Power Sector Reforms and Technical Performance: Good News from an Instrumental Variable Analysis

Over the past three decades, various power sector reforms have overhauled the governance of electricity generation, transmission, and distribution in almost a hundred countries. Have these reforms produced benefits? Using instrumental variables, we improve upon earlier studies and demonstrate that power sector reforms enacted between 1982 and 2008 have both had large positive effects on the availability of generation capacity and reduced transmission and distribution losses. We also show that the positive effects on generation capacity are pronounced in developing countries and that hybrid reforms falling short of privatization and free competition are effective in improving generation capacity in particular. Overall, the results show that these reforms are an effective tool to remove an important constraint on economic growth.     

Applying Stone in a Western Landscape: Ranchers,Conservationists, and Causal Stories in the “American Serengeti”

As the emergence of nongovernmental conservation efforts generates conflict among various stakeholders, the causal story that each party articulates regarding conservation and the causes of land degradation reflects their unique interests. This study uses existing literature to evaluate causal stories surrounding a contemporary conservation effort: Montana's American Prairie Reserve. Through qualitative review of web‐based documents and newspaper articles, it generates a preliminary account of key stakeholders' causal stories. The case study suggests that parties who might be disadvantaged by ascribing responsibility for environmental harms in an adversarial fashion may instead elect to articulate causal stories that are more neutral than existing approaches might forecast. The study concludes by suggesting that further development of causal story literature may enable it to better address contemporary conservation efforts.     

Household Costs and Resistance to Germany's Energy Transition

Germany is an exemplary case of an energy transition from nuclear energy and fossil fuels toward renewables in the electricity sector, but it also demonstrates repeated, increasingly successful countermobilization by energy incumbents and their allies. The course for Germany's energy transition was largely set with the adoption of a feed‐in tariff law in 1990, but since then the energy transition has been altered by a series of policy‐making episodes, each of which was shaped by the outcomes of the previous episodes; there has been a combination of reinforcing and reactive sequences. This article uses policy windows and advocacy coalition theory, supplemented by work on resistance to carbon pricing, to analyze the four periods in which opponents of the energy transition had the greatest opportunities to limit or reverse it. It makes three main arguments intended to influence future research on energy transitions: (1) episodes of opposition to the feed‐in tariff policy occurred when problem awareness and political commitment converged, (2) the outcomes of those conflicts depended on the balance of mobilization by advocacy and opposing coalitions, and (3) rising household costs due to the renewable energy surcharge drove both problem awareness and the composition of the opposing coalition, which helped lead to a more far‐reaching retrenchment of renewable energy policy in 2014 than in earlier periods.     

On‐Bill Financing Programs to Support Low‐Carbon Energy Technologies: An Agent‐Oriented Assessment

On‐bill financing (OBF) schemes have been welcomed as innovative mechanisms for encouraging the adoption of low‐carbon energy technologies. Yet while the potential effects of these schemes have received growing attention, less is known about their actual performance. Departing from New Institutional Economics and insights from Behavioral Economics, this theory‐driven assessment examines the How$mart^® program in Kansas (United States) and the Green Deal in the United Kingdom. The study identifies the mechanisms designed to trigger behavioral change and technology adoption. We focus on market agents, and related market failures and behavioral anomalies that often prevent energy efficiency improvements. The paper adds to our theoretical and empirical understanding of public and utility‐driven OBF programs applied to the residential sector. Our findings suggest that simple, carefully designed on‐bill programs, where the financing of efficient technologies takes the form of a service rather than a loan, are more effective for the diffusion of low‐carbon energy technology and the reduction of transaction costs. At the same time, on bill‐financing schemes challenge the core business of utilities, and given the complexities and dynamics of energy efficiency markets and energy use, other policy interventions are needed.