The choice of whether to regulate firms or to allow them to compete is key. If the demand is sufficiently inelastic, competition entails narrower allocative inefficiencies but, also, smaller expected profits and, thus, weaker incentives to invest in cost reduction. Hence, deregulation should be...

As part of a “Regional Initiative on Water Scarcity in the NENA Region”, the U.N. Food and Agriculture Organization (FAO) has been proposing a practical tool for the assessment of investment projects, called the Food Supply Cost Curve (FSCC). This chapter illustrates the concept of the Food...

This paper analyzes the role of storage for economies facing the risk of a gas supply disruption. We characterize the optimal/competitive transitory dynamics (accumulation, drainage and target stock). We partially relax the irreversibility hypothesis, by extending the model in two directions:...

The paper deals with the efficiency and effectiveness of renewable energy support in Europe in order to achieve the target of 20% of final consumption in 2020. The reconciliation of subsidisation of carbon free energy sources and competition in the energy sector creates serious problems to the...

Up to 2008/2009, biofuels were considered one of the best alternatives to oil consumption in a captive market like transports, being one of the pillars of the 20-20-20 initiative in Europe. Improvement of security of supply through partial substitution of imported oil; reduction of GHGs...

This article explores the economic characteristics of the Italian gas storage system. Microeconomic and qualitative methods are used to shed light on past, present and forecasted trends. Notwithstanding the entrenched stagnation of the sector, the analysis highlights a break in trends. The...

For a long time considered as technologically mature, electric systems are now facing a period of rapid changes. The advent of smart grids, smart meters and electromobility is creating new challenges not only in terms of technological innovation but also in terms of economic and technical...

In line with economic theory, carbon ETS determines a rise in marginal cost equal to the carbon opportunity cost regardless of whether carbon allowances are allocated free of charge or not. Hence, common sense would suggest that .rms in imperfectly competitive markets will pass-through into...

Up to today, researches and studies have been focused, from time to time, on the different financial tools through which a bank may affect the environment, with the aim of understanding the drivers and barriers that can influence their adoption and successful implementation.The paper aims at...

Human-generated greenhouse gases depend on the level and emissions intensity of economic activity. Therefore, most climate change studies are based on models and scenarios of economic growth. Economic growth itself, however, is likely to be affected by climate change impacts. These impacts...