upfront discount. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp562&r=reg |
| By: | Antoine Bonleu (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - CNRS - Centre National de la Recherche Scientifique - ECM - Ecole Centrale de Marseille - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales) |
| Abstract: | The aim of this paper is to explain over-regulation and local social capital as barriers to immigration. The interest of social networks is that conflict resolution is independent of the law. Hence, if local individuals develop local social capital and regulation, foreigners without social networks are disadvantaged and can less easily migrate. We develop a two-country search-theoretic model where we endogenize the choice of procedural formalism (PF) and the network size. This model features two different equilibria: a Mediterranean equilibrium with PF and dense local social network and a Scandinavian and Anglo-Saxon equilibrium without PF and local social networks. |
| Keywords: | housing market regulation,mobility,local social capital,climate amenities,social networks |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01502604&r=reg |
| By: | Hunt Allcott; Michael Greenstone |
| Abstract: | This paper sets out a framework to evaluate the welfare impacts of residential energy efficiency programs in the presence of imperfect information, behavioral biases, and externalities, then estimates key parameters using a 100,000-household field experiment. Several results run counter to conventional wisdom: we find no evidence of informational or behavioral failures thought to reduce program participation, there are large unobserved benefits and costs that traditional evaluations miss, and realized energy savings are only 58 percent of predictions. In the context of the model, the two programs we study reduce social welfare by $0.18 per subsidy dollar spent, both because subsidies are not well-calibrated to estimated externality damages and because of self-selection induced by subsidies that attract households whose participation generates low social value. However, the model predicts that perfectly calibrated subsidies would increase welfare by $2.53 per subsidy dollar, revealing the potential of energy efficiency programs. |
| JEL: | D12 L94 Q41 Q48 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23386&r=reg |
| By: | Hyland, Marie; Bertsch, Valentin |
| Abstract: | Across the EU, significant investments are being made in renewable generation and grid technologies, however, policy makers and planners are frequently met with resistance from local communities to proposed infrastructure development. Offering some form of compensation to the affected communities may reduce objections and minimise project delays. While there are numerous methods of compensating and involving local communities, evidence on which methods are most effective at increasing acceptance of infrastructure developments is scant. We therefore carry out a nationally-representative survey of Irish citizens to analyse how different compensation methods affect acceptance. Ireland is a useful case study because of its high RES-E targets. Respondents are presented with four compensation models for the local construction of a wind farm, and two for the local development of the transmission grid. While it is often reported that communities would prefer deeper levels of involvement, we find no evidence of this. Instead, we find a preference for schemes in which people receive financial compensation without sharing in the ownership and associated risks of project development. Our econometric analyses show that certain socio-demographic characteristics, for example, age and income are significant predictors of people’s acceptance under different schemes, while a person’s education level significantly predicts whether a particular compensation scheme will increase acceptance. Moreover, we find that the satisfaction with local planning procedures and the tradeoff people make between environmental sustainability and economic competitiveness consistently affect people’s attitudes. Such evidence can help policy makers better understand and design policies to minimise resistance to energy infrastructure development. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp559&r=reg |
| By: | Stephen Gibbons; Teemu Lyytikäinen; Henry Overman; Rosa Sanchis-Guarner |
| Abstract: | This paper estimates the impact of new road infrastructure on employment and labour productivity using plant level longitudinal data for Britain. Exposure to transport improvements is measured through changes in accessibility, calculated at a detailed geographical scale from changes in minimum journey times along the road network. These changes are induced by the construction of new road link schemes. We deal with the potential endogeneity of scheme location by identifying the effects of changes in accessibility from variation across small-scale geographical areas close to the scheme. We find substantial positive effects on area level employment and number of plants. In contrast, for existing firms we find negative effects on employment coupled with increases in output per worker and wages. A plausible interpretation is that new transport infrastructure attracts transport intensive firms to an area, but with some cost to employment in existing businesses. |
| Keywords: | productivity, employment, accessibility, transport |
| JEL: | D24 O18 R12 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0214&r=reg |
| By: | Derek Lemoine |
| Abstract: | I reconcile a benchmark model of directed technical change with the historical experience of energy transitions by allowing for a non-unitary elasticity of substitution between machines and the other factor of production, interpreted here as energy resources. I show that the economy becomes increasingly locked-in to the dominant sector when machines and resources are gross substitutes, but a transition from the dominant sector to the other is possible when machines and resources are gross complements. Consistent with history, a transition in research activity leads the transition in resource supply. A calibrated numerical implementation shows that innovation is critical for climate change policy. A policymaker would use a U-shaped emission tax trajectory so as to immediately transition innovation away from the fossil sector, wait for clean technology to improve, and then hasten a transition in resource supply later in the century. |
