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Powering a Green Progress: The Effect of Electricity Deregulation on Environmental Research

  • Paroma Sanyal

    (Brandeis University)

Registered author(s):

    This paper analyzes the impact of changing market structure on environmental research expenditure by investor owned utilities in the US electricity sector for the period 1989-1997. The main finding suggests that after controlling for firm characteristics and the “greenness” of the state, deregulation decreases such R&D expenditure, while effective competition increases it. When these opposing trends are factored in, the empirical model estimates that for a one percent increase in overall market competition, environmental research declines by 1.1 percent. It also finds that environmental regulations like the Clean Air Act, can help stem the decline in environmental research even in the face of market restructuring and competition.

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    File URL: http://econwpa.repec.org/eps/io/papers/0504/0504015.pdf
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    Paper provided by EconWPA in its series Industrial Organization with number 0504015.

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    Length: 38 pages
    Date of creation: 13 Apr 2005
    Date of revision:
    Handle: RePEc:wpa:wuwpio:0504015
    Note: Type of Document - pdf; pages: 38
    Contact details of provider: Web page: http://econwpa.repec.org

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    7. Bushnell, James & Wolfram, Catherine, 2008. "Electricity Markets," Staff General Research Papers 31547, Iowa State University, Department of Economics.
    8. Fischer, Carolyn & Parry, Ian W. H. & Pizer, William A., 2003. "Instrument choice for environmental protection when technological innovation is endogenous," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 523-545, May.
    9. Gray, Wayne B & Shadbegian, Ronald J, 1998. "Environmental Regulation, Investment Timing, and Technology Choice," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 235-56, June.
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    18. Leon Courville, 1974. "Regulation and Efficiency in the Electric Utility Industry," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 53-74, Spring.
    19. Paul L. Joskow, 1997. "Restructuring, Competition and Regulatory Reform in the U.S. Electricity Sector," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 119-138, Summer.
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    24. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, volume 1, number 5474.
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