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on Regulation |
| By: | Fitiwi, Desta; Lynch, Muireann Á.; Bertsch, Valentin |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp616&r=all |
| By: | Nidhi Aggarwal (Indian Institute of Management, Udaipur); Venkatesh Panchapagesan (Indian Institute of Management, Bangalore); Susan Thomas (Indira Gandhi Institute of Development Research) |
| Abstract: | Previous studies find mixed results about how a fee on high order-to-trade (OTR) ratios impacts market quality. Using a natural experiment where such a fee was introduced twice for different reasons, this paper finds evidence of impact only when the implementation matched the motive. We use a difference-in-difference regression, that exploits microstructure features, to find causal evidence of lower aggregate OTR and higher market quality when the fee was used to manage limited exchange infrastructure, but little to no change in the OTRs or market quality when it was used for a regulatory need to slow down high frequency trading. |
| Keywords: | algorithmic trading; financial regulation; market efficiency; market liquidity; financial derivatives |
| JEL: | G14 G18 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2019-011&r=all |
| By: | Meub, Lukas; Runst, Petrik; von der Leyen, Kaja |
| Abstract: | We use a field experiment on energy billing in a German region to evaluate the effect of two behavioral nudges (consumption feedback and social comparison) on electricity consumption. Similar experiments have revealed significant treatment effects, yet the individual variance has proven substantial. On the grounds of these heterogeneous treatment effects and the possibility of cross-country behavioral differences, additional experiments are warranted. For our German participants with low pre-treatment consumption compared with many other countries, we find no treatment effects. Accordingly, we deduce from this that the effect of consumption feedback and social comparison is highly context dependent. |
| Keywords: | Energy efficiency,energy conservation,climate policy |
| JEL: | C9 D1 D8 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:372&r=all |
| By: | Knut Einar Rosendahl |
| Abstract: | With the new rules of the EU ETS, involving cancellation of allowances, cumulative emissions are no longer fixed but depending on the market outcome. Perino (2018) showed that additional abatement effort can reduce cumulative emissions if it occurs within a few years. This article shows that Perino’s result will be reversed, i.e., cumulative emissions increase, if the abatement effort is at a later year, or permanent. Thus, a new green paradox has emerged. |
| Keywords: | emissions trading, green paradox, EU ETS, MSR |
| JEL: | H23 Q54 Q58 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7645&r=all |
| By: | Duan, Hongbo; Mo, Jianlei; Fan, Ying; Wang, Shouyang |
| Abstract: | The stringency of China's energy and climate targets in 2030 and the policy needed to realize these targets are full of controversy, mainly as a result of multiple future uncertainties. This study has developed a stochastic energy-economy-environment integrated model, to assess China's energy and climate targets in 2030, with a particular focus on the carbon intensity reduction, carbon emission peaking, and non-fossil energy development. The probabilities of realizing the targets are obtained, and the nexus among different targets is explored. It's argued that carbon emission management and policy-making should be implemented from the perspective of risk management, and policy makers can take corresponding policy measures based on the degree of confidence required under multiple future uncertainties. It is found that the probabilities of realizing carbon emission-peaking target and non-fossil energy target are low, with the business-as-usual efforts, and additional policies may still be needed. More specific, carbon pricing plays a major role in curbing and peaking carbon emissions, while the policy mix of carbon pricing and non-fossil energy subsidies can peak the carbon emission with relatively low cost compared to the single carbon pricing policy. It is also found that the carbon intensity reduction target is most likely to be attained, followed by the carbon-peaking target, and then the non-fossil energy target, given the same policy efforts. This indicates that, China may not deliberately increase carbon emissions rapidly over the next decade to make the carbon emission peak as high as possible; otherwise, it may be difficult to achieve the non-fossil energy target. |
| Keywords: | Integrated assessment model; Uncertainty; INDC target; China; Carbon emission peaking Carbon pricing; Renewable energy subsidy; 71774153; 71503242; 71403263; 71690245 |
| JEL: | C63 O13 O33 O41 Q43 Q54 |
| Date: | 2018–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:86481&r=all |
| By: | Tovar Reaños, Miguel; Lynch, Muireann Á. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp626&r=all |
| By: | Elisa Lanzi; Rob Dellink |
