Retail electricity prices have substantially increased in the last decade in the European Union (EU) as a result of different regulations, raising the concern of policy makers. The growth in the ...support costs for electricity from renewable energy sources (RES-E) has often been singled out as a main driver of the increase in these prices. The aim of this paper is to analyse the degree of influence of RES-E promotion costs on the evolution of the retail price of electricity in the EU Member States. The analysis is carried out for households as well as for industry, with the help of a panel data econometric model. Our results show that the impact of renewable energy promotion costs on retail electricity prices is positive and statistically significant, although relatively small. Differences across consumer types can be observed. An increase of 1% in those costs induces an average increase of only 0.023% in industrial retail prices and 0.008% in the residential retail prices. This impact on retail prices is mediated by the type of support scheme which is adopted, with price-based support instruments showing a greater effect than quantity-based ones.
This paper has two objectives: (1) to introduce a new approach to gaining widespread support for comprehensive road pricing; and (2) to develop a detailed social welfare analysis for road pricing ...schemes. We first describe a new approach to garnering support for system-wide road pricing, which we refer to as an investment public-private partnership, or IP3. This approach returns a significant portion of the economic value created by road pricing back to its citizen-owners. Next, we present a social welfare framework that estimates the benefits and costs of using the IP3 approach on an urban transportation network. Policy makers typically evaluate public-private partnership (P3) projects using Value for Money (VfM) analysis. However, a P3 project's impact on overall social welfare provides a more comprehensive evaluation criterion. Apart from several theoretical studies, a detailed social welfare analysis that includes all major P3 project stakeholders is lacking. Using Fresno City's transportation system as our case study, we show that system-optimal tolling scenarios favor average users, but that government¿and consequently taxpayers¿would pay for costly tolling systems. In contrast, unlimited profit-maximizing tolls raise substantial profits for government, for the infrastructure's citizen-owners, and for the private sector, but the average user is worse off. From a social welfare perspective, one should search for a Pareto-improvement under which all major stakeholders are better off. Our estimates indicate that a mixed private and public tolling scheme offers such an improvement. A mixed scheme results in the highest social welfare among all scenarios unless the weight placed on motorists' (i.e., transportation users') welfare is very low or the weight placed on residents' welfare is very high relative to the weight of other stakeholders.
We analyze the determinants of prices and frequencies in the interurban bus services (IBS) market. Drawing on data collected from a sample of routes in six large European countries, we find that ...intramodal competition is based on frequencies while intermodal competition is based on prices. Furthermore, we provide evidence of the regressive nature of the IBS in Europe by showing that routes with low-income endpoints face higher prices. We also find significant price differences between countries, which can be attributed to differences in their respective regulatory systems.
In automobile insurance, it is useful to achieve
a priori ratemaking by resorting to generalized linear models, and here the Poisson regression model constitutes the most widely accepted basis. ...However, insurance companies distinguish between claims with or without bodily injuries, or claims with full or partial liability of the insured driver. This paper examines an
a priori ratemaking procedure when including two different types of claim. When assuming independence between claim types, the premium can be obtained by summing the premiums for each type of guarantee and is dependent on the rating factors chosen. If the independence assumption is relaxed, then it is unclear as to how the tariff system might be affected. In order to answer this question, bivariate Poisson regression models, suitable for paired count data exhibiting correlation, are introduced. It is shown that the usual independence assumption is unrealistic here. These models are applied to an automobile insurance claims database containing 80,994 contracts belonging to a Spanish insurance company. Finally, the consequences for pure and loaded premiums when the independence assumption is relaxed by using a bivariate Poisson regression model are analysed.
World trade is governed by the rules of the World Trade Organization (WTO), the successor to the General Agreement on Tariffs and Trade (GATT). The WTO sets rules of conduct for the international ...trade of goods and services and for intellectual property rights, provides a forum for multinational negotiations to resolve trade problems, and has a formal mechanism for dispute settlement. It is the primary institution working, through rule-based bargaining, at freeing trade. In this book, Kyle Bagwell and Robert Staiger provide an economic analysis and justification for the purpose and design of the GATT/WTO. They summarize their own research, discuss the major features of the GATT agreement, and survey the literature on trade agreements. Their focus on the terms-of-trade externality is particularly original and ties the book together. Topics include the theory of trade agreements, the origin and design of the GATT and the WTO, the principles of reciprocity, the most favored nation principle, terms-of-trade theory, enforcement, preferential trade agreements, labor and environmental standards, competition policy, and agricultural export subsidies.
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