Nach oben pdf The costs and benefits of ownership unbundling

The costs and benefits of ownership unbundling

The costs and benefits of ownership unbundling

In a general model of an upstream natural monop- oly and a potentially competitive downstream market, there are three possible patterns, each of which has different implications for integration. If the upstream monopoly is not regulated and the downstream mar- ket is competitive, the upstream distribution company will extract all the monopoly rent, the downstream retailer is constrained by competitive pressures, and the outcome will be the same whether or not the com- pany is integrated. However if the downstream retailer has some monopoly power (for example from incum- bency advantages) there is a danger that if they are separated both the unregulated distribution company and the retailer will try to raise price, resulting in so called “double marginalisation”, and a higher price for the end consumer than if the company were integrat- ed. In this case of market power in both parts of the supply chain, the perhaps counterintuitive conclusion is that it would be better both for consumers and for overall economic welfare to integrate the two parts of the chain. The third situation is the most common in practice and relevant to the current discussion. This involves a regulated monopoly distribution company, and an incumbent who retains some market power in the retail market. In this case there is concern about whether a vertically integrated company can infl uence the effectiveness of the regulation and so “lever” its monopoly advantage to deliver (or protect) market power in the downstream market.
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Costs and Benefits of Political and Physical Collaboration in the European Power Market

Costs and Benefits of Political and Physical Collaboration in the European Power Market

The two narratives GREEN and EU show a considerably higher expansion of generation capacities, particularly for renewable technologies, than NATION. Cross- country transmission lines foster the integration of wind and solar power by balancing the demand of one country with power supply from its neighbors which are endowed with better wind and solar resource potentials. Hence, it is interesting to compare the energy transfers between countries by narrative and model, as shown in Figure 5. Although the models have strikingly different absolute values of energy transfers, their qualitative development over time is similar. For all three narratives, transfers are the same until 2030, following the common 10-year network development plan. From 2035 onwards, a higher level of physical collaboration in EU and GREEN allows for the expansion of transmission lines. However, the 25% interconnectivity target in the EU narrative just leads to slightly higher transfers (in urbs) compared to NATION, where this target does not apply. The GREEN narrative allows for unconstrained transmission expansion, leading to a sharp rise in transfers from 2035 onwards. Thus, the models choose to harness solar and wind resources in the best locations in Europe and to rely on the high level of physical collaboration in order to transfer energy to the demand centers.
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Costs and benefits of political and physical collaboration in the European Power Market

Costs and benefits of political and physical collaboration in the European Power Market

4.3. Regional abatement The European decarbonization pathways and related abatement cost are just depicting the uppermost level. An analysis at country-level is necessary to show who is actually bearing the burden of decarbonization. In Figure 6 we depict CO 2 emission intensity at country-level (see equation (E.4) in Appendix E). The first line presents 2015 values from EUREGEN and urbs. The middle line presents outcomes for the three narratives in 2050 for EUREGEN and the lower line the same for urbs. Note that emission intensities above 390 g/kWh are shown separately to allow for a better contrast in the 2050 maps. Starting with 2015 values, Europe is mainly divided into two groups of countries with high (black) and low (white) emission intensities. For example, Poland is the most emission-intensive country in Europe in 2015, whereas Norway, Sweden, France, and Switzerland have almost zero CO 2 emissions from power generation. The emission-intensive countries rely heavily on coal, lignite, and natural gas to meet electricity demand. The countries with clean power systems have either high hydro potential (e.g., Norway), rely heavily on nuclear power (e.g., France), or do both (e.g., Switzerland). However, the business model of nuclear power is under stress in the future according to the three narratives. Most countries consider nuclear power as not economically viable anymore, leading to a reduced usage of it until 2050. As a consequence, France experiences an increase of its emissions in all three narratives.
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The social costs of gun ownership: Spurious regression and unfounded public policy advocacy

The social costs of gun ownership: Spurious regression and unfounded public policy advocacy

