Journals
Magazine:
ECONOMIC JOURNAL
ISSN:
0013-0133
Year:
2022
Vol:
132
N°:
645
Pp:
1684 - 1708
A large body of literature has examined the impact of the horizontal market structure on the tax incidence on consumers. However, the extent to which the vertical market structure affects the tax pass-through-which might be particularly relevant in the presence of the double marginalisation problem-is an unexplored question. Using a confidential dataset of gas station contracts with a major Spanish refiner, in combination with their retail fuel prices and characteristics, we document that the pass-through of a tax on prices is about 38% higher in vertically integrated gas stations than in independent ones. Our estimates allow us to assess the impact on government revenue and emissions under different counterfactual market scenarios.
Magazine:
EMPIRICAL ECONOMICS
ISSN:
0377-7332
Year:
2021
Vol:
61
N°:
1
Pp:
443 - 467
We study a game of spatial competition in prices. In particular, we focus on the linear-city duopoly model to see what we can learn about the distribution of consumers, which is not required to be uniform-as in the original Hotelling model. Using variation in firms' prices and costs, we identify points of the distribution of consumers. Based on these points, we estimate the spatial distribution of consumers along the linear city. We apply our methodology to a dataset of prices of two gas stations on a straight highway. By estimating the distribution of consumers, we are able to find the optimal location of an entrant gas station. Using our estimated distribution of consumers and the entrant's optimal point, we simulate welfare gains under counterfactual locations of an entrant.
Magazine:
ENERGY POLICY
ISSN:
0301-4215
Year:
2021
Vol:
149
Ppgs:
112057
Resolving the resource adequacy problem has been usually entrusted to the imposition of some kind of long-term capacity requirements or to forward markets. The Operating Reserve Demand Curve (ORDC), which is linked to short-term market conditions and does not require central planning, has been presented as an alternative system with which to ensure long-term resource adequacy in the market. Using hourly data from the Texas ERCOT market between January 2015 and February 2019, we empirically show that ORDC prices are significantly negatively affected by wind generation. We find that, if wind generation is relatively low, a 1% increase in wind generation decreases the ORDC price by around 0.15¿0.1%. This fact may preclude the ORDC from providing long-term price signals and price stability to generators. Moreover, we also find that if wind generation is greater than 9000 MW, the ORDC price is expected to be zero, which may further disincentive to increase generation capacity - especially dispatchable capacity that may be needed as a backup if the wind is not blowing.
Magazine:
ENERGY ECONOMICS
ISSN:
0140-9883
Year:
2021
Vol:
94
Ppgs:
105067
A number of countries in Sub-Saharan Africa have recently deployed billions of dollars to improve their electricity infrastructure. However, aggregate data shows that the relative number of households with an electricity connection at home has barely increased. In this paper we study the role of blackouts to partially explain why there have been relatively few additional households with electricity access despite the increase in electrification expenditure. Using geo-localized survey data from Kenya, we find that households that live in neighbourhoods in which power outages are relatively more frequent are (at least) about 6¿9% less likely to have electricity at home. We also find that households that have electricity access but which experience frequent power outages are also less likely to purchase electrical appliances.
Magazine:
ECONOMICS LETTERS
ISSN:
0165-1765
Year:
2019
Vol:
177
Pgs:
43 - 46
We formally show that lump-sum participation fees and per-interaction fees charged by a monopoly platform in a two-sided market are not interchangeable in the presence of price distortions, such as ad valorem taxes. (C) 2019 Elsevier B.V. All rights reserved.
Magazine:
JOURNAL OF PUBLIC ECONOMICS
ISSN:
0047-2727
Year:
2019
Vol:
177
Pgs:
104040
Does the tax pass-through effect go beyond borders? We use firm-level prices to analyze the incidence of a tax change on firms on different sides of a border in an industry with differentiated firms selling a homogeneous product. By using a difference-in-differences strategy, we find that firms' tax responses are consistent with predicted firms' best-responses. We show that the effect of the tax change was even greater after a politician publicly asked his fellow citizens to avoid crossing the border to buy. Besides suggesting that politicians should be more prudent, these findings highlight the importance of fiscal harmonization in areas without economic borders.
