Recursos de colección

Caltech Authors (163.553 recursos)

Repository of works by Caltech published authors.

Group = Environmental Quality Laboratory

Mostrando recursos 1 - 20 de 87

  1. Separability and vanishing externalities

    Montgomery, W. David
    In one of the most influential papers written on the subject of externalities, Otto Davis and Andrew Whinston argue that corrective taxes and private bargaining are likely to achieve an optimum in the presence of mutual externalities between two firms only when externalities are separable, in the sense that marginal cost is independent of the level of externality. Further analysis of the concept of separability reveals that even this conclusion is too optimistic. I shall argue below that the assumptions needed to make taxes and negotiations work properly rule out the possibility of having externalities in any observable situation.

  2. The turnkey era in nuclear power

    Burness, H. Stuart; Montgomery, W. David; Quirk, James P.
    The turnkey era is viewed as a temporary deviation from the traditional pattern of conventional contracting that arose because of the informational problems associated with scaling of nuclear reactors to commercial size. General Electric's decision to offer turnkey contracts at a cost competitive with coal units was a decision to invest in a private demonstration program with prospective quasi-rents from later-generation reactors. Competition from Westinghouse kept turnkey prices at levels that increased investment costs for both GE and Westinghouse, and cut into profits in the post-turnkey era. The return to conventional contracting was a natural development, which occurred as soon...

  3. An assessment of the determination of energy needs: The case of nuclear power

    Hahn, Robert W.
    The National Environmental Policy Act (NEPA) forced the Atomic Energy Commission, and subsequently the Nuclear Regulatory Commission, to weigh costs and benefits of proposed nuclear power plants. This paper examines how the Commission has developed a framework for decision making in response to the NEPA mandate. Its principal conclusions are that the Nuclear Regulatory Commission is not interested in being in the business of assessing power needs, and that regulating need by electricity source is counterproductive. If the question of power needs should be addressed at all, the paper argues that a more general framework should be used which would...

  4. Resource allocation, information cost and the form of government intervention.

    Krier, James E.; Montgomery, W. David
    [No abstract]

  5. The theory of the dam: An application to the Colorado River

    Burness, H. Stuart; Quirk, James P.
    [No abstract]

  6. The theory of the dam: An application to the Colorado River

    Burness, H. Stuart; Quirk, James P.
    [No abstract]

  7. Water Law, Water Transfers, and Economic Efficiency: The Colorado River

    Burness, H. Stuart; Quirk, James P.
    [No abstract]

  8. How markets for impure public goods organize: The case of household refuse collection

    Dubin, Jeffrey A.; Navarro, Peter
    [No abstract]

  9. Attitudes towards risk and the optimal exploitation of an exhaustible resource

    Lewis, Tracy R.
    The exploitation of a nonrenewable natural resource, such as petroleum or mineral ores, is analyzed in a stochastic framework with price uncertainty. The market setting may be either monopolistic or competitive. We demonstrate that the rate of extraction varies directly with the resource owner’s willingness to accept risk. Rish-preferring owners use the resource more rapidly than risk-neutral owners, who in turn deplete the resource more rapidly than risk-averse owners. It is also seen that the usual practice of increasing the discount rate to account for risk induces a more rapid rate of resource use, when in fact a slower rate...

  10. Monopoly and the rate of extraction of exhaustible resources: Note

    Lewis, Tracy R.; Matthews, Steven A.; Burness, H. Stuart
    [No abstract]

  11. Appropriative water rights and the efficient allocation of resources

    Burness, H. Stuart; Quirk, James P.
    [No abstract]

  12. Appropriative Water Rights and the Efficient Allocation of Resources

    Burness, H. Stuart; Quirk, James P.
    [No abstract]

  13. Markets and environmental management with a storable pollutant

    Lewis, Tracy R.
    Lee [J. Environ. Econ. Manag., in press] investigates possibilities where pollutants may be stored for a period of time and later released into the environment when adverse effects are minimal. The treatment and storage of pollutants before their release into the environment is a crucial part of many abatement programs. Surprisingly, emission charges will not induce optimal abatement when storage is possible. This occurs because the firms' response to the dynamic tax is indeterminant. We suggest alternative controls, whereby rights to emit pollutants are sold competitively and demonstrate that markets provide incentives for the optimal generation-storage-emission of pollution by firms....