2 adjusted 5.4 Nonsense Regression Between Time Series Regression between time series is known to produce spurious results in the fol- lowing settings: trending or auto correlated time series (Granger and Newbold 1974), I(1) processes without drift (Phillips 1986), I(1) processes with further stationary regressors (Hassler 1996), stationary AR processes (Granger, Hyung and Jeon 2001), random walks with and without drift for fixed effects panel mod- els (Entorf 1997), time-varying means (Hassler 2003), and stationary processes around linear trends (Kim, Lee and Newbold 2004), as well as in fixed effects (or first differences) estimations with weak variation in the time series (Choi 2011). It seems unlikely that none of these situations occurred in the original analysis, and thus there may be more sources for spurious results than just the ratio problem. As noted by C&L themselves (p. 383), there are heterogeneous trends for the dependent variable between counties. This is illustrated in Figure 1. Clearly, a single time dummy is incapable of detrending heterogeneous trends across counties. Therefore, not all trends will be accounted for in C&L’s original model. Many of those time-series-related problems are automatically dealt with when taking first differences, while the single time dummy from model (2) is not able to detrend heterogeneous county trends.
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Costs and benefits of differentiated integration: Lessons from the Schengen and Pruem laboratories

Costs and benefits of differentiated integration: Lessons from the Schengen and Pruem laboratories

As we can derive from this taxonomy, transaction-costs are conceptually inherently dynamic (Dixit 1996, pp. 43-44). The last component of our framework adds to these dynamic aspects and the strategic dimension of club formation. I borrow from insights of the venue-shopping theory as outlined by Baumgartner and Jones (1993) that theorizes similar strategic actions, but rests on basic assumptions which are not sufficiently convincing under the present discussion of differentiated integration. 2 A recent perspective on venue shopping that focuses less on the issues at stake and more systematically on the key actors’ political strategies is helpful to convincingly apply this framework to the challenging issue of differentiated integration as club formation (Pralle 2003). Firstly, Pralle argues that venue shopping (read here instead: sub club formation) can be more experimental and less deliberate or calculated than commonly perceived; secondly, actors choose venues not only to advance substantive policy goals, but also to reinforce organizational identities; and finally, venue choice is shaped by policy learning processes (Pralle 2003, 234). In general, these findings fit very well with the empirical case studies of this article and can be transposed to club theory reasoning. Club formation opens the leverage to forward and decide on policy proposals that have been blocked in the Council before. Tactical reasoning of adversaries' exclusion seems to be purely calculated, whereas the “long term” circumvention strategy is far more experimental and challenged by contingent dynamics. I presume that the strategic goal of the sub club members is to eventually communitarize their club good by having all member states take part in the policy by way of altering the cost-benefit balance. I, however, argue that experimentation and contingency play a major role in the process of defining how this strategic goal can be reached. Furthermore, Pralle's emphasis of policy learning touches my case studies in two ways. First, in several aspects the Pruem initiative was rooted in the Schengen experience and partly driven by the same actors. Hence, it accounts per se for an instance of policy learning. Second, empirical evidence from both cases shows a strong reframing of the initiative as a
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Self-employment and marriage: Costs and benefits

Self-employment and marriage: Costs and benefits

Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.

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Regional disintegration in the Soviet Union: Economic costs and benefits

Regional disintegration in the Soviet Union: Economic costs and benefits

Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.

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Assessing the costs and benefits of capital-based macroprudential policy

Assessing the costs and benefits of capital-based macroprudential policy

real activity, which emerged following the recession in the U.S. in the 1990s (see, e.g., Bernanke and Lown 1991, Hancock and Wilcox 1993, Berger and Udell 1994, and Furfine 2000). The studies that evolved since then, including those that were motivated by the recent global financial crisis, can be grouped according to how changes in capital are measured. Using observed capital ratios is one option (see e.g. Bernanke and Lown 1991, Noss and Toffano 2014) while exploiting variation in bank-level capital requirements, i.e. supervisory data which is in general unobservable for the public, is a second (see e.g Ediz et al. 1998, Mishkin 2000, Francis and Osborne 2009, Aiyar et al. 2014b, Bridges et al. 2014, Jim´ enez et al. 2014, Meeks 2015, and Behn et al. 2016). Our paper circumvents an identification based on capital and instead translates the impulses first to credit supply shocks (of two polar kinds) which can then be identified based on sign restrictions. That is, we assume that capital ratios are adjusted by the amount required by the prudential supervisor and distinguish between ’asset-side deleveraging’ and ’raising fresh equity’ scenarios. By considering these two polar cases, we are agnostic about the effects of higher capital requirements on banks’ funding costs and the pass-through to lending rates.
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Assessing the costs and benefits of capital-based macroprudential policy

