Promoting customer engagement: A new trend in utility regulation

This paper traces a new development in regulation that encourages utilities to engage more directly with their customers. We make four contributions: First, we perform a comprehensive analysis of how regulators are using customer engagement, and offer a simple model for understanding different customer engagement initiatives. Second, we review assessments of customer engagement. We find that there are no quantitative, empirically robust assessments of the effectiveness of customer engagement as a regulatory tool. Third, we develop two detailed case studies of an energy regulator and a water regulator that are in the forefront of customer engagement efforts. We find that there is no direct link between the engagement strategy used and the economic incentives received by a firm. Finally, we propose a framework for improving the customer engagement process. The new framework relies on microeconomics, modern tools of program evaluation, and supplying the regulated firm with direct incentives to engage with the customer.     

The economic significance of “insignificant” rules

We know relatively little about the economic effects of “insignificant” rules because they are not typically analyzed. Yet, these rules could be cumulatively important. We provide an economic analysis of one proposed rule to control hazardous air pollutants, which is not considered to be economically significant. This rule is of particular interest because it is one of the first in a long series of rules that Environmental Protection Agency (EPA) will consider for limiting hazardous air pollutant emissions. Our analysis suggests that the proposed controls that EPA has considered are not likely to pass a benefit–cost test. We recommend that an agency base its decision to allocate additional resources to benefit–cost analysis on the expected value of the improved information. In addition, agencies should consider applying a rule of thumb that would specify a threshold level of risk reduction that needs to be achieved before some kinds of regulation are considered.     

The political economy of environmental regulation: Towards a unifying framework

There are several theories that attempt to explain various aspects of environmental policy. Building on insights from this theoretical work, and recent advances in our understanding of instrument performance, this paper constructs a more complete theory of environmental regulation. There are two primary contributions of this research. The first is to provide more satisfactory explanations for a number of observed patterns of environmental policy. For example, there is, as yet, no satisfactory theory about the emergence of incentive-based mechanisms, such as marketable permits and effluent fees. The second contribution of this paper is to develop a parsimonious framework for understanding many important aspects of environmental policy. This framework suggests the outputs of environmental policy emerge from a struggle between key interest groups.This research was supported by the National Science Foundation. I would like to thank Gordon Hester for helpful comments. Responsibility for the final product rests solely with the author.     

Genipin--a novel fingerprint reagent with colorimetric and fluorogenic activity

Genipin, the hydrolytic product of geniposide, which is extracted from gardenia fruit, shows good potential as a fingerprint reagent. It develops latent fingerprints on paper as blue impressions with good contrast and resolution. Even very faint impressions that are barely visible in ambient light will fluoresce brightly upon illumination at ca. 590 nm and are best viewed with a barrier filter above 630 nm. Potential advantages of genipin are the combination of colorimetric and fluorogenic activity in one reagent as well as its being a safe and environmentally friendly natural product.     

An assessment of the determination of energy needs: The case of nuclear power

The National Environmental Policy Act (NEPA) forced the Atomic Energy Commission, and subsequently the Nuclear Regulatory Commission, to weigh costs and benefits of proposed nuclear power plants. This paper examines how the Commission has developed a framework for decision making in response to the NEPA mandate. Its principal conclusions are that the Nuclear Regulatory Commission is not interested in being in the business of assessing power needs, and that regulating need by electricity source is counterproductive. If the question of power needs should be addressed at all, the paper argues that a more general framework should be used which would apply to all new facilities. Such a framework would allow a utility to build the plant of its choice, subject to satisfaction of existing regulations, after it is determined that sufficient demand exists.This research was supported in part by the National Science Foundation and the Environmental Quality Laboratory at Caltech. An earlier version of this paper was presented at the Conference on the Economics of Nuclear Power Regulation at the Brookings Institution. I wish to thank Roger Noll, James Krier and Gary Miller for their helpful comments. Any remaining errors are solely my responsibility.     

Local Politics and Political Power in Russia: The Case of Yaroslavl'

An American political scientist surveys local political reforms in Russia as they were proposed in 1988-1989 and implemented in 1990-1991. Using the city and provincial governments of Yaroslavl' as a case study, the author examines whether old political elites have shown themselves capable of adapting to the new political rules and retaining influence over local decision making. The paper then assesses differences in the strength of this influence in rural and urban areas and consequences of the power struggle between old and new political elites for Russian President Yel'tsin's reform program. Journal of Economic Literature, Classification Numbers: P20, H1.     

Attention to Counter-Attitudinal Messages in a State Election Campaign

Research following the "selective exposure" model has focused on avoidance of political messages with which a person might disagree. But positive attention to such "counter-attitudinal" messages is worthy of study, in part because normative theories of democracy value exposure to information that might disturb citizens' political predispositions. Surveys of youth (N = 417) and parents (N = 430) examine attention to newspaper, television, and Web messages about candidates. While there is somewhat more attention to messages about and for a person's favored political candidate or party, forms of political involvement (knowledge, curiosity, and discussion) that predict this "attitude-consistent" attention also predict counter-attitudinal attention at least as strongly. Parents' education and students' exposure to civics lessons also predict both kinds of attention. These results suggest that attention to counterattitudinal political messages is worthy of further study as an important goal of political socialization and a criterion of citizen performance in democracy.