scholarly journals Pass-Through of Emissions Costs in Electricity Markets

2014 ◽  
Vol 104 (9) ◽  
pp. 2872-2899 ◽  
Author(s):  
Natalia Fabra ◽  
Mar Reguant
Keyword(s):  
Electricity Markets ◽  
Price Adjustment ◽  
Reduced Form ◽  
Electricity Prices ◽  
Inelastic Demand ◽  
Level Data ◽  
Micro Level ◽  
Optimal Bidding ◽  
Pass Through ◽  
The Cost

We measure the pass-through of emissions costs to electricity prices. We perform both reduced-form and structural estimations based on optimal bidding in this market. Using rich micro-level data, we estimate the channels affecting pass-through in a flexible manner, with minimal functional form assumptions. Contrary to many studies in the general pass-through literature, we find that emissions costs are almost fully passed through to electricity prices. Since electricity is traded through high-frequency auctions for highly inelastic demand, firms have weak incentives to adjust markups after the cost shock. Furthermore, the costs of price adjustment are small. (JEL D44, L11, L94, L98, Q52, Q54)

Econometric Approaches

2021 ◽  
pp. 177-190
Author(s):  
Elvira Silva ◽  
Spiro E. Stefanou ◽  
Alfons Oude Lansink
Keyword(s):  
Reduced Form ◽  
Productivity Change ◽  
Productivity Measurement ◽  
Data Set ◽  
Level Data ◽  
Cost Inefficiency ◽  
Micro Level ◽  
Primal And Dual ◽  
The Cost ◽  
Efficiency And Productivity

Econometric approaches provide another avenue to implementing the frameworks and concepts of dynamic efficiency and productivity measurement. This chapter addresses both structural and reduced-form econometric approaches to estimating the dynamic directional distance function directly as well as to estimating the cost function that accommodates technical inefficiency. An application to a farm-level panel data set is presented that estimates the decomposition of dynamic cost inefficiency into technical and allocative inefficiency measures presented in Chapter 4 and then determines the components of primal and dual Luenberger total factor productivity change based on the elaboration of these concepts in Chapter 5. In addition to the discussion of empirical issues, this chapter provides an empirical illustration using micro-level data.

scholarly journals Electoral Arrangements and Turnout Variance at the Sub-National Level: Comparative Insights from Three Constituencies in Ghana

2020 ◽  
Vol 8 (2) ◽  
pp. 61
Author(s):  
Fortune Agbele
Keyword(s):  
Voter Turnout ◽  
National Level ◽  
Individual Perceptions ◽  
Level Data ◽  
Micro Level ◽  
The Cost ◽  
Cost Of Voting ◽  
Different Levels

Using micro-level data from three constituencies in Ghana, which are cases of high, average and low turnout respectively, I assess whether voters’ perceptions of the cost of voting (resource and time) can explain such variation in voter turnout. Results suggest that in Ghana, such individual perceptions of the cost associated with voting do not help in explaining variance in voter turnout at the constituency level: Across the different levels of turnout, there is little to no variance in voters’ perceptions. I find that the high positive perceptions of the electoral processes across high, average, and low turnout constituencies are not only due to the activities of the electoral management body but among others, the adjustments by citizens to the process based on their experiences from past elections.

Carbon pass-through rates on spot electricity prices in Australia

2021 ◽  
Vol 96 ◽  
pp. 105178
Author(s):  
Fatemeh Nazifi ◽  
Stefan Trück ◽  
Liangxu Zhu
Keyword(s):  
Electricity Prices ◽  
Pass Through

scholarly journals Electricity Markets during the Liberalization: The Case of a European Union Country

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4317
Author(s):  
Štefan Bojnec ◽  
Alan Križaj
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Renewable Energy Sources ◽  
Primary Energy ◽  
Lessons Learned ◽  
Policy Implications ◽  
Daily Maximum ◽  
Energy Prices ◽  
Electricity Prices ◽  
Electricity Power

This paper analyzes electricity markets in Slovenia during the specific period of market deregulation and price liberalization. The drivers of electricity prices and electricity consumption are investigated. The Slovenian electricity markets are analyzed in relation with the European Energy Exchange (EEX) market. Associations between electricity prices on the one hand, and primary energy prices, variation in air temperature, daily maximum electricity power, and cross-border grid prices on the other hand, are analyzed separately for industrial and household consumers. Monthly data are used in a regression analysis during the period of Slovenia’s electricity market deregulation and price liberalization. Empirical results show that electricity prices achieved in the EEX market were significantly associated with primary energy prices. In Slovenia, the prices for daily maximum electricity power were significantly associated with electricity prices achieved on the EEX market. The increases in electricity prices for households, however, cannot be explained with developments in electricity prices on the EEX market. As the period analyzed is the stage of market deregulation and price liberalization, this can have important policy implications for the countries that still have regulated and monopolized electricity markets. Opening the electricity markets is expected to increase competition and reduce pressures for electricity price increases. However, the experiences and lessons learned among the countries following market deregulation and price liberalization are mixed. For industry, electricity prices affect cost competitiveness, while for households, electricity prices, through expenses, affect their welfare. A competitive and efficient electricity market should balance between suppliers’ and consumers’ market interests. With greening the energy markets and the development of the CO2 emission trading market, it is also important to encourage use of renewable energy sources.