Assessing the costs and benefits of capital-based macroprudential policy

frameworks. Alternatively, we estimate eq. (1) without country dummies. 8 Since many of the countries in our sample were affected by the global financial crisis, robust standard errors are clustered at the quarterly level in order to account for potential correlation in the error terms. To extract early warning signals from the logistic model we make use of the signalling approach that was developed by Kaminsky et al. (1998) and extended by Alessi and Detken (2011), Lo Duca and Peltonen (2013) and Sarlin (2013). The idea is to define a probability threshold above which a model issues a warning signal, where the optimal threshold depends on policy makers’ relative aversion against Type I errors (not issuing a signal when a crisis is imminent) and Type II errors (issuing a signal when no crisis is imminent). Specifically, the logistic model issues a warning signal whenever the predicted probability of being in a vulnerable state exceeds a threshold τ , defined as a percentile of the country-specific distribution of predicted probabilities. In this way, predicted probabilities P (yit \ = 1) are transformed into binary predictions ˆ Qit that equal one if the threshold τ is exceeded for the respective observation and zero otherwise. The predictive ability of the model can then be evaluated by comparing the signals issued by the model to the actual outcome C it (equal to one if the country experiences a crisis seven to twelve quarters ahead of the respective period and zero otherwise.). Each observation is allocated to one of the quadrants in the contingency matrix depicted in Figure 1: A period with a signal by a specific indicator can either be followed by a systemic crisis seven to twelve quarters ahead (TP) or not (FP). Similarly, a period without a signal can be followed by a crisis seven to twelve quarters ahead (FN) or not (TN). The number of observations classified into each category depends on the threshold τ .
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Does ownership unbundling matter? Evidence from UK energy markets

Does ownership unbundling matter? Evidence from UK energy markets

also had issues with internal governance when its in- ternal (and independent) market-monitoring unit was threatened with outsourcing. 31 This raises the issue of whether an ISO, which is not independent (of its stake- holding generators) and which is a non-profi t entity that relies on stakeholder support, can function as effec- tively as an ITSO. In European countries, ISOs facing well-capitalised and large electricity and gas transmis- sion asset owners may even exacerbate the problem of ensuring adequate transmission investment. Prob- lems seem to be acute when transmission expansions are required and contested by incumbent generators (e.g. in the case of Chilean electricity). ISOs therefore seem to address the issue of nondiscriminatory ac- cess but not solve the issue of investment adequacy (they may even create it). Clearly the unwillingness of integrated generation and transmission asset owning fi rms to propose socially benefi cial investments, which reduce prices by facilitating competition, is both a the- 28 P. L. J o s k o w : Independent system operators (VI + Access rules
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The economics of enhancing accessibility estimating the benefits and costs of participation

The economics of enhancing accessibility estimating the benefits and costs of participation

disability as ‘arising from the interaction of a person’s functional status with the physical, cultural, and policy environments.’ Many countries now use the ‘Washington Group Short Set’ questions to produce internationally comparable data about disability and its variation within a population. These questions include for example ‘Do you have difficulty seeing, even if wearing glasses?’ and ‘Do you have difficulty walking or climbing steps?’ (Madans, Loeb & Altman, 2011; Washington Group on Disability Statistics, 2009). Frye (2012) states that Census data such as the Washington Group Short Set responses are often too broad to be useful as a driver of policy change, and in any case there is too much lag between data collection and its publication for it to be a political lever. In some countries (including New Zealand), these data about disability are not disaggregated to anything less than national or regional level. Importantly, for this paper, lacking low-level spatial data about people and their diverse abilities means that local authorities who make transport investment decisions have no data at all about differences within their population; they cannot invest in accessibility improvements that would benefit particular groups with any confidence that the investment in that particular location is justified according to relative need.
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The longer-term costs and benefits of different initial teacher training routes

The longer-term costs and benefits of different initial teacher training routes

Since the 1960s, when the push began to make teaching an all-graduate profession, the roles of higher education institutions and schools in initial teacher training (ITT) have been the focus for debate and significant variation in practice, in both undergraduate teaching degrees (BEd) and post-graduate (PGCE) courses. Further policy-making has resulted in a proliferation of training routes, as well as incentives for aspirant teachers. This has been accompanied by sporadic debate about theory and ideology versus practice and ‘craft’, and an associated reduction in the role of universities in teacher training. In 1992 Ken Clarke made it a requirement for all ITT to involve partnerships between HEIs and schools. From then, new routes into teaching were introduced (building on the Articled and Licensed Teacher schemes), including SCITT (school-centred), the Graduate Teacher Programme (GTP) – an employment-based and immediately-salaried route ostensibly aimed at older entrants, and Teach First – an employment-based route aimed at ‘high-flying’ new graduates. The Coalition Government introduced Teaching Schools (which gives well-performing schools a wider professional development role), and School Direct, a school-led route where participating schools contract accredited training providers and then recruit, select and employ their own trainees. Underlying the development of these new routes is a trend towards giving schools ever-increasing responsibility for the development and accreditation of newly-qualified teachers, which looks set to grow if the aims of the recent ‘Educational excellence everywhere’ White Paper are realised.
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Property rights and transaction costs: The role of ownership and organization in German public service provision

