Essays on Energy Economics and Industrial Organization

The dissertation consists of three chapters related to the low-price guarantee marketing strategy and energy efficiency analysis. The low-price guarantee is a marketing strategy in which firms promise to charge consumers the lowest price among their competitors. Chapter 1 addresses the research question "Does a Low-Price Guarantee Induce Lower Prices'' by looking into the retail gasoline industry in Quebec where there was a major branded firm which started a low-price guarantee back in 1996. Chapter 2 does a consumer welfare analysis of low-price guarantees to drive police indications and offers a new explanation of the firms' incentives to adopt a low-price guarantee. Chapter 3 develops the energy performance indicators (EPIs) to measure energy efficiency of the manufacturing plants in pulp, paper and paperboard industry.

Chapter 1 revisits the traditional view that a low-price guarantee results in higher prices by facilitating collusion. Using accurate market definitions and station-level data from the retail gasoline industry in Quebec, I conducted a descriptive analysis based on stations and price zones to compare the price and sales movement before and after the guarantee was adopted. I find that, contrary to the traditional view, the stores that offered the guarantee significantly decreased their prices and increased their sales. I also build a difference-in-difference model to quantify the decrease in posted price of the stores that offered the guarantee to be 0.7 cents per liter. While this change is significant, I do not find the response in comeptitors' prices to be significant. The sales of the stores that offered the guarantee increased significantly while the competitors' sales decreased significantly. However, the significance vanishes if I use the station clustered standard errors. Comparing my observations and the predictions of different theories of modeling low-price guarantees, I conclude the empirical evidence here supports that the low-price guarantee is a simple commitment device and induces lower prices.

Chapter 2 conducts a consumer welfare analysis of low-price guarantees to address the antitrust concerns and potential regulations from the government; explains the firms' potential incentives to adopt a low-price guarantee. Using station-level data from the retail gasoline industry in Quebec, I estimated consumers' demand of gasoline by a structural model with spatial competition incorporating the low-price guarantee as a commitment device, which allows firms to pre-commit to charge the lowest price among their competitors. The counterfactual analysis under the Bertrand competition setting shows that the stores that offered the guarantee attracted a lot more consumers and decreased their posted price by 0.6 cents per liter. Although the matching stores suffered a decrease in profits from gasoline sales, they are incentivized to adopt the low-price guarantee to attract more consumers to visit the store likely increasing profits at attached convenience stores. Firms have strong incentives to adopt a low-price guarantee on the product that their consumers are most price-sensitive about, while earning a profit from the products that are not covered in the guarantee. I estimate that consumers earn about 0.3% more surplus when the low-price guarantee is in place, which suggests that the authorities should not be concerned and regulate low-price guarantees. In Appendix B, I also propose an empirical model to look into how low-price guarantees would change consumer search behavior and whether consumer search plays an important role in estimating consumer surplus accurately.

Chapter 3, joint with Gale Boyd, describes work with the pulp, paper, and paperboard (PP&PB) industry to provide a plant-level indicator of energy efficiency for facilities that produce various types of paper products in the United States. Organizations that implement strategic energy management programs undertake a set of activities that, if carried out properly, have the potential to deliver sustained energy savings. Energy performance benchmarking is a key activity of strategic energy management and one way to enable companies to set energy efficiency targets for manufacturing facilities. The opportunity to assess plant energy performance through a comparison with similar plants in its industry is a highly desirable and strategic method of benchmarking for industrial energy managers. However, access to energy performance data for conducting industry benchmarking is usually unavailable to most industrial energy managers. The U.S. Environmental Protection Agency (EPA), through its ENERGY STAR program, seeks to overcome this barrier through the development of manufacturing sector-based plant energy performance indicators (EPIs) that encourage U.S. industries to use energy more efficiently. In the development of the energy performance indicator tools, consideration is given to the role that performance-based indicators play in motivating change; the steps necessary for indicator development, from interacting with an industry in securing adequate data for the indicator; and actual application and use of an indicator when complete. How indicators are employed in EPA’s efforts to encourage industries to voluntarily improve their use of energy is discussed as well. The chapter describes the data and statistical methods used to construct the EPI for plants within selected segments of the pulp, paper, and paperboard industry: specifically pulp mills and integrated paper & paperboard mills. The individual equations are presented, as are the instructions for using those equations as implemented in an associated Microsoft Excel-based spreadsheet tool.

