Article
Economics
Fan Wang, Danni Xu, Xiaopo Zhuo, Chao Zhang, Yaoqi Liu
Summary: This study explores the optimal strategy for governments to provide subsidies in the vaccine market through a game-theoretic model, suggesting that governments should publicize the benefits of vaccines to raise consumer awareness levels and increase vaccination rates. It is optimal for the government to subsidize consumers rather than vaccine manufacturers, and to provide subsidies for both informed and uninformed consumers, regardless of vaccine price settings.
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
(2022)
Article
Economics
Roland O. Ofori
Summary: In addition to not benefiting the poor significantly, fuel subsidies result in overconsumption, market inefficiencies, and negative environmental and social effects. This study calculated the economic cost or deadweight loss (DWL) caused by gasoline and diesel subsidies in Ghana. The estimated DWL ranged from GHS 2.03 to 8.58 million per year using a simple Harberger formula, but considering cross-price effects reduced the estimates to GHS 1.53 to 7.55 million per year. However, due to the low price elasticity of fuel demand, the DWL created by every GHS 1 million spent on subsidies only represents between 0.5% and 2% of subsidy expenditures. These findings suggest that fuel subsidy reforms should focus more on addressing issues like ineffective targeting and negative externalities, rather than solely economic inefficiencies.
SOCIO-ECONOMIC PLANNING SCIENCES
(2023)
Article
Business
Pu-yan Nie, Chan Wang, Hong-xing Wen
Summary: The article discusses the impact of resource constraints on horizontal mergers, emphasizing the importance of cautiousness in industries with scarce resources. Additionally, it highlights the higher threshold values for mergers aimed at maximizing consumer surplus under resource constraints.
JOURNAL OF RETAILING AND CONSUMER SERVICES
(2021)
Article
Energy & Fuels
Zheng Liu, Wenzhuo Sun, Bin Hu, Chunjia Han, Petros Ieromonachou, Yuanjun Zhao, Jiazhuo Zheng
Summary: With China's proposal of carbon peak and carbon neutral strategy, the increasing awareness of low carbon production among consumers, and the government's introduction of carbon trading mechanism and low carbon consumption subsidy policies, enterprises are facing good opportunities for development. However, the reasonable formulation of low carbon policies by the government and the implementation of optimal low carbon production decisions by enterprises are still key issues in China's low carbon transition development.
Article
Economics
M. Chatib Basri, Mayara Felix, Rema Hanna, Benjamin A. Olken
Summary: The study finds that improving tax administration can significantly increase tax revenue, with more potential benefits compared to raising tax rates. The case of Indonesia demonstrates that increasing staff-to-taxpayer ratios has the potential to double tax revenue.
AMERICAN ECONOMIC REVIEW
(2021)
Article
Green & Sustainable Science & Technology
Qingfeng Meng, Mengwan Li, Wenyao Liu, Zhen Li, Jiao Zhang
Summary: This paper explores collaborative pricing policies in dual-channel green supply chain and finds that government subsidies can promote sales of green products, benefit manufacturers, and the impact on retailer profits depends on the amount of subsidies. Higher consumer green preference or lower offline channel preference leads to greater demand for green products.
SUSTAINABLE PRODUCTION AND CONSUMPTION
(2021)
Article
Economics
Yumin Li, Yan Jiang, Changgui Dong
Summary: Cross-subsidies in China's electricity market have been in place for decades, with residential electricity prices significantly lower than industrial prices. This study proposes a theoretical model to explain the reverse Ramsey pricing in the Chinese power sector for social equity reasons. Based on calibration with observed data, the research finds that the reverse Ramsey pricing could be optimal if the residential sector is given a higher weight than the industrial sector. Social welfare analyses conducted under different scenarios provide guidance for policymakers in future electricity market reforms.
ECONOMIC ANALYSIS AND POLICY
(2023)
Article
Telecommunications
Miao Li, Yixue Hao, Yin Zhang, Min Chen
Summary: This paper proposes a two-stage Stackelberg game with a non-uniform pricing scheme to solve the interference problem between macrocells and femtocells. By charging for interference and allocating transmission power reasonably, this scheme can improve the overall system's total benefit.
IEEE COMMUNICATIONS LETTERS
(2022)
Article
Economics
Sylwia Bialek, Burcin uenel
Summary: This paper examines the impact of capacity market reforms implemented by three U.S. grid operators, namely PJM, ISO-NE, and NYISO, in response to state-level subsidies for emissions-free electricity generation. The study finds that subsidies, even when combined with energy consumption taxes, generally do not lead to optimal outcomes. However, there is a range of subsidy rates that can enhance welfare when greenhouse gas externalities are taken into account. The evaluation of capacity market reforms suggests that they are misguided and likely to decrease welfare.
Article
Environmental Sciences
Jeff Guo, Rongbing Huang
Summary: This paper compares the social welfare effects of carbon taxes and subsidies, indicating that as the environmental damage of high carbon products increases, the policy instrument should shift from subsidies to carbon taxes. Additionally, it is shown that when the government intervenes with pollution control policies, Bertrand competition does not always result in higher social welfare than Cournot competition.
ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH
(2022)
Article
Business
Richard Staelin, Joel E. Urbany, Donald Ngwe
Summary: Fifty years ago, the Federal Trade Commission stopped enforcing fictitious reference pricing guidelines, but this practice has continued to proliferate. The authors develop a model explaining why fictitious reference pricing has spread instead of being eliminated by competition. They propose that disclosing true normal prices may be the only solution to influence both consumers and firms.
JOURNAL OF MARKETING
(2023)
Article
Engineering, Manufacturing
Xuying Zhao, Hong Guo, Gangshu Cai, Subhajyoti Bandyopadhyay
Summary: Research shows that service providers' contract strategies are determined by expectation-reality discrepancy (ERD) rather than true service valuations. Providers with higher ERDs are more likely to enforce contracts, intensifying competition in the market. Switching costs can help consumers avoid making wrong switching decisions due to misleading ERDs.
PRODUCTION AND OPERATIONS MANAGEMENT
(2021)
Article
Economics
Jakub P. Hlavka, Jeffrey C. Yu, Dana P. Goldman, Darius N. Lakdawalla
Summary: Pharmaceuticals are conventionally priced uniformly, but their effectiveness varies greatly for different disease indications. With the launch of more high-cost therapies, there is a growing demand for alternative payment models (APMs) in advanced markets. Market inefficiencies create the need for different value-based pricing structures to address obstacles to uniform pricing.
EUROPEAN JOURNAL OF HEALTH ECONOMICS
(2021)
Article
Economics
Kunpeng Li, Lan Wang
Summary: Electric vehicles (EVs) are an important solution to climate change due to their reduced carbon emissions. Purchase subsidies have been effective in overcoming cost barriers. This paper analyzes the impact of EV anxiety and environmental benefits on subsidy and pricing decisions, and identifies the optimal subsidy under different market conditions. The study also explores how environmental benefits and EV anxiety affect subsidy decisions.
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
(2023)
Article
Economics
Winston W. Chang, Tai-Liang Chen
Summary: This paper examines the optimal specific tax/subsidy policy for a monopoly under multi-tier pricing and reveals the impact of increasing specific taxes on different output levels under different pricing schemes.
INTERNATIONAL JOURNAL OF ECONOMIC THEORY
(2022)
Article
Environmental Sciences
Alishba Jehangir, Maleeha Imtiaz, Verda Salman
Summary: The excessive consumption of single-use plastic bags has led to plastic pollution, which has negative consequences for human health and the environment. To control plastic pollution in Islamabad, the government of Pakistan implemented a ban on single-use plastic bags. The survey results show that awareness, education, and availability of alternatives play a crucial role in supporting the ban.
JOURNAL OF MATERIAL CYCLES AND WASTE MANAGEMENT
(2022)
Article
Economics
Marie-Louise Arlt, David Chassin, Claudio Rivetta, James Sweeney
Summary: This paper examines the impact of real-time pricing and load automation on residential distribution systems. The study finds that implementing real-time pricing can result in an aggregate welfare gain of 39 USD per customer and year. However, it also notes that RTP and load automation may significantly increase peak system load. Introducing a market-based demand management system can further enhance welfare gains and reduce grid investment.
Article
Economics
Javier Jorquera-Copier, Alvaro Lorca, Enzo Sauma, Stefan Lorenczik, Matias Negrete-Pincetic
Summary: As countries update their climate ambitions, low-carbon hydrogen production and use present opportunities for emissions reductions and economic development. A case study for Chile shows that integrating hydrogen and electricity networks can lower system costs and enhance renewable integration, but policy support is needed to address concerns related to water and land use.
Article
Economics
Dawit Guta, Hisham Zerriffi, Jill Baumgartner, Abhishek Jain, Sunil Mani, Darby Jack, Ellison Carter, Guofeng Shen, Jennifer Orgill-Meyer, Joshua Rosenthal, Katherine Dickinson, Rob Bailis, Yuta Masuda
Summary: Household solid fuel use is detrimental to health and the environment. The Indian government's PMUY subsidy has successfully promoted the adoption of LPG by millions of households. However, there is limited understanding of the decision-making process to reduce solid fuel use after transitioning to cleaner fuels. This study found that factors such as household wealth, social status, education level, and the prevalence of LPG use in the village are positively associated with LPG consumption and the discontinuation of solid fuel use. On the other hand, factors such as distance to LPG refill delivery, household size, and the PMUY subsidy are negatively associated with the share of LPG use.
Article
Economics
Nicolas Morell-Dameto, Jose Pablo Chaves-Avila, Tomas Gomez San Roman, Pablo Duenas-Martinez, Tim Schittekatte
Summary: This paper assesses the performance of differently implemented forward-looking network tariff designs and proposes an innovative coordination mechanism to increase predictability in a future with many flexible customers. The study reveals that if large shares of customers synchronize their responses to highly time-varying and locational-specific network charges, it can lead to unexpected reinforcements.
