Early Nuclear Retirements in Deregulated U.S. Markets

U.S. nuclear reactors have been retiring at an unprecedented pace for the last few years. Tens of gigawatts of zero-emission nuclear capacity are now at risk of retiring prematurely, before the end of their operating license. We examine the root causes of this phenomena, assess its impact on energy policy, and discuss regulatory options for policymakers.

A Green Bargain? Impacts of an Energy Saving Program on China's Iron and Steel Industry

The impact of environmental regulation on firm productivity has been long been debated, however, mainly for western economies and with limited firm-level evidence. We study the impact of a large-scale national energy saving program in China on firm productivity in the iron and steel industry and find positive effects on productivity growth.

Tropical Forests, Tipping Points, and the Social Cost of Deforestation

The existence of a forest-savanna tipping point implies that changes in forest resilience affect the marginal economic value of a standing forest. We propose a new framework for calculating the economic value of a standing tropical forest, and explore the implications of tipping points on the design of optimal land-use policy and payments for ecosystem services.

Limits to Arbitrage in Electricity Markets: A case study of MISO

Like in other deregulated markets, financial players were introduced to the Midwest electricity market to arbitrage price differences that distort planning decisions. Unlike other markets, this did not seemed to be working. Instead, we find some players bidding in the wrong direction and consistently losing money, possibly in an attempt to manipulate market prices.

Wind Capacity Investments: Inefficient Drivers and Long-Term Impacts

In a new CEEPR Working Paper, Ian Schneider and Mardavij Roozbehani explain how existing production-based subsidies for wind energy bias marginal investments to underweight the market value of energy produced.

In The News

Mar 17, 2017

When Do States Disrupt Industries? Electric Cars in Germany and the United States

When do states drive green industrial change? We show that in mature industries with powerful incumbents the ability of the state to organize private interests in support of technological change is...

Feb 10, 2017

Anticipation and Environmental Regulation

Environmental standards can affect new-equipment sales and used-equipment retirements. We identify two additional effects, of anticipation, on the flow and stock of regulated equipment, and discuss...

Jan 19, 2017

Estimating the Future Supply of Shale Oil: A Bakken Case Study

How much shale oil do we have left? And how much of that can be recovered economically? A new estimation technique suggests that, in the Bakken play, roughly 8 billion barrels of the remaining...

Dec 29, 2016

Are Fuel Economy Standards Regressive?

The Corporate Average Fuel Economy (CAFE) program was introduced in 1975 with the objective of reducing gasoline consumption. Under CAFE, automakers are required to meet a minimum sales-weighted...

Dec 22, 2016

Study Shows Hydraulic Fracturing Boosts Local Economies

As hydraulic fracturing, or fracing, is poised to play an even more important role in the nation’s energy system in coming years, how can benefits at the national scale—such as lower energy prices,...

Nov 16, 2016

E2e Project Update: Evaluating Energy Efficiency Upgrades to K-12 Public Schools in California

A new working paper by Fiona Burlig, Christopher Knittel, David Rapson, Mar Reguant and Catherine Wolfram1 studies the cost-effectiveness of energy efficiency investments in over 2,000 K-12...

Oct 23, 2016

Transatlantic Perspectives on Energy Storage: Technology, Policy and Finance

Energy storage will play a critical role in enabling the transition to low-carbon electricity systems, providing capacity, energy, and ancillary benefits to help secure a stable and reliable power...

Oct 8, 2016

Lower Oil Prices and the U.S. Economy: Is This Time Different?

Between June 2014 and March 2016, the inflation-adjusted price of oil dropped by 66%, yet average U.S. economic growth accelerated only slightly from 1.8% at annual rates before the oil price...

Sep 30, 2016

Efficiency and Equity in Today’s Environmental Policy

The economics rationale for environmental regulation is simple and strong: private decisions about how much to pollute lead to socially undesirable levels of pollution. We need policy to correct...

Sep 12, 2016

Predicting the Unpredictable – Handling Uncertainty in Energy Economics and Management

Together with partners from German utility and CEEPR Associate Energie Baden-Württemberg AG (EnBW), the University of Duisburg-Essen and the Stiftung Energie & Klimaschutz, MIT CEEPR organized a...

Sep 1, 2016

The Economics of Unconventional Oil Development

According to the latest energy outlook from the U.S. Energy Information Administration, tight oil production was 4.28 Mb/d for 2014 and 4.89 Mb/d for 2015. It is projected to fall to 4.27 Mb/d for...

Jul 10, 2016

2016 CEEPR-EPRG European Energy Policy Conference

On July 7th and 8th, 2016, CEEPR cooperated with EPRG and Electricité de France to convene the 2016 European Energy Policy Conference in Paris, France. Over 70 participants from research, industry,...

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MIT CEEPR is jointly sponsored by the MIT Sloan School of Management, the MIT Department of Economics, and the MIT Energy Initiative.

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Email: ceepr@mit.edu

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