Plan exportador para la empresa DAGALA plásticos E.U

La internacionalización es un paso muy importante para las empresas que desean alcanzar mercados exteriores e incrementar ventas asegurando la sostenibilidad en el tiempo. La globalización viene siendo un tema crucial no solo para las naciones sino también para las empresas. Mientras que los gobiernos deben preocuparse por establecer políticas que los haga competitivos frente al mundo, las empresas, estando en ese lecho de políticas deben generar estrategias que garantice su perdurabilidad en los mercados. Por otro lado las empresas deben ser conscientes que las necesidades se transforman y en cuanto esto pase, las organizaciones deben tener la capacidad de respuesta oportuna para satisfacer lo que la demanda requiera, pues los consumidores de hoy, son altamente exigentes y difícilmente fieles. Las empresas que desean internacionalizarse deben ser estrategas para realizar los pasos adecuados tomando las decisiones más acertadas, por lo que esta investigación busca basarse en fuentes bibliográficas y guías en expertos para consolidar la información y traducirla en el diseño del plan exportador que busque reducir riesgos. DAGALA Plásticos E.U es la empresa en la cual esta investigación se va a basar, dicha organización es una pyme colombiana que se dedica a la producción de ganchos plásticos de excelente calidad con material reciclado (polipropileno). Por ende es una empresa que pertenece al sector de los plásticos, pero se enfoca a un nicho de mercado mucho más popular pues el producto que ofrecen es de bajo precio debido al material que usan. Su clasificación internacional industrial uniforme es 2529 que hace referencia a la fabricación de artículos de plástico, este código está acorde con el International Standard of Industrial Classification of All Economic Activities (ISIC) el cual es el código internacional desarrollado por UN como una manera estándar para la calificación de las actividades económicas. Se busca diseñar el plan exportador para dicha empresa, dividiendo el estudio en etapas. En la primera se pretende realizar un diagnóstico situacional con el fin de saber cómo está la empresa actualmente lo cual nos resolverá su potencial para exportar dado en fortalezas y debilidades. Si la primera etapa arroja resultados satisfactorios, el siguiente paso es realizar un estudio de mercado para encontrar el país más propicio a exportar, con un análisis debido de competencia y de barreras al comercio. Por el contrario, si no arrojan resultados positivos, se enfocará en las debilidades para hacer más posible en un futuro la exportación. La tercera etapa se concentrará en formular la logística del producto desde su punto de fabricación hasta el país final. Y finalmente se concluirá el trabajo. (Etapas en la redacción del estudio de caso de DAGALA Plásticos-preliminar-planeación-organización- desarrollo-conclusión)

Oil price shocks and policy implications the emergence of U.S. tight oil production: a case study

How have shocks to supply and demand affected global oil prices; and what are key policy implications following the resurgence of oil production in the United States? Highlights: − The recent collapse in global oil prices was dominated by oversupply. − The future of tight oil in the United States is vulnerable to obstacles beyond oil prices. − Opinions on tight oil from the Top 25 think tank organizations are considered. Global oil prices have fallen more than fifty percent since mid-2014. While price corrections in the global oil markets resulted from multiple factors over the past twelve months, surging tight oil production from the United States was a key driver. Tight oil is considered an unconventional or transitional oil source due to its location in oil-bearing shale instead of conventional oil reservoirs. These qualities make tight oil production fundamentally different from regular crude, posing unique challenges. This case study examines these challenges and explores how shocks to supply and demand affect global oil prices while identifying important policy considerations. Analysis of existing evidence is supported by expert opinions from more than one hundred scholars from top-tier think tank organizations. Finally, implications for United States tight oil production as well as global ramifications of a new low price environment are explored.

Meta-analysis of the income and price elasticities of gasoline demand: public policy implications for Latin America

By means of a meta-analysis, this article sets out to estimate average values for the income and price elasticities of gasoline demand and to analyse the reasons for the variations in the elasticities reported by the literature. The findings show that there is publication bias, that the volatility of elasticity estimates is not due to sampling errors alone, and that there are systematic factors explaining these differences. The income and price elasticities of gasoline demand differ between the short and long run and by region, and the estimation can appropriately include the vehicle fleet and the prices of substitute goods, the data types and the estimation methods used. The presence of a low price elasticity suggests that a fuel tax will be inadequate to control rising consumption in a context of rapid economic growth.

