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The effect of deregulation on environmental research by electric utilities

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  • Paroma Sanyal

Abstract

This paper analyzes the impact of deregulation and restructuring on public-interest environmental research conducted by electric utilities in the US from 1990 to 2001. I find that deregulation has had a substantial negative impact on such expenditures, which have declined by 40%. However, restructuring has had no significant impact. In addition, the 1990 Clear Air Act Amendments have adversely affected such expenditures, contrary to the positive impact these regulations had on pollution abatement R&D as shown in the literature. Results also suggest that state and firm characteristics and regulator preferences play a strong role in the conduct of such research. Copyright Springer Science+Business Media, LLC 2007

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  • Paroma Sanyal, 2007. "The effect of deregulation on environmental research by electric utilities," Journal of Regulatory Economics, Springer, vol. 31(3), pages 335-353, June.
    • Handle: RePEc:kap:regeco:v:31:y:2007:i:3:p:335-353
    DOI: 10.1007/s11149-007-9023-2
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    Cited by:

    1. Nesta, Lionel & Vona, Francesco & Nicolli, Francesco, 2014. "Environmental policies, competition and innovation in renewable energy," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 396-411.
    2. Costa-Campi, M.T. & Duch-Brown, N. & García-Quevedo, J., 2014. "R&D drivers and obstacles to innovation in the energy industry," Energy Economics, Elsevier, vol. 46(C), pages 20-30.
    3. Kim, Jihwan & Kim, Yeonbae & Flacher, David, 2012. "R&D investment of electricity-generating firms following industry restructuring," Energy Policy, Elsevier, vol. 48(C), pages 103-117.
    4. Evens Salies, 2010. "A Test of the Schumpeterian Hypothesis in a Panel of European Electric Utilities," Chapters, in: Jean-Luc Gaffard & Evens Salies (ed.), Innovation, Economic Growth and the Firm, chapter 6, Edward Elgar Publishing.
    5. Schmitt, Stephan & Kucsera, Denes, 2013. "The Impact of the Regulatory Reform Process on R&D Investment of European Electricity Utilities," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80035, Verein für Socialpolitik / German Economic Association.
    6. Nesta, Lionel & Vona, Francesco & Nicolli, Francesco, 2014. "Environmental policies, competition and innovation in renewable energy," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 396-411.
    7. Mengxin Wang & Gaoke Liao & Yanling Li, 2021. "The Relationship between Environmental Regulation, Pollution and Corporate Environmental Responsibility," IJERPH, MDPI, vol. 18(15), pages 1-13, July.
    8. Zhice Cheng & Xinyuan Chen & Huwei Wen, 2022. "How Does Environmental Protection Tax Affect Corporate Environmental Investment? Evidence from Chinese Listed Enterprises," Sustainability, MDPI, vol. 14(5), pages 1-22, March.
    9. Sterlacchini, Alessandro, 2012. "Energy R&D in private and state-owned utilities: An analysis of the major world electric companies," Energy Policy, Elsevier, vol. 41(C), pages 494-506.
    10. Popp, David & Newell, Richard G. & Jaffe, Adam B., 2010. "Energy, the Environment, and Technological Change," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 873-937, Elsevier.
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    12. Kong, Dongmin & Yang, Xiandong & Xu, Jian, 2020. "Energy price and cost induced innovation: Evidence from China," Energy, Elsevier, vol. 192(C).
    13. repec:hal:spmain:info:hdl:2441/f6h8764enu2lskk9p4oq2cqb0 is not listed on IDEAS
    14. Evens Salies & Lionel Nesta, 2010. "Libéralisation et dépôts de brevets verts des utilités électriques en Europe," SciencePo Working papers Main hal-01069447, HAL.
    15. Wang, Nan & Mogi, Gento, 2017. "Deregulation, market competition, and innovation of utilities: Evidence from Japanese electric sector," Energy Policy, Elsevier, vol. 111(C), pages 403-413.
    16. repec:spo:wpmain:info:hdl:2441/f6h8764enu2lskk9p4oq2cqb0 is not listed on IDEAS
    17. repec:spo:wpmain:info:hdl:2441/eu4vqp9ompqllr09hc033ieaj is not listed on IDEAS
    18. Paroma Sanyal & Linda R. Cohen, 2009. "Powering Progress: Restructuring, Competition, and R&D in the U.S. Electric Utility Industry," The Energy Journal, , vol. 30(2), pages 41-80, April.
    19. Costa-Campi, M.T. & Duch-Brown, N. & García-Quevedo, J., 2014. "R&D drivers and obstacles to innovation in the energy industry," Energy Economics, Elsevier, vol. 46(C), pages 20-30.
    20. Carley, Sanya, 2011. "Historical analysis of U.S. electricity markets: Reassessing carbon lock-in," Energy Policy, Elsevier, vol. 39(2), pages 720-732, February.
    21. Yiwan Sun & Fan Yang, 2022. "Does Green Investment Improve the Comprehensive Performance of Enterprises? A Study on Large and Medium-Sized Steel Enterprises in China," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    22. repec:hal:wpspec:info:hdl:2441/eu4vqp9ompqllr09hc033ieaj is not listed on IDEAS
    23. Jain, Ritika, 2021. "Is R&D spending influenced by disinvestment and local political corruption? The case of Indian central public sector enterprises," Economic Systems, Elsevier, vol. 45(3).
    24. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09hc033ieaj is not listed on IDEAS
    25. del Río González, Pablo, 2009. "The empirical analysis of the determinants for environmental technological change: A research agenda," Ecological Economics, Elsevier, vol. 68(3), pages 861-878, January.

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    Keywords

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    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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