This paper measures credit risk in prime money market funds (MMFs), studies how such credit risk evolved in 2011-2012, and tests the efficacy of the Securities and Exchange Commission’s (SEC) January 2010 reforms. To accomplish this, we estimate the credit default swap premium (CDS) needed to...

This paper proposes a dynamic carbon tax (DCT) that stabilises gasoline prices by adjusting inversely to crude oil prices. Compared to a standard fixed-rate carbon tax, the DCT can be expected to cut more CO2 emissions while receiving greater public support. Therefore, it could be a useful...

Electricity demand traditionally exhibits a substantial peak during a small number of hours each day. Policymakers are aware of the potential efficiency savings that may be generated from a shift in energy consumption away from peak times. Smart meters, in conjunction with time-of-use (TOU)...

When judging the distributional impact of a sin tax, what matters is not just how much low income people would pay but how much the tax would benefit or harm them overall. In this paper we assess the consumer welfare impact of a fat tax net of its expected benefits computed as savings from...

Market power often emerges in wholesale electricity markets. Regulators use several strategies to limit market power: adopting bidding rules, compulsory forward markets and enhancing demand response. We study the case of the Irish Single Electricity Market (SEM), where the market will eliminate...

The European Union has set ambitious targets for expanding renewable energy to meet emission reduction goals. After a period of subsidy-driven investments, the costs of renewables decreased strongly and renewable support schemes shift towards more market-based approaches. We therefore analyse...