The importance of project governance framework in project procurement planning

Project Procurement is a ‘great’ environment for ethical issues with its low-price state of mind and competition. It has many opportunities that could contribute to illegal activities or unethical behavior especially in the construction industry. In 2006 alone, 17.3% of 417 Malaysian government contract projects were considered sick due to the poor performance by the contractors. Therefore it is important to govern the project procurement, especially the plan procurement stage to ensure the accountability and transparency of the decision made in awarding the right contract to the best contractor. This is where project governance framework (PGF) is really needed in project procurement planning. Project governance is a subset of corporate governance focusing on the areas of corporate governance related to project activities, including: portfolio direction, project sponsorship, project and program management and efficiency and disclosure and reporting. This paper highlights the importance of implementing project governance framework (PGF) to ensure that the decision makers are answerable and accountable to the stakeholders, and the decision making is transparent to avoid any ethical issues arises. A comprehensive preliminary literature is carried out to discover the importance of executing PGF in project procurement in Malaysian public sector. By understanding the important of PGF, it is hoped that this will bring a signal to other developing countries to implement the similar method in ensuring the transparency of the decision making in project procurement planning in their countries.

Comparing different explanations of the volatility trend

We analyze the puzzling behavior of the volatility of individual stock returns over the past few decades. The literature has provided many different explanations to the trend in volatility and this paper tests the viability of the different explanations. Virtually all current theoretical arguments that are provided for the trend in the average level of volatility over time lend themselves to explanations about the difference in volatility levels between firms in the cross-section. We therefore focus separately on the cross-sectional and time-series explanatory power of the different proxies. We fail to find a proxy that is able to explain both dimensions well. In particular, we find that Cao et al. [Cao, C., Simin, T.T., Zhao, J., 2008. Can growth options explain the trend in idiosyncratic risk? Review of Financial Studies 21, 2599–2633] market-to-book ratio tracks average volatility levels well, but has no cross-sectional explanatory power. On the other hand, the low-price proxy suggested by Brandt et al. [Brandt, M.W., Brav, A., Graham, J.R., Kumar, A., 2010. The idiosyncratic volatility puzzle: time trend or speculative episodes. Review of Financial Studies 23, 863–899] has much cross-sectional explanatory power, but has virtually no time-series explanatory power. We also find that the different proxies do not explain the trend in volatility in the period prior to 1995 (R-squared of virtually zero), but explain rather well the trend in volatility at the turn of the Millennium (1995–2005).

Grocery product pricing and Australian supermarket consumers : gender differences in perceived importance levels

Grocery shopping is an essential and routine activity. Although long regarded the responsibility of the female spouse, modern social and demographic shifts are causing men to become more engaged in this task. This is the first study to analyse gender differences with respect to the criterion of grocery product price within an Australian supermarket retail environment. A stratified sample of 140 male and 140 female grocery shoppers was surveyed. Results showed that men considered price attributes of products as being significantly lower in importance than did women. Additionally, men displayed lower levels of price nvolvement, reported referencing shelf price to a lesser extent, and gave lesser consideration to promotional tactics focusing on low price. Although men on average buy fewer items than do women, they spend more money for each item they purchase. This higher expenditure per item appears to be driven, at least in part, by a lack of price referencing. This research has implications for gender studies and consumer behaviour disciplines in relation to grocery shopping.

Nondiscretionary residential water use : the impact of habits and water-efficient technologies

Several studies published in the last few decades have demonstrated a low price-elasticity for residential water use. In particular, it has been shown that there is a quantity of water demanded that remains constant regardless of prices and other economic factors. In this research, we characterise residential water demand based on a Stone-Geary utility function. This specification is not only theory-compatible but can also explicitly model a minimum level of consumption not dependent on prices or income. This is described as minimum threshold or nondiscretionary water use. Additionally, the Stone-Geary framework is used to model the subsistence level of water consumption that is dependent on the temporal evolution of consumer habits and stock of physical capital. The main aim of this study is to analyse the impact of water-saving habits and water-efficient technologies on residential water demand, while additionally focusing attention on nondiscretionary uses. This is informed by an empirical application using data from a survey conducted among residents of Brisbane City Council, Australia. The results will be especially useful in the design of water tariffs and other water-saving policies.

