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. Consolidation can increase market power, but economies of scale, which we derive from physical principles, lead to more efficient data transmission. Estimating our model with French consumer and infrastructure data, we find that while prices decrease with more firms, so do download speeds. Consumer surplus is maximized at seven firms, but fewer firms would improve total surplus and welfare for high-income consumers. Wealso use our framework to assess the impact of another aspect of market structure: the allocation of spectrum.