  14. The effect of uncertainty in regulatory delay on the rate of innovation

    Braeutigam, Ronald R.
    When a regulated firm considers the undertaking of an effort to innovate, it often faces incentives quite different from those confronting an unregulated firm. At least three types of uncertainty arise. First, will an innovative effort result in an implementable technology, and if so, when? Second, will the implementation of the technology be delayed by a regulatory authority, and if so, for how long? And finally, when the regulator permits the use of an innovation, what level of benefits will the firm ultimately receive?

  15. The effect of uncertainty in regulatory delay on the rate of innovation

    Braeutigam, Ronald R.
    When a regulated firm considers the undertaking of an effort to innovate, it often faces incentives quite different from those confronting an unregulated firm. At least three types of uncertainty arise. First, will an innovative effort result in an implementable technology, and if so, when? Second, will the implementation of the technology be delayed by a regulatory authority, and if so, for how long? And finally, when the regulator permits the use of an innovation, what level of benefits will the firm ultimately receive?

  16. An analysis of fully distributed cost pricing in regulated industries

    Braeutigam, Ronald R.
    This paper examines the economic consequences of allocating common costs by (1) gross revenues, (2) directly attributable costs, and (3) relative output levels (such as ton-miles) to determine fully distributed cost prices for regulated firms. The analysis characterizes FDC tariffs by examining the nature of the economic inefficiency associated with the rules and explains how opportunities for entry by unregulated firms might change if Ramsey optimal pricing were used instead of FDC pricing.

  17. An analysis of fully distributed cost pricing in regulated industries

    Braeutigam, Ronald R.
    This paper examines the economic consequences of allocating common costs by (1) gross revenues, (2) directly attributable costs, and (3) relative output levels (such as ton-miles) to determine fully distributed cost prices for regulated firms. The analysis characterizes FDC tariffs by examining the nature of the economic inefficiency associated with the rules and explains how opportunities for entry by unregulated firms might change if Ramsey optimal pricing were used instead of FDC pricing.

  18. Fuel cost adjustment mechanisms and the regulated utility facing uncertain fuel prices

    Isaac, R. Mark
    Increases in the cost of fossil fuels helped make automatic fuel cost adjustment mechanisms popular institutions for regulating electric utilities. Economic intuition suggests that these clauses could distort incentives for input choice. The purpose of this article is to explore the theoretical basis for such potential distortions in a world of uncertain fuel prices. Two different models of the regulatory environment are considered. For each, it is shown that input choice incentives are altered in the presence of a fuel adjustment mechanism. Finally, some suggested benefits of such clauses to the financial position of the utility are examined.

  19. The Regulation of Surface Freight Transportation: The Welfare Effects Revisited

    Braeutigam, Ronald R.; Noll, Roger G.
    This paper reexamines a much-studied topic, the effects of surface freight regulation. It demonstrates that several studies use invalid methods to estimate the welfare costs of rate regulation, develops a correct procedure, and provides estimates of the welfare effects using data and modal market share relationships estimated by Boyer. The paper also analyzes some implications of the common assumption that the demand for total freight shipments by all modes is perfectly inelastic.

  20. Market power and transferable property rights

    Hahn, Robert W.
    The appeal of using markets as a means of allocating scarce resources stems in large part from the assumption that a market will approximate the competitive ideal. When competition is not a foregone conclusion, the question naturally arises as to how a firm might manipulate the market to its own advantage. This paper analyzes the issue of market power in the context of markets for transferable property rights. First, a model is developed that explains how a single firm with market power might exercise its influence. This is followed by an examination of the model in the context of a...

Aviso de cookies: Usamos cookies propias y de terceros para mejorar nuestros servicios, para análisis estadístico y para mostrarle publicidad. Si continua navegando consideramos que acepta su uso en los términos establecidos en la Política de cookies.