| JEL: | N70 O33 O38 O44 Q43 Q54 Q55 Q58 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23420&r=reg |
| By: | Zhai, Y.; Biel, K.; Zhao, F.; Sutherland, J.W. |
| Date: | 2017–04–27 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:87366&r=reg |
| By: | Chen Lin; Thomas Schmid; Michael S. Weisbach |
| Abstract: | Production inflexibility together with product price uncertainty creates production risk, which is a potentially important factor for firms’ liquidity management. One industry for which production risk can be measured is the electricity producing industry. We use data on hourly electricity prices in 41 markets to measure fluctuations in output prices and information on over 60,000 power plants to approximate firms’ cost to vary output quantities. Our results suggest that higher electricity price volatility leads to increased cash holdings, but only in firms using inflexible production technologies. This effect is robust to a number of specification choices including instrumenting for volatility in electricity prices using weather forecast data. After deregulation, firms hold 20-25% more cash, suggesting that the process of deregulation increases the risk firms’ face. Production risk affects cash holdings most in financially constrained firms, and in firms that cannot easily hedge the electricity price through derivative markets. Capital market liquidity and balance sheet liquidity appear to be substitutes for one another. |
| JEL: | G3 G32 G35 L5 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23434&r=reg |
| By: | Elena Argentesi; Albert Banal-Estañol; Jo Seldeslachts; Meagan Andrews |
| Abstract: | We present an ex-post analysis of the effects of GDF’s acquisition of Suez in 2006 created one of the world’s largest energy companies. We perform an econometric analysis, based on Difference-in-Difference techniques on the market for trading on the Zeebrugge gas hub in Belgium. Removing barriers to entry and facilitating access to the hub through ownership unbundling were an important part of the objectives of the remedies imposed by the European Commission. Our analysis shows a price decline after the merger. This decline suggests the remedies were effective in limiting the potential anti-competitive effects of the merger. Moreover, it suggests that ownership unbundling has generated improved access to the hub. Therefore, the remedies may have done more than simply mitigate the potential anti-competitive effects of the merger; they may have effectively created competition. |
| Keywords: | Mergers, Ex-post Evaluation, Gas sector, Hub prices |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:ete:msiper:582764&r=reg |
| By: | Mahrous, Walaa |
| Abstract: | African countries still lack a huge amount of energy that is necessary to increase economic growth, alleviate poverty, and sustain economic development (energy insecurity). Public investment in energy sector is still limited to supply household and private sector with their energy needs. Only private investment in renewable energy can play a major role in filling this gap. By applying SWOT analysis, this study illustrates the major threats and weaknesses (challenges) faced by the private investment in renewable energy sector in Africa vis-à-vis the main opportunities and strengths (benefits) these investments can get. Finally, it ends with some suggested solutions that can help at improving conditions of this vital sector and attracting more private investments to it. |
| Keywords: | Private Investment, Renewable Energy, SWOT Analysis. |
| JEL: | Q20 Q42 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:79271&r=reg |
| By: | ITF |
| Abstract: | App-based for-hire transport services make mobility more efficient by better matching supply and demand. They offer passengers a high degree of predictability and ease of use, and drivers with highly flexible work opportunities. Yet the popularity of app-based services has eroded the market share of traditional taxi operators, causing significant friction that is manifesting itself in court cases and even physical violence. How to regulate these new services is therefore high on the agenda of governments around the world. This study, commissioned by the Portuguese Institute for Mobility and Transport, reviews legislation and regulatory frameworks for taxi and for-hire transport services in Portugal and six other countries in order to foster an evidence-based discussion of the issue. 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: | 2016–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:24-en&r=reg |
| By: | Kenta Tanaka (Faculty of Economics, Musashi University); Shunsuke Managi (Urban Institute, Kyushu University) |
| Abstract: | Improving energy efficiency is the one of the best environmental/resource policy. Previous studies have measured energy efficiency in the industrial sector. We further contribute understanding what factors affect energy efficiency changes. This study measures energy efficiency based on plant level data in the Japan'paper/pulp industry and cement industry as energy intensive sectors. We then reveal the relationship between industry agglomeration effect and energy efficiency of each factory. Our results show several important findings. First, energy efficiency has improved in recent years in the paper and pulp industry as well as the cement industry. However, the factors for improvement of energy efficiency differ between each industry. Second, industry agglomeration affects energy efficiency. In the paper and pulp industry, the same industry agglomerations contribute to improvements in the energy efficiency. However the agglomeration effect is negative for energy efficiency in the cement industry. |
| Keywords: | Energy efficiency, Productivity analysis, Industry agglomeration, Data envelopment analysis |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2017-3&r=reg |