| Abstract: | Climate change and outdoor air pollution are two of the most challenging environmental issues that modern society faces. These challenges are strongly linked through their emission sources, the sectors they affect and the policies that can be implemented to reduce emissions. They also interact in the way they affect economic growth in the coming decades, although this aspect has been neglected in the literature. This paper presents the first global analysis of the joint economic consequences of climate change and outdoor air pollution to 2060, in the absence of new policies to address these challenges. A common methodology and a consistent modelling framework is used to specify the main economic interaction effects. While this paper provides a useful framework to analyse the interactions between two environmental issues in the economic system, the results need to be interpreted carefully, because of limited data availability. |
| Keywords: | air pollution, Climate change, computable general equilibrium models |
| JEL: | C68 Q54 Q53 |
| Date: | 2019–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:148-en&r=all |
| By: | Odolinski, Kristofer (CTS - Centre for Transport Studies Stockholm (KTH and VTI)); Pyddoke, Roger (CTS - Centre for Transport Studies Stockholm (KTH and VTI)) |
| Abstract: | There is scope for generating welfare effects by changing parking fees, where knowledge on price elasticities are central elements in the implementation of an efficient parking policy. In this paper, we estimate price elasticities of demand for five parking garages in the central business district of Stockholm, using transaction data and a price increase implemented in January 2017. The econometric results for the purchased parking hours show an average elasticity estimate at -0.60, while the effect on the decision to park is -0.45. These elasticities vary for the different parking garages, showing that there is a considerable heterogeneity between garages, even within the central business district, which needs to be considered for an efficient parking policy. Based on our estimated elasticity for garage parking (-0.60) and a willingness to pay a premium for curbside parking in previous research, we calculate a proxy for the elasticity of curbside parking in Stockholm, which is found to be -0.39. |
| Keywords: | Parking; Price elasticity; Garage; Parking policy |
| JEL: | R41 R42 R48 |
| Date: | 2019–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2019_002&r=all |
| By: | Simon Porcher (IAE - Institut d'Administration des Entreprises) |
| Abstract: | Water taxes are employed to correct externalities associated with water pollution or resource scarcity and to raise government revenue. In this paper, using a dataset on more than 4,000 French municipalities, we directly examine how water taxes affect consumer behavior as distinct from tax-exclusive water prices. Our analysis shows that a 10-cent tax increase reduces water consumption by 0.26 percent, similarly to a 10-cent increase in the tax-exclusive water price. The responsiveness of consumers to tax and tax-exclusive price is important because it gives information about consumers' sensitivity to policy interventions versus market prices. |
| Keywords: | Externalities,Water Utilities |
| Date: | 2019–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02145848&r=all |
| By: | Joseph E. Stiglitz |
| Abstract: | Recognizing the importance of the second-best nature of economies, the Stern-Stiglitz report on carbon pricing departed from the recommendation of a single carbon price for all uses at all places and times. This paper provides some of the analytics behind these recommendations. First, I analyze the circumstances in which distributional concerns make desirable a tax or regulation inducing significant reductions in carbon usage in a carbon-intensive sector for which consumers are disproportionately rich. Such policies allow lower carbon prices elsewhere without exceeding carbon emission targets. The cost of the resulting production inefficiency may, under the identified circumstances, be less than the distributional benefits. The paper considers the circumstances in which such differential policies may be best implemented through regulation vs. differential pricing, as well as differential effects on political economy and norm setting. Second, I consider the effect of carbon price trajectories on induced innovation, providing general conditions under which the optimal carbon path should, at least eventually, be falling over time. Finally, I revisit the price-versus-quantity debate and highlight important aspects of the dynamic nature of the problem. |
| JEL: | A1 H23 K32 Q52 Q54 Q55 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25939&r=all |
| By: | Vogelsang, Ingo |
| Abstract: | The economics literature on Net Neutrality (NN) has been largely critical of NN regulation on the basis of theoretical findings that NN violations can be both welfare improving and welfare deteriorating, depending on the circumstances of the case in question. Thus, an ex post competition policy approach would be preferable to a strict ex ante prohibition of NN violations. In contrast, the current paper argues that NN regulation is largely ineffective, in particular, when it comes to the prohibition of fast lanes and other quality of service (QoS) differentiations, and to a lesser extent, when it comes to the zero price rule. NN regulation is effective only in preventing the blocking of specific content and in preventing the favoring of ISP owned content and in preventing some price discriminations. These are also areas where NN regulations are more likely to be welfare-enhancing. Where they are ineffective, NN regulations are likely to create inefficiencies through the cost and allocative inefficiencies caused by NN bypass. The paper ends with a call for theoretical and empirical economic analyses of NN circumvention techniques. |