Property rights and transaction costs: The role of ownership and organization in German public service provision

The four levels of this main variable of interest are IN ST , P U B LIM , SEM P U B LIM and P RIV LIM : the institution and three types of limited-liability companies with varying ownership. We thus compare each organizational structure with the fifth (baseline) category M U N I, which we had previously defined as traditional public provision. Because each firm offers a slightly different portfolio of city services, we control for possible effects of specializing in some of them. The variable SP E takes on the value of 1 if the firm only carries out garbage collection and street cleaning services. Our main specification uses the TFP measures from the value added production function. The results from estimating the baseline equation (4) are presented in Table 3. Column (1) controls for our four indicators of organizational structure. Interestingly, only the effect of P RIV LIM is highly significant at the 1% level with a coefficient of 0.2574, indicating that private firms organized in a limited-liability company are approximately 29% more efficient than the baseline group M U N I. 30 Given that the other categories are not significantly different from the baseline group the absolute productivity advantage is similar to the other groups.
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Renewable energy deployment - do the benefits outweigh the costs?

Renewable energy deployment - do the benefits outweigh the costs?

Renewable energy is supported in Germany by a variety of measures. The most promi- nent is the above mentioned EEG which has been “exported” to more than 20 countries in Europe and worldwide. The significant elements of the EEG are the priority access of electricity generated from renewable sources to the grid and the technology specific feed-in tariff, which allows for a diverse mix of sources and technologies. It also is designed as to spur innovation because it has built-in degression mechanisms with decreasing tariffs over the different generations of electricity generating technologies. The heat sector applications are supported by the market incentive program (MIP) and by regulation for the building sector which sets certain quota for the use of RE in heat generation (space and water heat- ing, as well as cooling) respectively alternative measures to cover primary energy con- sumption. On top of these mechanisms, KfW gives soft loans at below market rates. This contribution focuses on the three regulatory mechanisms.
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Property rights and transaction costs : The role of ownership and organization in German public service provision

Property rights and transaction costs : The role of ownership and organization in German public service provision

In this literature, joint ownership is not discussed very frequently. In reality, the mixed enterprise, where public and private partners jointly own and operate a company through a consortium, is observed often. 14 Such a form has been advocated by practitioners for relieving fiscal distress and improving operational expertise, while at the same time mitigating the risk of quality deterioration created by private ownership (Bennett, James, and Grohmann, 2000). However, some theoretical contributions have alluded to potential problems between partners of a consortium arising because of imperfect monitoring capabilities, essentially an agency conflict within a firm (Martimort and Pouyet, 2008, p.400). 15 With respect to the role of ownership in our empirical analysis, we might expect a positive effect of private ownership, supported by the theoretical and empirical literature presented here. There is no such predisposition towards mixed firms, because they are rarely considered as their own category in empirical studies. Any potential effect on their role is highly policy relevant because the costs and benefits of private involvement in public firms is a frequent point of debates. Further, our analysis will later reveal whether there are productivity differences within publicly-owned firms due to their precise legal form and corresponding internal organization.
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Costs and Benefits of Overlapping Regional Organizations in Latin America: the Case of the OAS and UNASUR

Costs and Benefits of Overlapping Regional Organizations in Latin America: the Case of the OAS and UNASUR

President Correa’s position. The involvement of both the OAS and UNASUR dis- suaded possible coup plotters. There was no stress on human resources because UNASUR worked through the presidents of the member countries and the OAS acted through the diplomatic representatives on its Permanent Council. There was no blockade within any of the regional organizations involved and no forum shop- ping on the part of the Ecuadorian president. The OAS and UNASUR did not compete directly, but due to the higher visibility and greater agility of presidential diplomacy, UNASUR was perceived as more proactive and decisive in this crisis. The Ecuadorian crisis resulted in the reinforcement of international standards for defending democracy and legitimate governments in South America. As a result of the crisis, the presidents of the UNASUR member states decided to develop a spe- cific democratic clause as an additional protocol to UNASUR’s Constitutive Treaty. In this regard, UNASUR emulated the benchmark set by the OAS.
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Development of REACH – Review of evidence on the benefits & costs of REACH

