Browsing Working Papers by Title
Now showing items 170-189 of 334
-
The macroeconomic effects of oil price shocks : why are the 2000s so different from the 1920s?
(MIT Center for Energy and Environmental Policy Research, 2007)We characterize the macroeconomic performance of a set of industrialized economies in the aftermath of the oil price shocks of the 1970s and of the last decade, focusing on the differences across episodes. We examine four ... -
Managing a portfolio of real options : sequential exploration of dependent prospects
(MIT Center for Energy and Environmental Policy Research, 2004)We consider the impact of sequential investment and active management on the value of a portfolio of real options. The options are assumed to be interdependent, in that exercise of any one is assumed to produce, in addition ... -
Margins, Liquidity and the Cost of Hedging
(MIT CEEPR, 2012-05-21)Recent financial reforms, such as the Dodd-Frank Act in the U.S. and the European Market Infrastructure Regulation, encourage greater use of clearing and therefore increased margining of derivative trades. They also impose ... -
Market power and electricity market reform in Northeast China
(MIT Center for Energy and Environmental Policy Research, 2008)The Northeast region of China has been used as a testing ground for creation of a functioning wholesale electric power market. We describe the ownership structure of the generation assets for those plants participating in ... -
Market power in a storable-good market : theory and applications to carbon and sulfur trading
(MIT Center for Energy and Environmental Policy Research, 2005)We consider a market for storable pollution permits in which a large agent and a fringe of small agents gradually consume a stock of permits until they reach a long-run emissions limit. The subgame-perfect equilibrium ... -
Market Power in Pollution Permit Markets
(MIT Center for Energy and Environmental Policy Research, 2009-04)As with other commodity markets, markets for trading pollution permits have not been immune to market power concerns. In this paper, I survey the existing literature on market power in permit trading but also contribute ... -
Market power in the England and Wales wholesale electricity [market, 1995-2000]
(MIT Center for Energy and Environmental Policy Research, 2004)This paper shows that generators exercised increasing market power in the England and Wales wholesale electricity market in the second half of the 1990s despite declining market concentration. It examines whether this was ... -
Market-Based Emissions Regulation and Industry Dynamics
(MIT CEEPR, 2013-01)We assess the long-run dynamic implications of market-based regulation of carbon dioxide emissions in the US Portland cement industry. We consider several alternative policy designs, including mechanisms that use production ... -
A market-based environmental policy experiment in Chile
(MIT Center for Energy and Environmental Policy Research, 2000)Despite growing interest in the use of emissions trading for pollution control, empirical evidence for this regulatory instrument has been confined to a few experiences in the United States. This paper broadens the empirical ... -
Markets for power in the United States : an interim assessment
(MIT Center for Energy and Environmental Policy Research, 2005)The transition to competitive wholesale and retail markets for electricity in the U.S. has been a difficult and contentious process. This paper examines the progress that has been made in the evolution of wholesale and ... -
A markup interpretation of optimal rules for irreversible investment
(MIT Center for Energy and Environmental Policy Research, 1997)We re-examine the basic investment problem of deciding when to incur a sunk cost to obtain a stochastically fluctuating benefit. The optimal investment rule satisfies a trade-off between a larger versus a later net benefit; ... -
Measuring the degree of economic opening in the German electricity market
(MIT Center for Energy and Environmental Policy Research, 2004) -
Merchant transmission investment
(MIT Center for Energy and Environmental Policy Research, 2003)We examine the performance attributes of a merchant transmission investment framework that relies on "market driven" transmission investment to provide the infrastructure to support competitive wholesale markets for ... -
Micro economics for demand-side management
(MIT Center for Energy and Environmental Policy Research, 1991)This paper aims to interpret Demand-Side Management (DSM) activity and to point out its problems, adopting microeconomics as an analytical tool. Two major findings follow. first, the cost-benefit analysis currently in use ... -
Modeling the Impact of Warming in Climate Change Economics
(MIT Center for Energy and Environmental Policy Research, 2010-01)Any economic analysis of climate change policy requires some model that describes the impact of warming on future GDP and consumption. Most integrated assessment models (IAMs) relate temperature to the level of real GDP ... -
Modelling the Effects of Nuclear Fuel Reservoir Operation in a Competitive Electricity Market
(MIT Center for Energy and Environmental Policy Research, 2010-07)In many countries, the electricity systems are quitting the vertically integrated monopoly organization for an operation framed by competitive markets. In such a competitive regime one can ask what the optimal management ... -
Multi-Factor Model of Correlated Commodity - Forward Curves for Crude Oil and Shipping Markets
(MIT Center for Energy and Environmental Policy Research, 2009)An arbitrage free multi-factor model is developed of the correlated forward curves of the crude oil, gasoline, heating oil and tanker shipping markets. Futures contracts trading on public exchanges are used as the primary ... -
Multipollutant markets
(MIT Center for Energy and Environmental Policy Research, 2001)I study the optimal design of marketable permit systems to regulate various pollutants (e.g. air pollution in urban areas) when the regulator lives in a real world of imperfect information and incomplete enforcement. I ... -
Natural gas pricing in the Northeastern U.S.
(MIT Center for Energy and Environmental Policy Research, 1998)This paper examines natural gas pricing at five citygate locations in the northeastern United States using daily and weekly price series for the years 1994-97. In particular, the effects of the natural gas price at Henry ... -
New entrant and closure provisions : how do they distort?
(MIT Center for Energy and Environmental Policy Research, 2006)As a person whose life began in England and ended in North America and who maintained academic affiliations in the United Kingdom, Canada and the U.S., Campbell Watkins had a fine appreciation for the subtle differences ...
