Fair, Equitable, and Efficient Tariffs in the Presence of DERs

In a new CEEPR Working Paper, the authors delineate various aspects of equity and fairness that regulators must grapple with when designing electricity tariffs and show that more economically efficient tariffs can improve several aspects of equity. The research argues that DER adoption under existing tariff schemes may increase inequities already present in the power system.

Coordinating Separate Markets for Externalities

In a new CEEPR Working Paper, the authors show that inefficiencies from having separate markets to correct an environmental externality are significantly mitigated when firms participate in an integrated product market, using data from an integrated wholesale electricity market.

Who Closes First? Ownership and Collusive Early Exits

Climate and energy policies lead to a declining market for the incumbent technologies in electricity markets. Facing the challenge of closures, incumbent firms have incentives to coordinate closures through cross-ownership to achieve a collusive phase-out. For the Nordic nuclear industry, a quantification shows a highly distorted phase-out, both for the consumer surplus and the environment.

Measuring Savings from Fault Detection and Diagnostics

Data analytics will play a major role in advancing global energy efficiency and high performance building goals nationally and globally. As the fault detection and diagnostics industry emerges and unlocks numerous energy efficiency savings opportunities in buildings, it is crucial that we also advance our methodologies for evaluating these systems and quantifying the energy impact.

Electricity Market Design with Renewables

A new paper compares EU and US electricity market designs, arguing for a focus on correct price formation in the short-term to incentivize investments and reliability. Increased demand-side participation, improved pricing during scarcity, and a transition from technology-specific renewables subsidies towards adequate pricing of carbon emissions, are key to achieving a market-compatible integration of renewable energy.

In The News

May 9, 2018

We don’t know what climate change will cost — that doesn’t mean we can ignore it

Professor Robert S. Pindyck of MIT and Professor James H. Stock of Harvard University discuss the importance of the social cost of carbon in a new piece on TheHill.

Mar 20, 2018

Restructuring Revisited: Competition and Coordination in Electricity Distribution Systems

In light of the decentralization of the power sector, a new CEEPR Working Paper carefully considers how industry structure regulations impacts competition, market development, and the efficiency of...

Mar 7, 2018

Power Sector Reform and Corruption: Evidence from Sub-Saharan Africa

In this paper, the authors conduct an econometric analysis of the performance of reforms in terms of efficiency, welfare, and economic development in 47 countries in Sub-Saharan Africa between 2002...

Feb 21, 2018

3 Questions: The Future of Nuclear Energy

Jacopo Buongiorno and John Parsons, co-directors of the MITEI LCEC for Advanced Nuclear Energy Systems, discuss how to overcome the challenges and realize the benefits of expanding nuclear power.

Feb 2, 2018

3 Questions: Transforming our Electric Power System

Christopher Knittel and Francis O'Sullivan, co-directors of the MITEI LCEC for Electric Power Systems Research, are exploring cleaner, more reliable, and more cost-effective solutions.

Feb 7, 2018

Reforming Electricity Markets for the Transition: Emerging Lessons from the UK's Bold Experiment

In 2013, the UK introduced radical market reform to meet the new challenges - a change which some critics denounced as a return to central planning, whilst others feared the costs. The results to...

Jan 29, 2018

Subsidizing Fuel Efficient Cars: Evidence from China's Automobile Industry

In a new CEEPR Working Paper, the authors examine the response of vehicle purchase behavior to China’s largest national subsidy program for fuel efficient vehicles during 2010 and 2011.

Jan 30, 2018

Jing Li: Applying economics to energy technology

Soon-to-be assistant professor of applied economics focuses on development and deployment solutions that can help the world move to a low-carbon future.

Jan 30, 2018

Is Massachusetts ready for carbon pricing?

On Jan. 25, a panel at MIT explored the benefits, costs, and political challenges involved in translating carbon pricing from concept into law in Massachusetts and beyond.

Jan 24, 2018

The Use of Regression Statistics to Analyze Imperfect Pricing Policies

Corrective taxes can completely solve a variety of market failures, but actual policies are commonly forced to deviate from the theoretical ideal due to administrative or political constraints. A...

Jan 10, 2018

A Sector in Transition: Transportation in the 21st Century

MIT CEEPR, together with the Baker Institute, will host experts for a discussion focusing on the future of transportation. Registration is now open, please find details within.

Jan 4, 2018

What's Killing Nuclear Power in U.S. Electricity Markets?

Prices in U.S. electricity markets fell precipitously in recent years, driving several nuclear power plants to announce plans to close well before the end of their licensed operation. A new working...

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