Development of REACH – Review of evidence on the benefits & costs of REACH

What has been covered less well are some of the costs which are much harder to model or pre- dict, which arise at the national level as part of MS implementation (e.g. inspection related costs), and which arise from on-going implementation decisions which are not subject to IA re- quirements (e.g. changes by ECHA in guidance or in its implementation and enforcement, e.g. costs arising from compliance checks, substance evaluation and legal challenges to the outcomes of these). There is also inadequate attention given to the impacts arising from the conditions placed on granted Authorisations, for example related to specific conditions of use or additional monitoring requirements; these can be proposed/set with no consideration as to the real cost- benefit trade-offs involved, particularly where the risks are already assessed as being very low. Other impacts that are poorly understood and poorly researched include impacts on trade spe- cifically due to REACH and its implementation and impacts in terms of displaced or foregone in- vestment and R&D by industry. In addition, there is a lack of data on the extent to which there are overlaps, synergies and antagonisms between what is being required under REACH Authori- sation decisions with what is also required under e.g. the Carcinogens and Mutagens Directive. There is also a lack of data on the extent to which there may have been regrettable substitutions, as a result of SVHC substance withdrawals in general, the Candidate List, and REACH Authorisa- tion. However, companies are also unlikely to be forthcoming with such information, limiting the potential for research in this area.
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The costs and benefits of different initial teacher training routes

The costs and benefits of different initial teacher training routes

As for primary schools, for secondary schools there is a clear significant difference in the percentage of respondents who expect to hire the trainee between university-based routes (in this case HEI-led PGCE only) and school- based routes (excluding School Direct unsalaried trainees, where the percentage is not significantly different from that for HEI-led PGCE trainees). Teach First trainees are the most likely to have a strong expectation of being hired, significantly more even than for School Direct salaried trainees, who NCTL expects to be employed by the school or partnership following qualification, as noted earlier. In fact, Teach First trainees are expected to remain in the school for at least one year following qualification, so it is perhaps surprising that the percentage of respondents who expect to hire the trainee is not higher than 59%. 45 As in primary schools, these differences hold conditional on trainee and school characteristics, suggesting that characteristics of the route rather than trainee and/or school characteristics of those that choose school-based routes account for the largest proportion of the difference in the expectation to hire. Those with ‘very good’ potential to be a good teacher are significantly more likely to be expected to be hired, however, suggesting that hosting a trainee from any route can aid recruitment if a trainee has good potential.
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Assessing Costs and Benefits of Coastal Structures to Mitigate Erosion

Assessing Costs and Benefits of Coastal Structures to Mitigate Erosion

The sediment transport volumes are estimated by formulae that consider the angle of the shoreline to oncoming breaking waves, the breaking wave height, the beach slope and the sediment grain size. Using three-dimensional topographic data that is continuously updated during simulation, the model assumes that each wave acts during a certain period of time ∆t (computational time step) and is able to distribute erosion or accretion resulting from longshore transport along the active cross-shore profile. The 3D topo-bathymetric model is continuously updated during simulation, allowing distributing erosion or accretion sediment volumes between each computational time step. The wave transformation by refraction, diffraction and shoaling is modelled in a simplified manner (Coelho et al., 2007), always taking into consideration the updated bathymetric data of each time step. According to Coelho (2005), the refraction effects in LTC are estimated through Snell's law, while the shoaling effect is calculated assuming that Airy's linear theory of sinewaves is valid. The diffraction effects are only calculated for beach extensions located downdrift the groins, considering a simplified method, based on Sorensen et al. (2003). The shoreline evolution numerical model LTC was considered to estimate the benefits of a coastal intervention scenario through the evaluation of the territory maintained, gained, or lost, along the time. In the cost-benefit assessment, a land use value is assigned to every year area gained, maintained or lost along the shoreline evolution simulation time horizon. 2.2 Structures Pre-Design
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Eastward enlargement: Benefits and costs of EU entry for the transition countries

Eastward enlargement: Benefits and costs of EU entry for the transition countries

Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.

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