scholarly journals Model Predictive Control Strategies to Activate the Energy Flexibility for Zones with Hydronic Radiant Systems

Energies ◽  
2021 ◽  
Vol 14 (4) ◽  
pp. 1195
Author(s):  
Ali Saberi Derakhtenjani ◽  
Andreas K. Athienitis
Keyword(s):  
Control Strategies ◽  
High Price ◽  
Electricity Prices ◽  
Peak Demand ◽  
Heating Systems ◽  
Electrical Grid ◽  
Demand Reduction ◽  
The Cost ◽  
Floor System ◽  
Radiant Floor Heating

This paper presents control strategies to activate energy flexibility for zones with radiant heating systems in response to changes in electricity prices. The focus is on zones with radiant floor heating systems for which the hydronic pipes are located deep in the concrete and, therefore, there is a significant thermal lag. A perimeter zone test-room equipped with a hydronic radiant floor system in an environmental chamber is used as a case study. A low order thermal network model for the perimeter zone, validated with experimental measurements, is utilized to study various control strategies in response to changes in the electrical grid price signal, including short term (nearly reactive) changes of the order of 10–15 min notice. An index is utilized to quantify the building energy flexibility with the focus on peak demand reduction for specific periods of time when the electricity prices are higher than usual. It is shown that the developed control strategies can aid greatly in enhancing the zone energy flexibility and minimizing the cost of electricity and up to 100% reduction in peak power demand and energy consumption is attained during the high-price and peak-demand periods, while maintaining acceptable comfort conditions.

THE FOREIGN BANK EFFECT ON VALUE CREATION IN COMMERCIAL BANKS INCORPORATED IN THAILAND

2008 ◽  
Vol 53 (02) ◽  
pp. 215-244
Author(s):  
CHANTAL HERBERHOLZ
Keyword(s):  
Performance Measures ◽  
Commercial Banks ◽  
Economic Value ◽  
Value Added ◽  
Foreign Bank ◽  
Level Data ◽  
Beneficial Impact ◽  
Domestic Banks ◽  
The Cost ◽  
Traditional Performance

Using quarterly bank-level data over the period 1997–2005, this paper examines the effect of foreign bank presence on commercial banks incorporated in Thailand, using traditional and value-based performance measures as indicators of the degree of competition and proxies for the efficiency in the provision of banking services. The findings suggest that foreign bank presence is not only beneficial in terms of traditional performance measures, but also in terms of economic profit. The results with respect to economic value added and cash value added, however, cast some doubt over the presumed benefits of opening up, underlining the importance of using a proxy that considers the cost of equity and departs from standard accounting principles. Furthermore, the results indicate that foreign entry through the acquisition of domestic banks appears to have a stronger and more beneficial impact on locally incorporated banks than through the establishment of branches, with majority ownership by a foreign blockholder being of importance.

The Mitigation of the French Nuclear Option: New Industrial Realism and Technical Democracy

2002 ◽  
Vol 13 (2) ◽  
pp. 263-279 ◽  
Author(s):  
Dominique Finon
Keyword(s):  
Waste Management ◽  
Electricity Markets ◽  
Social Preferences ◽  
Public Inquiry ◽  
The Future ◽  
Parliamentary Committee ◽  
Set Up ◽  
The Stability ◽  
The Cost ◽  
Phase Out

Nuclear phase-out policies and the European obligation to liberalise electricity markets could put the French nuclear option dramatically at risk by influencing social preferences or by constraining power producers' investment choices in the future. So far, the particular institutional set-up which has allowed the efficient build-up and operation of several series of standardised reactors preserves the stability of the main elements of the option. However, important adaptations to the evolving industrial and political environment occur and contribute to changing the option. Some institutional changes (such as local public inquiry, creation of a Parliamentary committee, independence of safety authorities) and divergence between industrial interests already allow debates on internal options such as reprocessing, type of waste management deposits, ordering of an advanced PWR. These changes improve the cost transparency, even if internalisation of nuclear externalities (cost of insurance, provisions for waste management) is still incomplete. However, when effective, this internalisation would not affect definitively the competitive position of the nuclear production because of the parallel internalisation of CO2 externalities from fossil fuel power generation in the official rationale. Consequently the real issue for the future of the nuclear option in France remains the preservation of social acceptability in the perception of nuclear risks.

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