Similar Search Results

When Does Regulation Distort Costs? Lessons from Fuel Procurement in U.S. Electricity Generation

Cicala, Steve - 2014

This paper evaluates changes in fuel procurement practices by coal- and gas-fired power plants in the United States following state-level legislation that ended cost-of-service regulation of electricity generation. I find that deregulated plants substantially reduce the price paid for coal (but...

Persistent link: https://www.econbiz.de/10013054040

Price Risk, Production Flexibility, and Liquidity Management : Evidence from Electricity Generating Firms

Lin, Chen - 2017

Production inflexibility together with product price uncertainty creates price risk, which is a potentially important … factor for firms' liquidity management. One industry for which price risk can be measured is the electricity producing … the risk firms' face. Price risk affects cash holdings most in financially constrained firms, and in firms that cannot …

Persistent link: https://www.econbiz.de/10012955945

Convective Risk Flows in Commodity Futures Markets

Cheng, Ing-Haw - 2012

the VIX causing the risk to flow to commercial hedgers. By exploiting a cross-section of traders, we provide micro …-level evidence for a convective flow of risk from distressed financial traders to the ultimate producers of commodities in the real …

Persistent link: https://www.econbiz.de/10013108607

Sacred Cars? Optimal Regulation of Stationary and Non-Stationary Pollution Sources

Fowlie, Meredith - 2014

For political and practical reasons, environmental regulations sometimes treat point source polluters, such as power plants, differently from mobile source polluters, such as vehicles. This paper measures the extent of this regulatory asymmetry in the case of nitrogen oxides (NOx), the criteria...

Persistent link: https://www.econbiz.de/10012751115

Uncertainty, Welfare Cost, and the 'Adaptability' of U.S. Corporate Taxes

Fullerton, Don; Lyon, Andrew B.; Rosen, Richard Joseph - 2021

Alternative corporate tax systems differ in their ability to adapt to changes in the rate of inflation. Absent complete indexing of depreciation allowances, a tax system may use the expected inflation rate to set accelerated depreciation allowances in a way that minimizes the welfare loss from...

Persistent link: https://www.econbiz.de/10013227004

Robust Monetary Policy Under Model Uncertainty in a Small Model of the U.S. Economy

Onatski, Alexei; Stock, James H. - 2021

This paper examines monetary policy in Rudebusch and Svensson's (1999) two equation macroeconomic model when the policymaker recognizes that the model is an approximation and is uncertain about the quality of that approximation. It is argued that the minimax approach of robust control provides a...

Persistent link: https://www.econbiz.de/10013310544

Customer Risk from Real-Time Retail Electricity Pricing : Bill Volatility and Hedgability

Borenstein, Severin - 2010

that they would be exposed to risk from fluctuations in their electricity cost. The concern seems to be that a customer … larger than it had budgeted for. I analyze the magnitude of this risk, using demand data from 1142 large industrial customers …, and then ask how much of this risk can be eliminated through various straightforward financial instruments. I find that …

Persistent link: https://www.econbiz.de/10012760642

Efficient Contracting and Market Power : Evidence from the U.S. Natural Gas Industry

Hubbard, R. Glenn; Weiner, Robert J. - 2021

It is well recognized by economists that long-term contracting under an array of price and non-price provisions may be an efficient response to small-numbers bargaining problems. Empirical work to distinguish such issues from predictions of models of market power and bargaining has been sparse,...

Persistent link: https://www.econbiz.de/10013217942

The Allocative Cost of Price Ceilings in the U.S. Residential Market for Natural Gas

Davis, Lucas W. - 2008

A direct consequence of imposing a ceiling on the price of a good for which secondary markets do not exist, is that, when there is excess demand, the good will not be allocated to the buyers who value it the most. The resulting allocative cost has been discussed in the literature as a...

Persistent link: https://www.econbiz.de/10012771807

The Efficiency and Distributional Effects of Alternative Residential Electricity Rate Designs

Burger, Scott - 2019

Electricity tariffs typically charge residential users a volumetric rate that covers the bulk of energy, transmission, and distribution costs. The resulting prices, charged per unit of electricity consumed, do not reflect marginal costs and vary little across time and space. The emergence of...

Persistent link: https://www.econbiz.de/10012892556