Jonathan Elliott

This paper explores how to reduce emissions from electricity generation while preventing blackouts. Zero-emissions wind and solar are intermittent, which can lead to blackouts if the entry of renewables causes more reliable power plants to retire. I build a structural dynamic oligopoly model of investment in generators of different energy sources. Using data from Western Australia I show that a combination of carbon taxes and capacity subsidies substantially reduces emissions while keeping reliable generators from retiring, thereby maintaining a low risk of blackouts. I also explore the impact of renewable subsidies and delaying an environmental policy's implementation.

We develop a model of competition in prices and infrastructure among mobile network operators. Although consolidation increases market power, it can lead to more efficient data transmission due to economies of scale, which we derive from physical principles. After estimating our model with French consumer and infrastructure data, equilibrium simulations reveal that while prices decrease with the number of firms, so do download speeds. Our framework also allows us to quantify the impact of spectrum allocation. The marginal social value of spectrum exceeds firms' willingness to pay in our model as well as observed prices in spectrum auctions.