Subsidies and cross-subsidies in the energy sector are common throughout Eastern Europe and Central Asia. In Belarus, revenues from an industrial tariff on electricity are used to cross-subsidize heating for households. Input-output (IO) data and a household consumption survey are used to...

This paper analyzes the dynamic effects of rate-of-return regulation on firms’ emissions compliance behavior when the price of emissions permits is uncertain. The paper shows that uncertainty regarding the price of permits would motivate a regulated firm to adopt a more self-sufficient...

A rare disease is any disease that affects a small percentage of the population. The extremely low incidence rate of rare diseases makes it particularly difficult to recognize and diagnose them. A major challenge in the rare disease market is how to target physicians who are potentially involved...

In this paper we study a LIBOR market model with a volatility multiplier, which follows a square-root process. This model captures downward volatility skews through using negative correlations between forward rates and the multiplier. Approximate pricing formula is developed for swaptions, and...

Power shortages present a significant challenge to manufacturers, who rely on power as a key input to production. In Pakistan, power shortages are commonplace, but empirical evidence on the impact of shortages is still lacking. Using a survey of 4,500 manufacturing firms for the year 2010-11,...

In many parts of the developing world, access to electricity is uneven and inconsistent, characterized by frequent and long hours of power outages. Many countries now engage in systematic load shedding because of persistent power shortages. When and where electricity is provided can have...

Achieving universal access to electricity is one of the most important energy policy goals set by governments in the developing world. The recent empirical literature, however, paints a mixed picture about the economic viability of rural electrification. Although many studies find substantial...

This paper examines the causal relationship between energy efficiency and economic growth based on panel data for 56 high- and middle-income countries from 1978 to 2012. Using a panel vector autoregression approach, the study finds evidence of a long-run Granger causality from economic growth to...

This paper examines the effect of energy costs on industry export competitiveness. Most studies in the literature use direct energy consumption (energy consumption at the final stage of production) and domestic energy prices to compute energy costs faced by domestic industries. Using...