Papers by Peter Michaelis
Ökologisches Wirtschaften - Fachzeitschrift
Die hohe Flächeninanspruchnahme von gegenwärtig etwa 110 Hektar pro Tag gehört nach wie vor zu de... more Die hohe Flächeninanspruchnahme von gegenwärtig etwa 110 Hektar pro Tag gehört nach wie vor zu den ungelösten Umweltproblemen in Deutschland. Doch der anhaltende Flächenverbrauch kann durch eine Kombination handelbarer Flächenausweisungsrechte und planerischer Instrumente ökonomisch effizient vermindert werden.
The Japanese Economic Review
We study a two-period model of a duopoly with goods differentiated by quality. The periods' lengt... more We study a two-period model of a duopoly with goods differentiated by quality. The periods' length corresponds to the goods' useful lifespan, and consumers are heterogeneous in their valuation of quality. In the second period, the regulator fixes a minimum quality standard based either on the quality supplied by the high-quality firm in the first period (strict regulation) or on the average quality supplied in the first period (average regulation). Assuming a covered market, we show that such an approach leads to decreasing qualities in the first period, and increasing qualities in the second one. In both periods, net utility aggregated over consumers is increasing and profits aggregated over firms are decreasing. Taken together, average regulation always leads to an increase in the present value of welfare, whereas strict regulation can cause a decline. If the discount factor exceeds a certain threshold, a policy based on average regulation is even superior to implementing the optimal minimum quality standard already in the first period.
Environmental Economics and Policy Studies
A growing body of literature from the natural and the social sciences indicates that the rate of ... more A growing body of literature from the natural and the social sciences indicates that the rate of temperature increase is another key driver of total climate damages, next to the absolute increase in temperature compared to the pre-industrial level. Nonetheless, the damage functions employed in integrated assessment models that aim at studying the economics of climate change usually are based solely on the absolute temperature increase. Hence, these models neglect additional damages that will occur if the rate of temperature increase exceeds a certain threshold that overstrains the adaptive capacities of ecological and social systems. In the present paper, we implement such rate-related damages in the well-known integrated assessment model DICE-2016R. Using the resulting model variant DICE-RD, we show for several scenarios that an insufficient climate policy that ignores rate-related damages can lead to substantial economic losses.
Journal of Institutional and Theoretical Economics
We consider a two-periods-model of differentiated duopoly. Firms produce an energy consuming hous... more We consider a two-periods-model of differentiated duopoly. Firms produce an energy consuming household durable differentiated by its energy efficiency. Consumers differ by the weight they apply to their future energy costs when deciding which product to buy. In line with the Japanese Top Runner Program, the regulator introduces a minimum efficiency standard in period t=2 which is fixed according to the efficiency of the product supplied by the high efficiency firm in t=1. We show that in t=1 both firms supply lower efficiency products and the high efficiency firm gains in market share and profits. In t=2 these effects are reversed. Calculated over both periods, total energy consumption does not change. Although there is no ecological effect, total welfare increases because price competition becomes tighter and the cost savings accruing to the consumers exceed the firms' losses in profits.
Review of Economics, 2008
This paper investigates the economic implications of a comprehensive approach to greenhouse polic... more This paper investigates the economic implications of a comprehensive approach to greenhouse policies that strives to stabilise the atmospheric concentration of greenhouse gases at an ecologicaliy determined threshold level. In a theoretical optimisation model conditions for an efficient allocation of abatement effort among pollutants and over time are derived. The model is empirically speeified and adapted to a dynamic GAMS-algorithm. By various Simulation runs for the period of 1990 to 2110, the economics of greenhouse gas aecumulation are explored. In particular, the long-run cost associated with the above stabilisation target are evaluated for three different policy scenarios: i) a comprehensive approach that covers all major greenhouse gases simultaneously, ii) a piecemeal approach that is limited to reducing CO2 emissions, and iii) a tenyear moratorium that postpones abatcment effort until new scientific cvidence on the greenhouse effect will become available. Comparing the Simulation results suggests that a piecemeal approach would considerably increase total cost, whercas a ten-year moratorium might be reasonable even if the probability of 'good news' is comparatively small. The authors are solely responsible for the contents of each Kiel Working Paper. Since the series involves manuscripts in a preliminary form, interested readers are requested to direct criticism and suggestions directly to the authors and to clear any quotations with them.
The present paper develops a model of endogenous policy making where a 'low regulation' party / a... more The present paper develops a model of endogenous policy making where a 'low regulation' party / and a 'high regulation' party h compete for campaign contributions spent by a dominating low-cost firm within a regulated industry. The model shows that assuming an endogenous market structure reinforces the economic impacts of lobbying activities compared to the case of a fixed number of firms. In particular, political competition can lead to a level of regulation where all firms using the high-cost technology decide to leave the market such the dominating firm becomes a monopolist. This outcome is c.p. the more likely, the larger the cost differential between the lobbying firm and its high-cost competitors is, and the less external financial sources like, e.g., governmental grants are available to the political parties. Moreover, ideological'constraints that prevent the low regulation party from taking up its equilibrium position will also increase the probability of monopolisation.
Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.
Discussion Paper Series, May 1, 2004
Dokumentation des 11. Leipziger Umweltrechts-Symposions des Instituts für Umwelt- und Planungsrecht der Universität Leipzig am 4. und 5. Mai 2006, 2007
Uploads
Papers by Peter Michaelis