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

Author

Listed:
  • Paroma Sanyal

    (Brandeis University)

Abstract

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.

Suggested Citation

  • Paroma Sanyal, 2005. "Powering a Green Progress: The Effect of Electricity Deregulation on Environmental Research," Industrial Organization 0504015, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpio:0504015
    Note: Type of Document - pdf; pages: 38
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/io/papers/0504/0504015.pdf
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    References listed on IDEAS

    as
    1. 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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    8. Michael H. Riordan, 1992. "Regulation and Preemptive Technology Adoption," RAND Journal of Economics, The RAND Corporation, vol. 23(3), pages 334-349, Autumn.
    9. Palmer, Karen & Ando, Amy, 1998. "Getting on the Map: The Political Economy of State-Level Electricity Restructuring," Discussion Papers dp-98-19-rev, Resources For the Future.
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    13. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization,in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107 Elsevier.
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    More about this item

    Keywords

    Electricity Deregulation; Environmental R&D; Clean Air Act;

    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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