The Behavioral Effect of Pigovian Regulation: Evidence from a Field Experiment

Market-­based regulation, and in particular Pigovian taxes/subsidies, have the potential to make consumers internalize socially harmful external effects associated with their choices. Recent behavioral literature, however, suggests that explicit financial penalties/rewards may undermine willingness to behave prosocially.

Modeling Unit Commitment in Political Context

Electricity sector restructuring processes can undergo long, protracted transition periods that are not well-captured in typical power systems operation models. We create a tractable dispatch optimization with important political considerations for a region of China, demonstrating interactions among institutions relevant for ongoing power sector reforms.

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 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.

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 30, 2017

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...

Jan 23, 2017

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...

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,...

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