Cournot seminar – Oliver Schenker (ZEW – Leibniz Centre for European Economic Research)

Event details :

We are pleased to welcome to the next session of the BETA Cournot seminar organised with the support of the FSEG on Friday 06/03 at 2:00pm:

Oliver Schenker (ZEW – Leibniz Centre for European Economic Research)

who will present his paper entitled

Spillovers from Plant-Differentiated Energy Efficiency Regulation in the Indian Cement Sector

Abstract: If heterogeneous shocks affect a subset of firms only, depending on market structure, standard equilibrium theory predicts an adjustment of all firms on the market. This makes any evaluation of policies directly addressing only a subset of firms non-trivial since outcomes are conditional on the equilibrium behaviour of the untreated competitors. Using the Indian PAT program, a policy to reduce energy intensity of only large plants in the cement sector, we develop a model which accounts for these treatment spillovers. Our estimates suggest significant treatment spillovers, leading to increasing output of untreated plants. Controlling for these spillovers, the program reduced energy consumption by around 20%, saving around 2 Mtoe of energy annually.