Na2M2(SO4)(3) (M = Fe, Mn, Co and Ni): towards high-voltage sodium battery applications

Sodium-ion-based batteries have evolved as excellent alternatives to their lithium-ion-based counterparts due to the abundance, uniform geographical distribution and low price of Na resources. In the pursuit of sodium chemistry, recently the alluaudite framework Na2M2(SO4)(3) has been unveiled as a high-voltage sodium insertion system. In this context, the framework of density functional theory has been applied to systematically investigate the crystal structure evolution, density of states and charge transfer with sodium ions insertion, and the corresponding average redox potential, for Na2M2(SO4)(3) (M = Fe, Mn, Co and Ni). It is shown that full removal of sodium atoms from the Fe-based device is not a favorable process due to the 8% volume shrinkage. The imaginary frequencies obtained in the phonon dispersion also reflect this instability and the possible phase transition. This high volume change has not been observed in the cases of the Co- and Ni-based compounds. This is because the redox reaction assumes a different mechanism for each of the compounds investigated. For the polyanion with Fe, the removal of sodium ions induces a charge reorganization at the Fe centers. For the Mn case, the redox process induces a charge reorganization of the Mn centers with a small participation of the oxygen atoms. The Co and Ni compounds present a distinct trend with the redox reaction occurring with a strong participation of the oxygen sublattice, resulting in a very small volume change upon desodiation. Moreover, the average deintercalation potential for each of the compounds has been computed. The implications of our findings have been discussed both from the scientific perspective and in terms of technological aspects.

Lignin extraction, purification and depolymerization study

280 p. : il.

Proximate composition of 17 species of Indian fish

Miscellaneous fish from the catches of shrimp trawlers constitute a major portion of the marine fish catch in India, its quantity in annual landing being of the order of 50,000 tons. At present it is often not brought to the shore since it fetches only very low price. It consists of several species and is a cheap source of animal protein. Attempts are made in India in various centres (Anon. 1972-73) to utilise them effectively by formulating various speciality products acceptable to consumers.

An assessment of handling and processing methods used for the shrimp fishery by-catch in Kalpitiya, Sri Lanka

The by-catch from the shrimp trawl fishery in Kalpitiya is mainly used for the production of dried fish, which provides an additional source of income for fishermen in the area. It has been observed that current handling practices along the value addition chain are responsible for the poor quality and low price of the end product. This study was aimed at identifying the shortcomings in such handling practices by fishermen and dried fish producers and assessing the quality of shrimp fishery by-catch along the processing chain in order to recommend more efficient utilization methods that will improve the quality of the end product. Fresh fish, dried fish and harbour water samples were tested for total coli forms, faecal coliforms, E. coli and Salmonella in order to assess their microbial quality: In addition, standard plate counts (SPC) of fish samples were also carried out. A survey was carried out from July-October 2006 at Kalpitiya, using a pre-tested questionnaire to collect information from individuals who have been engaged in dried fish processing. Average values obtained for freshly landed and dried fish respectively, were, SPC 9.88x10 super(5) CFU/g and 30.43x10 super(5) CFU/g, total coliforms 23.05 and 24.23 MPN/g and fecal coliforms 8.28 and 9.00 MPN/g. These values exceed the recommendations in the SL standards. A quarter of the landed fresh fish and 38% of dried fish from the producers were positive for E. coli and thus failed to show required end product quality. SPC of harbour water was 14.35x10 super(6) CFU/ml and all samples were found to be contaminated with E. coli. None of the fishermen and dried fish producers were satisfied with the quality of the end product. The reasons for poor quality as indicated by them were: limited availability of ice (75%), lack of infrastructure facilities (65%), uncertainty of markets (52%), lack of emphasis on quality (47%) and poor access to available technologies (41%). Respondents to the questionnaire also identified: unavailability of potable water, insulated boxes, good landing jetty, racks for drying fish, poor cold storage facilities and limitations in dried fish storage facilities, as further factors leading to the loss of quality in their products. Results demonstrate that improvements to the infrastructure facilities and conducting of proper awareness programmes on handling practices could lead for improvements in the quality of value added products prepared from the shrimp fishery by-catch at Kalpitiya.