Magazine:
ENERGY ECONOMICS
ISSN:
0140-9883
Year:
2018
Vol:
75
Pgs.:
410 - 422
In his seminal paper, Nunn (2007) finds that countries with good contract enforcement have a comparative advantage and, therefore, specialise in exporting goods for which relationship-specific investments are most important. We argue that this result cannot be extrapolated to all industries: there is substantial heterogeneity regarding the effect of contract enforcement on exports. In particular, we empirically demonstrate that there is a disconnection between judicial quality and exporting in relationship-specific natural resource related industries. Due to the lack of input factor mobility, for such industries, the quality of contract enforcement cannot explain the pattern of trade, but rather other factors that are widely discussed in the literature. We discuss some relevant implications of this disconnection between judicial quality and relationship-specific industries in terms of the natural resource curse and the impact of natural resources trade on economic development.
Magazine:
JOURNAL OF TRANSPORT ECONOMICS AND POLICY
ISSN:
0022-5258
Year:
2017
Vol:
51
N°:
3
Pp:
157 - 172
Using a data set of daily prices for four types of fuels from 38 gas stations located in Northern Spain we perform a differences-in-differences analysis to explore the impact of a gas tax reduction on prices at the pump. We find that about 60¿65 per cent of the tax cut was passed on to regular unleaded gasoline retail prices. We also find evidence of full shifting of the tax cut to regular diesel and premium fuel prices in the week of the tax reform and one week after. However, this impact disappears two weeks after the adoption of the tax reform.
Magazine:
ENERGY ECONOMICS
ISSN:
0140-9883
Year:
2017
Vol:
64
Pgs:
272 - 285
The aim of this paper is to analyze the welfare consequences of introducing capacity compensation payments in restructured and liberalized electricity markets. For that purpose, we set up a two-stage framework in which two kinds of electricity generators, peak load and base load generators, choose their capacity investment levels first and then compete on the basis of bids in a centralized market to sell electricity to consumers. We use data from the Texas ERCOT to evaluate consumers' welfare. We find that the introduction of capacity payments has two countervailing effects. On the one hand, it increases the wholesale electricity price. On the other hand, it reduces price volatility and increases the reliability of the system. We find that capacity payments are more beneficial for consumers in a perfectly competitive market than in the presence of certain degree of market power.
Magazine:
ENERGY POLICY
ISSN:
0301-4215
Year:
2016
Vol:
96
Pgs.:
119 -130
Using monthly data from the Spanish gasoline retail market we explore asymmetries in consumers¿ behavioral responses to changes in gasoline prices and taxes. In particular, we are interested in investigating whether an increase in gasoline taxes has a more negative impact on the demand than a ¿similar in magnitude¿ increase in the ¿pre-tax¿ price of gasoline for different fuel types. We estimate fuel consumers¿ responses using a rich set of robust panel data models considering potential dynamic effects and endogeneity problems. We find evidence to confirm the existence of asymmetric responses for the demand of unleaded fuels and agricultural diesel fuel. However we cannot support this statement for the regular diesel case: for this fuel both the tax-exclusive price and the tax elasticities are roughly the same. This result agrees with the fact that ¿diesel drivers¿ tend to be better informed about changes in both fuel prices and taxes. Some implications in terms of fiscal policy and pollution and climate change policy are also discussed.
Magazine:
THE ELECTRICITY JOURNAL
ISSN:
1040-6190
Year:
2015
Vol:
28
N°:
9
Pp:
113 - 119
Though it has been shown that consumers pay higher electricity prices in areas with capacity markets, those markets also serve as an insurance mechanism in incentivizing capacity additions and thereby reducing the probability of extreme events. Critics argue that the lack of a capacity mechanism in Texas ERCOT has resulted in a dangerously shrinking capacity reserve margin.