Article
Economics
Alexandra Gritz, Guntram Wolff
Summary: Russia's weaponization of gas supplies shook the energy security of Central and Eastern Europe in 2022. The region responded by increasing alternative energy supplies and developing new gas supply routes. Renewable energy, nuclear energy, and hydrogen play important roles in the long-term. Mitigating the impact of this shock requires the EU to prioritize the integrity of its energy market.
Article
Economics
Jaroslaw Kantorowicz, Marion Collewet, Matthew DiGiuseppe, Hendrik Vrijburg
Summary: Economic costs are a major political obstacle to investing in climate change mitigation and adaptation measures. The method of financing plays a crucial role in determining public opposition to government green investments, with debt financing being less opposed than broad-based taxes. This study suggests that credit market tools, such as green bonds and debt for climate swaps, can be politically efficient in increasing support for green financing. Carbon taxes and wealth taxes are found to be the most preferred options.
Article
Economics
Kun Guo, Liyuan Luan, Xiaoli Cai, Dayong Zhang, Qiang Ji
Summary: This paper investigates China's energy trade stability using a survival analysis approach. It finds that the energy trade linkages between China and 153 other countries are complex and unstable, with short periods of trade with many countries. Geopolitically risky regions, such as the Middle East and Africa, have the lowest trade stability. Climate risks have significant effects on energy trade stability. The paper proposes several policy options to improve energy trade stability in China, with special attention to increasing global climate risks.
Article
Economics
Simona Bigerna, Piyush Choudhary, Nikunj Kumar Jain, Silvia Micheli, Paolo Polinori
Summary: This study estimates the willingness to pay of Indian urban consumers for a continuous supply of electricity using contingent valuation method. The findings show that the amount consumers are willing to pay depends on the duration of power outages, with households preferring shorter outages. Income and environmental attitude also positively influence higher willingness to pay. These insights can inform policymakers in designing more reliable and customer-centric energy generation and distribution models.
Article
Economics
Temilade Sesan, Unico Uduka, Lucy Baker, Okechukwu Ugwu, Ewah Eleri, Subhes Bhattacharyya
Summary: This study examines the impact of the regulatory framework on rural electrification and universal energy access goals in Nigeria's mini-grid sector. The findings suggest that while the current framework has fostered sector growth, additional measures are necessary to ensure equitable distribution of access among rural populations.
Article
Economics
Rui Shan, Noah Kittner
Summary: Energy storage is a cornerstone in decarbonization planning as it reduces operational costs and greenhouse gas emissions, while enhancing resilience and renewables integration. However, storage developers in different regions have varying economic and environmental considerations, thereby requiring policy intervention to achieve long-term emission reductions.
Article
Economics
Tung Durmaz, Sevil Acar, Simay Kizilkaya
Summary: This study investigates the phenomenon of strategic capacity withholding in the Turkish electricity market and its relationship with the capacity remuneration mechanism. The empirical results provide strong evidence of strategic capacity withholding and show that the capacity mechanism contributes to the duration of failures. The study offers important insights for policymakers, including the implementation of a random verification mechanism and restructuring of the capacity mechanism in Turkey.
Article
Economics
Tii N. Nchofoung
Summary: The study finds that oil price shocks have a negative impact on Africa's energy transition, particularly in rural areas and net crude oil exporting countries. However, oil price shocks cannot explain the urban-rural differences in clean energy access. Therefore, increasing investment in clean energy and technologies in rural areas is necessary to enhance the resilience of the energy sector to oil price shocks.
Article
Economics
Najia Saqib, Muhammad Usman, Ilhan Ozturk, Arshian Sharif
Summary: This study examines the impact of environmental technologies, financial growth, and energy use on ecological footprint and green growth. Environmental innovation and renewable energy deployment contribute to green growth, while financial expansion and non-renewable energy use have negative effects on the environment. The study also identifies causal relationships between different factors.
Article
Economics
Yessica C. Y. Chung, Noxolo Kunene, Hung-Hao Chang
Summary: The Renewable Energy Certificate (REC) is considered an innovative technology for building a green society. This study investigates the impact of REC purchases on stock return and volume in Taiwan between 2017 and 2021. The findings suggest that REC purchases have a positive effect on stock returns of manufacturing firms but not service firms. The frequency of REC purchases is also an important factor in the relationship between REC purchase and firm value. Additionally, the study reveals that public attention to environmental pollution plays a crucial role in positive stock returns and volume, while ESG disclosure is negatively associated with returns and volume.
Article
Economics
Seife Ayele, Wei Shen, Yacob Mulugetta, Tadesse Kuma Worako
Summary: This paper addresses the challenges of governing energy procurement from a mix of non-hydropower renewable energy sources supplied by independent producers. Building on political economy analysis and five case studies of independent producer projects from Ethiopia, it seeks to understand the root causes of the protracted delays and limited extent of procurement by independent producers. The key contestations lie in managing long term contracts, risk, uncertainty and in developing the institutional and human capacity to transition.