性别、效价及媒体对选择冲突问题解决的影响

Choice conflict is a critical issue in decision making. This study adopted stock transaction as the task to explore the relation between share price level and conflict intensity that the subjects experienced in decision making, and the effect of price level on individual and group choice conflict resolution. The strategy people used to solve choice conflict and gender difference were also examined. Modes of interaction (face to face and through audio media) in group decision making were also studied. The main results are as follows: 1. In individual decision-marking, there is a significant gender effect on decision time. Female subjects will spent more time on the task than male subjects. 2. When making a choice decision, the individual experienced stronger conflict for price shares than for low price shares. The stronger the conflict level they feel, the more difficult to make the choice decision. 3. Four strategies were used to finish the task. Male subjects used simple strategies while female subjects used more complex strategies. 4. In group decision-making, share price level had a significant effect on selection time. People used longer selection time for low price shares than for high price shares. No significant interaction was found between share price level and Modes of interaction. 5. Modes of interaction had significant effect on satisfaction coherence of the group. Under face-to-face condition, people within one group had greater satisfaction coherence. 6. Media had no significant effect on people's perception during the experiment. Satisfaction for cooperation, successful communication and good cooperation were correlated. Self satisfaction and satisfaction of the partners others were also correlated with the satisfaction of the whole task.

The total margin of exposure of ethanol and acetaldehyde for heavy drinkers consuming cider or vodka

Heavy drinkers in Scotland may consume 1600 g ethanol per week. Due to its low price, cider may be preferred over other beverages. Anecdotal evidence has linked cider to specific health hazards beyond other alcoholic beverages. To examine this hypothesis, nine apple and pear cider samples were chemically analysed for constituents and contaminants. None of the products exceeded regulatory or toxicological thresholds, but the regular occurrence of acetaldehyde in cider was detected. To provide a quantitative risk assessment, two collectives of exclusive drinkers of cider and vodka were compared and the intake of acetaldehyde was estimated using probabilistic MonteeCarlo type analysis. The cider consumers were found to ingest more than 200-times the amount of acetaldehyde consumed by vodka consumers. The margins of exposure (MOE) of acetaldehyde were 224 for the cider and over 220,000 for vodka consumers. However, if the effects of ethanol were considered in a cumulative assessment of the combined MOE, the effect of acetaldehyde was minor and the combined MOE for both groups was 0.3. We suggest that alcohol policy priority should be given on reducing ethanol intake by measures such as minimum pricing, rather than to focus on acetaldehyde.

Projecting marine fish production and catch potential in Bangladesh in the 21st century under long-term environmental change and management scenarios

The fisheries sector is crucial to the Bangladeshi economy and wellbeing, accounting for 4.4% of national Gross Domestic Product (GDP) and 22.8% of agriculture sector production, and supplying ca.60% of the national animal protein intake. Fish is vital to the 16 million Bangladeshis living near the coast, a number that has doubled since the 1980s. Here we develop and apply tools to project the long term productive capacity of Bangladesh marine fisheries under climate and fisheries management scenarios, based on downscaling a global climate model, using associated river flow and nutrient loading estimates, projecting high resolution changes in physical and biochemical ocean properties, and eventually projecting fish production and catch potential under different fishing mortality targets. We place particular interest on Hilsa shad (Tenualosa ilisha), which accounts for ca.11% of total catches, and Bombay duck (Harpadon nehereus), a low price fish that is the second highest catch in Bangladesh and is highly consumed by low income communities. It is concluded that the impacts of climate change, under greenhouse emissions scenario A1B, are likely to reduce the potential fish production in the Bangladesh Exclusive Economic Zone (EEZ) by less than 10%. However, these impacts are larger for the two target species. Under sustainable management practices we expect Hilsa shad catches to show a minor decline in potential catch by 2030 but a significant (25%) decline by 2060. However, if overexploitation is allowed catches are projected to fall much further, by almost 95% by 2060, compared to the Business as Usual scenario for the start of the 21st century. For Bombay duck, potential catches by 2060 under sustainable scenarios will produce a decline of less than 20% compared to current catches. The results demonstrate that management can mitigate or exacerbate the effects of climate change on ecosystem productivity.