Working Paper: NBER ID: w29235
Authors: Ryan Kellogg; Mar Reguant
Abstract: This paper discusses contributions that industrial organization economists have made to our understanding of energy markets and environmental regulation. We emphasize the substantive contributions of recent papers while also highlighting how this literature has adopted and sometimes augmented theoretical and empirical tools from industrial organization. Many of the topics examined by this literature—especially auctions, investment, productivity and innovation, and regulation—also apply to a variety of settings beyond energy and the environment. We also indicate areas where future research is likely to be fruitful, with an emphasis on how industrial organization economists can help inform energy and environmental policies.
Keywords: Energy Markets; Environmental Regulation; Industrial Organization; Policy Analysis; Climate Change
JEL Codes: L0; Q2; Q3; Q4; Q5
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| regulatory changes (G18) | energy markets (Q41) |
| restructuring of the electricity industry (L94) | market behavior (D40) |
| introduction of cap-and-trade markets (Q58) | firm investment decisions (G32) |
| availability of detailed administrative data (C81) | understanding of firm responses to regulatory incentives (H32) |
| environmental regulations (Q58) | firm behavior (D21) |
| regulatory changes (G18) | firms' investment strategies (D25) |
| regulatory changes (G18) | market dynamics (D49) |