| Keywords: | net neutrality (NN),quality of service (QoS),price discrimination,content delivery network (CDN),zero-rating,throttling |
| JEL: | L50 L96 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:19023&r=all |
| By: | Isabel Hovdahl |
| Abstract: | One of the most important research questions in climate economics is the relationship between temperatures and human mortality. This paper develops a procedure that enables the use of machine learning for estimating the causal temperature-mortality relationship. The machine-learning model is compared to a traditional OLS model, and although both models are capturing the causal temperature-mortality relationship, they deliver very di?erent predictions of the e?ect of climate change on mortality. These di?erences are mainly caused by di?erent abilities regarding extrapolation and estimation of marginal e?ects. The procedure developed in this paper can ?nd applications in other ?elds far beyond climate economics. |
| Keywords: | Climate change, machine learning, mortality |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:bny:wpaper:0077&r=all |
| By: | Roshanak Azarafshar (Department of Economics, University of Ottawa, Ottawa, ON) |
| Abstract: | This study aims to find the effects of financial point of sales incentives on the sales of electric vehicles across the Canadian provinces from September 2012 to December 2016. My findings indicate that purchase incentives cause the sales of new electric vehicles to increase by 8 percent on average due to a $1000 increase in incentives. I find that 47% of electric vehicle sales across the rebating provinces (Ontario, Quebec, and British Columbia) are attributed to the purchase incentives. Results of the counter-factual simulations imply that the cost of eliminating one tonne of carbon emissions across the provinces that offer incentives over the years of my study is, on average, $216/tonne CO2. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ott:wpaper:1901e&r=all |
| By: | Kenneth Gillingham; Sébastien Houde; Arthur A. van Benthem |
| Abstract: | A central question in the analysis of fuel-economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short-run equilibrium effects of an exogenous restatement of fuel-economy ratings that affected 1.6 million vehicles. Using the implied changes in willingness-to-pay, we find that consumers act myopically: consumers are indifferent between $1 in discounted fuel costs and 15-38 cents in the vehicle purchase price when discounting at 4%. This myopia persists under a wide range of assumptions. |
| Keywords: | fuel economy, vehicles, myopia, undervaluation, regulation |
| JEL: | D12 H25 L11 L62 L71 Q40 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7656&r=all |
| By: | Mathieu Verougstraete (Former staff of the Macroeconomic and Financing for Development Division of United Nations, Economic and Social Commission for Asia and the Pacific) |
| Abstract: | Cross-border infrastructure networks are critical for improving regional connectivity, their financing has however been challenging. This paper examines whether Public-Private Partnerships (PPP) may contribute to their development and reviews experience with this type of financing arrangements in the energy, transport and telecommunication sectors. By involving several countries, cross-border projects face specific challenges as these projects are by nature more complex, face augmented political risks and necessitate higher level of coordination. To support countries in financing cross-border projects, the paper studies these challenges in detail. It also highlights the policy actions required to achieve enhanced regional connectivity. It stresses, for instance, the importance of supporting intergovernmental platforms where international networks can be planned, regulatory hurdles tackled and financing arrangements structured. Developing guidelines for cross-border projects would also help countries in their efforts to enhance regional connectivity. The paper concludes by recognizing the potential of PPP for these projects, though it acknowledges that supportive policy actions from participating governments will be required for their success as well as a strong high-level political backing. |
| Keywords: | public-private partnership (PPP), infrastructure development, regional connectivity, Asia and the Pacific |
| JEL: | H54 R42 O16 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:unt:wpmpdd:wp/18/05&r=all |
| By: | Ahrens, Steffen (TU Berlin); Bosch-Rosa, Ciril (TU Berlin) |
| Abstract: | One of the reasons for the recent crisis is that financial institutions took \"too much risk\" (Brunnermeier, 2009; Taylor et al., 2010). Why were these institutions taking so much risk is an open question. A recent strand in the literature points towards the \"cognitive dissonance\" of investors who, because of the limited liability of their investments, had a distorted view of riskiness (e.g., Barberis (2013); Benabou (2015)). In a series of laboratory experiments we show how limited liability does not affect the beliefs of investors, but does increase their willing exposure to risk. This results points to a simple explanation for the over-investment of banks and hedge-funds: When incentives are not aligned, investors take advantage of the moral hazard opportunities. |
| Keywords: | moral hazard; cognitive dissonance; behavioral finance; |
| JEL: | C91 D84 G11 |
| Date: | 2019–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:162&r=all |