Imperfect information and inattention to energy costs are important potential motivations for energy efficiency standards and subsidies. We evaluate these motivations in the lightbulb market using a theoretical model and two randomized experiments. We derive welfare effects as functions of reduced-form sufficient statistics capturing economic and psychological parameters, which we estimate usin...

− A theoretical framework is developed for decomposing partial factor productivity and measuring technical inefficiency when the underlying technology is characterized by factor non-substitution. With Farrell’s (1957) radial index of technical inefficiency being inappropriate in this case, Russell’s (1985; 1987) non-radial indices are adapted to measure technical inefficiency in a Leontief mode...

We examine how transmission congestion alters the environmental benefits provided by renewable generation. Using hourly data from Texas and midcontinent electricity markets, we find that relaxing constraints between wind-rich areas demand centers of respective markets conservatively increases nonmarket value wind 30 percent for 17 markets. Much this increase in arises a redistribution where air...

We compare contrarian to conformist advice, a expert being one whose preference bias is against the decision-maker’s prior optimal decision. Optimality of an depends on characteristics information and learning. If either fully informed or fine can be acquired cheaply, then for symmetric distributions F state, (contrarian) superior if single peaked (bimodal). only coarse acquired, acquires more ...

L’article analyse la gestion optimale des barrages hydroelectriques quand les apports naturels en eau suivent cycles previsibles. La regle de Hotelling qui determine trajectoire valeur l’eau stock doit s’appliquer facon cyclique compte tenu ruptures saisonnieres et besoins a satisfaire. Quand un est constitue, si contraintes capacite du reservoir ne sont pas liantes, il possible proceder arbitr...

We estimate changes in market structure in the US electric power industry during the last three decades using two independent approaches. First, we estimate an industry-wide conjectural-variations parameter. We find that industry concentration was generally rising during the 1970s, but has been gradually and consistently falling since the early 1980s. To check the robustness of these results, w...

The degree of liberalization in OECD electricity markets varies considerably across countries. Commonly explained by diverging economic performances, corruption levels or government ideologies, this paper suggest another potential reason for cross-national differences in market reforms: given the high financial dependence of regulatory actors on public funding both in the past and nowadays, we ...

This article explores the scale and behaviour of abnormal equity returns for 12 regional electricity companies (RECs) in the UK. Using the Capital Asset Pricing Model (CAPM) and the Kalman Filter, we estimate time variation in abnormal returns (alpha) and in systematic risk (beta) coefficients. Substantial time variation in both returns and risk is demonstrated, with strong evidence of regulato...

Estimation of Productivity in Korean Electric Power Plants: A Semiparametric Smooth Coefficient Model This paper analyzes the impact of load factor, facility and generator types on the productivity of Korean electric power plants. In order to capture important differences in the effect of load policy on power output, we use a semiparametric smooth coefficient (SPSC) model that allows us to mode...