Magazine:
INTERNATIONAL JOURNAL OF APPLIED BEHAVIORAL ECONOMICS
ISSN:
2160-9802
Year:
2015
Vol:
4
N°:
3
Pgs:
1 - 21
Incentives for car purchase have been a common concern for politicians in Spain. In this paper, the author wants to focus on two recent policies: Plan VIVE and Plan 2000e, introduced in 2008 and 2009 respectively. The data on car sales in Spain show that after the introduction of the Plan 2000e there was a significant increase in the number of vehicles sold in Spain. But that seems quite contradictory with the features of these plans: if one assumes an average consumer, who borrows money at a certain interest and that repays it in several years, it can be seen that actually it is possible to save more money using the Plan VIVE rather than the Plan 2000e. Provided is evidence to support that the key to understand this puzzle is time preference: car purchase, as many other durable goods, has a very strong intertemporal discount factor. The hypothesis is demonstrated by the fact that, at least in Spain, people prefer an initial lump-sum payment in order to purchase a car rather than a financial program with better conditions.
Magazine:
JOURNAL OF INDUSTRY, COMPETITION AND TRADE
ISSN:
1566-1679
Year:
2015
Vol:
15
N°:
3
Pp:
239 - 256
A basic framework is provided to explain the integration process experienced by oligopolistic markets serving a homogeneous good in different countries. Over the past few decades, such processes have been observed, for instance, in some European markets ¿ in particular, in the energy sector. The idiosyncratic element here is the introduction of an exogenously given antitrust commission that supervises competition in the market and has the authority to fine firms for anticompetitive behavior. We model the unification decision as a simple cooperative non-transferable utility game. We find that the creation of an antitrust commission plays a major role in providing the necessary incentives for market unification. In particular, the commission is able to induce unification of all markets via appropriate choice of antitrust policy. This stands in stark contrast to the benchmark scenario in which the antitrust commission is absent ¿ here, market unification never occurs. We propose the Iberian Electricity Market (MIBEL) as a case study.
Magazine:
NEW TRENDS
ISSN:
1139-8124
Year:
2012
N°:
85
Págs:
75 - 92
National and Regional
degree scroll:
financial aid social, incentives and household behavior
Code from transcript:
PID2020-120589RA-I00
researcher principal:
Raul Bajo Buenestado
Funder:
STATE RESEARCH AGENCY
Call for proposals:
2020 AEI PROJECTS research and development+i (includes Generation of knowledge and Challenges research)
Start date:
01/09/2021
End date:
31/08/2024
Amount granted:
29.403,00€
Other funds:
-
degree scroll:
Oil and commodity prices, economic uncertainty and their interaction with economic and financial variables. Policy implications
Code from transcript:
ECO2017-83183-P
Funder:
MINISTRY OF SCIENCE AND INNOVATION
Call for proposals:
2017 MINECO RESEARCH CHALLENGES. PROJECTS OF research and development+i
Start date:
01/01/2018
End date:
30/09/2021
Amount awarded:
29.040,00€
Other funds:
ERDF funds
Others (PIUNA, foundations, contracts...)
degree scroll:
Restructured Electricity Markets: skill and regulation with environmental and development
Funder:
RAMON ARECES FOUNDATION
Solicitation:
2017 R ARECES
Start date:
27/10/2017
End date:
31/03/2022
Amount granted:
36.000,00€
degree scroll:
Optimal consumption tax structure : a theoretical study, assessment empirical , and design of policies with implications on revenue and environmental externalities.
Code from transcript:
1.1.900012
researcher principal:
Miguel Angel Borrella Mas
Funder:
RAMON ARECES FOUNDATION
Call:
2020 FD RAMÓN ARECES Social Sciences
Start date:
23/10/2020
End date:
22/10/2023
Amount granted:
36.000,00€
