The technology and cost structure of a natural gas pipeline: Insights for costs and rate-of-return regulation

This note details a complete microeconomic characterization of the physical relationships between input use and the level of output of a simple point-to-point gas pipeline system and uses it to contribute to the public policy discussions pertaining to the economic regulation of natural gas pipelines. We show that the engineering equations governing the design and operations of that infrastructure can be approximated by a single production equation of the Cobb-Douglas type. We use that result to inform three public policy debates. First, we prove that the long-run cost function of the infrastructure formally verifies the condition for a natural monopoly, thereby justifying the need of regulatory intervention in that industry. Second, we examine the conditions for cost-recovery in the short-run and contribute to the emerging European discussions on the implementation of short-run marginal cost pricing on interconnector pipelines. Lastly, we analyze the performance of rate-of-return regulation in that industry and inform the regulatory policy debates on the selection of an appropriate authorized rate of return. We highlight that, contrary to popular belief, the socially desirable rate of return can be larger than the market price of capital for that industry

Observing the observers – uncovering the role of values in research assessments of organic food systems

Assessing the overall effects of organic food systems is important, but also a challenge because organic food systems cannot be fully assessed from one single research perspective. The aim of the article is to uncover the role of values in assessments of organic food systems as a basis for discussing the implications of combining multiple perspectives in overall sustainability assessments of the food system. We explore how values are embedded in five research perspectives assessing organic food systems, 1) Food Science, 2) Discourse Analysis, 3) Phenomenology, 4) Neoclassical Welfare Economics and 5) Actor-Network Theory. The article shows that value has various meanings in different scientific perspectives, and that a strategy for including and balancing different forms of knowledge in overall assessments of the effects of food systems is needed. Based on the analysis, we propose five ecommendations: 1) Elucidate values as a necessary foundation for research assessment across perspectives. 2 The choice of perspective is decisive and should be openly discussed 3) Formulate common goals which can be translated into the different perspectives and 4) Consider assessment of food system sustainability a learning process and design it as such

ILR Faculty Publications 2007-08

The production of scholarly research continues to be one of the primary missions of the ILR School. During a typical academic year, ILR faculty members published or had accepted for publication over 25 books, edited volumes, and monographs, 170 articles and chapters in edited volumes, numerous book reviews. In addition, a large number of manuscripts were submitted for publication, presented at professional association meetings, or circulated in working paper form. Our faculty's research continues to find its way into the very best industrial relations, social science and statistics journals.Faculty_Publications_2007_08.pdf: 39 downloads, before Oct. 1, 2020

Coverage analysis of Scopus: A journal metric approach

Our aim is to compare the coverage of the Scopus database with that of Ulrich, to determine just how homogenous it is in the academic world. The variables taken into account were subject distribution, geographical distribution, distribution by publishers and the language of publication. The analysis of the coverage of a product of this nature should be done in relation to an accepted model, the optimal choice being Ulrich’s Directory, considered the international point of reference for the most comprehensive information on journals published throughout the world. The results described here allow us to draw a profile of Scopus in terms of its coverage by areas – geographic and thematic – and the significance of peer-review in its publications. Both these aspects are highly pragmatic considerations for information retrieval, the evaluation of research, and the design of policies for the use of scientific databases in scientific promotion

Research and Regions. a KWIC Indexed Bibliography

Computerized techniques applied to economics to produce bibliography of related materia

Price-Based vs. Quantity-Based Environmental Regulation under Knightian Uncertainty: An Info-Gap Robust Satisficing Perspective

Conventional wisdom among environmental economists is that the relative slopes of the marginal social benefit and marginal social cost functions determine whether a price-based or quantity-based environmental regulation leads to higher expected social welfare. We revisit the choice between price-based vs. quantity-based environmental regulation under Knightian uncertainty; that is, when uncertainty cannot be modeled with known probability distributions. Under these circumstances, the policy objective cannot be to maximize the expected net benefits of emissions control. Instead, we evaluate an emissions tax and an aggregate abatement standard in terms of maximizing the range of uncertainty under which the welfare loss from error in the estimates of the marginal benefits and costs of emissions control can be limited. The main result of our work is that the same criterion involving the relative slopes of the marginal benefit and cost functions determines whether price-based or quantity-based control is more robust to unstructured uncertainty. Hence, not only does the relative slopes criterion lead to the policy that maximizes the expected net benefits of control under structured uncertainty, it also leads to the policy that maximizes robustness to unstructured uncertainty.emissions control, environmental regulation, info-gap, Knightian uncertainty, robustness, satisficing

An Institutional Frame to Compare Alternative Market Designs in EU Electricity Balancing

The so-called â electricity wholesale marketâ is, in fact, a sequence of several markets. The chain is closed with a provision for â balancing,â in which energy from all wholesale markets is balanced under the authority of the Transmission Grid Manager (TSO in Europe, ISO in the United States). In selecting the market design, engineers in the European Union have traditionally preferred the technical role of balancing mechanisms as â security mechanisms.â They favour using penalties to restrict the use of balancing energy by market actors. While our paper in no way disputes the importance of grid security, nor the competency of engineers to elaborate the technical rules, we wish to attract attention to the real economic consequences of alternative balancing designs. We propose a numerical simulation in the framework of a two-stage equilibrium model. This simulation allows us to compare the economic properties of designs currently existing within the European Union and to measure their fallout. It reveals that balancing designs, which are typically presented as simple variants on technical security, are in actuality alternative institutional frameworks having at least four potential economic consequences: a distortion of the forward price; an asymmetric shift in the participantsâ profits; an increase in the System Operatorâ s revenues; and inefficiencies

Calculating the Cost of Environmental Regulation

Decisions concerning environmental protection hinge on estimates of economic burden. Over the past 30 years, economists have developed and applied various tools to measure this burden. In this paper, developed as a chapter for the Handbook of Environmental Economics, we present a taxonomy of costs along with methods for measuring those costs. At the broadest level, we distinguish between partial and general equilibrium costs. Partial equilibrium costs represent the burden directly borne by the regulated entity (firms, households, government), including both pecuniary and nonpecuniary expenses, when prices are held constant. General equilibrium costs reflect the net burden once all good and factor markets have equilibrated. In addition to partial equilibrium costs, these general equilibrium costs include welfare losses or gains in markets with preexisting distortions, welfare losses or gains from rebalancing the government's budget constraint, and welfare gains from the added flexibility of meeting pollution constraints through reductions in the use of higher-priced, pollution-intensive products. In addition to both partial and general equilibrium costs, we also consider the distribution of costs across households, countries, sectors, subnational regions, and generations. Despite improvements in our understanding of cost measurement, we find considerable opportunity for further work and, especially, better application of existing methods.social cost, cost-benefit, cost-effectiveness, environmental regulation