Transition to Clean Technology
Daron Acemoglu, Ufuk Akcigit, Douglas Hanley, William R. Kerr
Journal of Political Economy,
Nr. 1,
2016
Abstract
We develop an endogenous growth model in which clean and dirty technologies compete in production. Research can be directed to either technology. If dirty technologies are more advanced, the transition to clean technology can be difficult. Carbon taxes and research subsidies may encourage production and innovation in clean technologies, though the transition will typically be slow. We estimate the model using microdata from the US energy sector. We then characterize the optimal policy path that heavily relies on both subsidies and taxes. Finally, we evaluate various alternative policies. Relying only on carbon taxes or delaying intervention has significant welfare costs.
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Ceremonial Encapsulation and the Diffusion of Renewable Energy Technology in Germany
Iciar Dominguez Lacasa
Journal of Economic Issues,
Nr. 4,
2014
Abstract
This inquiry employs ideas advanced by institutionalist thinker Paul Dale Bush to shed light on technology diffusion in Germany’s electrical generation and distribution industry. Research findings suggest that what Bush labeled as ceremonial dominance affects outcomes in technology selection. Evidence suggests that fossil fuel and nuclear technologies have remained favored by power producers despite the externalized environmental costs to society associated with their implementations. Advances in government policy have indeed created a framework that favorably accommodates renewable energy technologies. However, what Bush labeled ceremonial dominance is shown to persist and to contribute to ceremonial encapsulation. Consequently, renewable energy technologies have diffused only to the point that the powers behind the industry remain in dominant positions. Although there is measurable, incremental technological change in the electrical power industry, in light of the urgency of climate change problems, technologies supporting the electrical power system need to be selected more judiciously.
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The Contestable Markets Theory - Efficient Advice for Economic Policy
Christian Growitsch, Thomas Wein
Externe Publikationen,
2004
Abstract
During the nineties of the last century several formerly monopolistic markets (telecommunication, electricity, gas, and railway) have been deregulated in Germany based on European directives and theoretically inspired by the theory of contestable markets. The original contestable market theory implied three assumptions necessary to be satisfied to establish potential competition: Free market entry, market exit possible without any costs, and the price adjustment lag exceeding the entry lag. Our analysis shows that if the incumbent reduces its prices slowly (high adjustment lag) and the market entry can be performed quickly (low entry lag), a new competitor will be able to earn back sunk costs. Therefore it is not necessary that all three conditions be complied with for potential competition to exist. Applying this „revised“ contestable market theory to the deregulated sectors in Germany, natural monopolies can be identified in telecommunication sections local loops and local/regional connection networks, in the national electricity grid and the regional/local electricity distribution networks, in the national and regional/local gas transmission/distribution sections, and in the railroad network. These sections are not contestable due to sunk costs, expected high entry lags and a probably short price adjustment lag. They are identified as bottlenecks, which should be regulated. The function of system operators in energy and railroad are closely related to the non-contestable monopolistic networks.
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Introduction of the Legal Basis and Frame Conditions for the Energy Pricing Policy in the New Federal States of Germany
Martin Weisheimer
Externe Publikationen,
1995
Abstract
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