The effect of coal combustion byproducts on price discrimination by upstream industries

Price discrimination is often difficult to disentangle from price dispersion due to a lack of transaction level data capable of tracking sales from individual companies to quantifiably heterogeneous groups of consumers. This paper uses mine-mouth prices and transportation prices paid by regulated coal-fired power plants in the U.S. coal market during the time period 2009–2010 to study how coal mines and transportation companies practice price discrimination against electricity plants. Power plants with heterogeneous demand for coal are perfectly identified based upon their ability to market flue-gas desulfurization (FGD) gypsum, which is a byproduct produced from scrubbing SO₂ emissions. Because sulfur is the raw material for FGD gypsum byproduct production, gypsum sellers are anticipated to have a more inelastic demand for high-sulfur coal. Results indicate that coal mines and transporters charge higher prices to gypsum sellers in comparison to non-sellers for transactions originating at the same mine during the same month of the same year. Coal-fired power plants capable of selling FGD gypsum byproducts are estimated to pay a 10.3–39.6 ¢/MMBtu price premium for coal. Coal mines and transportation companies each capture a relatively equal share of the associated rents.     

Soft drink prices,sales, body mass index and diabetes: Evidence from a panel of low-, middle- and high-income countries

We take advantage of four different cross-country datasets containing data on 78 countries for the period 1999–2014, in order to assess the relationship of carbonated soft drinks’ sales, as well as their prices, with body mass index (BMI), overweight, obesity and diabetes. Using an ecological study design and multivariate regression longitudinal estimation approaches, we find that carbonated soft drink sales were significantly positively related to BMI, overweight and obesity – but only in the low and lower-middle income countries. This finding was robust to a number of sensitivity and falsification checks. In this sub-sample, an increase in per capita soft drink sales by 1 litre per year was related to an increase of BMI by about 0.009 kg/m² (p < 0.1).. This is a small effect, implying that halving annual consumption per capita in this group of countries would result in a drop of BMI by only about 0.03 kg/m². Although soft drink prices were negatively related to weight-related outcomes in the sample of higher middle income and high income countries, this finding was not robust to falsification checks. The results thus suggest that sales restrictions to steer consumers away from soft drinks could indeed have a beneficial health effects in poorer countries, although the effect magnitude appears to be very small. However, given potential limitations of using ecological research design, results from individual level studies would be required to further ascertain the role of soft drink sales and prices in obesity and diabetes.     

The consumer loss of the minimum duration for mobile telephone calls

This article estimates price elasticities of demand for the duration of mobile telephone calls for Portugal, as well as the monetary loss per consumer of the existence of a minimum duration of calls. The demand for the duration of calls is estimated using a Tobit model for panel data with individual random effects. The elasticity of demand is found to be small and to vary across firms. At current prices, the average duration of calls ranges between 101 and 109 s, while the estimated average length of calls without minimum duration ranges between 63 and 66 s. Hence, the existence of a minimum duration for calls results in a monetary loss of 35–40% of the average invoice.     

Estimation of Search Frictions in the British Electricity Market

This paper studies consumer search and pricing behavior in the British domestic electricity market following its opening to competition in 1999. We develop a sequential search model in which an incumbent and an entrant group compete for consumers who find it costly to obtain information on prices other than from their current supplier. We use a large data set on prices and input costs to structurally estimate the model. Our estimates indicate that consumer search costs must be relatively high in order to rationalize observed pricing patterns. We confront our estimates with observed switching behavior and find they match well.     

Estimating demand elasticities using nonlinear pricing

Nonlinear pricing is prevalent in industries such as health care, public utilities, and telecommunications. However, this pricing scheme introduces bias into estimating elasticities for welfare analysis or policy changes. I develop a local elasticity estimation method that uses nonlinear price schedules to isolate consumers' expenditure choices from selection and simultaneity biases. This method improves over previous approaches by using commonly-available observational data and requiring only a single general monotonicity assumption. Using claims-level data on health insurance with two nonlinearities, I am able to measure two separate elasticities, and find that elasticity declines from − 0.26 to− 0.09 by the second nonlinearity. These estimates are then used to calculate moral hazard deadweight loss. This method enables estimation of many policies with nonlinear pricing which previous tools could not address.     

Pharmaceutical followers

We estimate a model of drug demand and supply that incorporates insurance, advertising, and competition between branded and generic drugs within and across therapeutic classes. We use data on antiulcer drugs from 1991 to 2010. Our simulations show that generics and “me-too” drugs each increased consumer welfare more than $100 million in 2010, holding insurance premiums constant. However, insurance payments in 2010 fell by nearly $1 billion due to generics and rose by over $7 billion due to me-too antiulcer drugs.     

Validating the usage of household food acquisition surveys to assess the consumption of ultra-processed foods: Evidence from Brazil

Our ability to research dietary changes over time and their effects on health is limited by challenges in accurately measuring food consumption. In countries where dietary surveys are scarce and rarely nationally representative, household budget surveys may serve as a useful alternative for assessing food consumption. The objective of this study was to evaluate how well household acquisition data reflects the actual intake of ultra-processed foods, using data from the 2008 to 2009 Brazilian Household Budget Survey. The food acquisition module was conducted for all households selected for the survey (n = 55,970) and a subsample corresponding to 25% of the households (n = 13,569) was randomly selected for the individual food intake module, which was conducted for all individuals aged 10 years or older (n = 34,003). Ultra-processed foods were defined as formulations made by the food industry mostly or entirely from substances extracted from foods or obtained with the further processing of constituents of foods or through chemical synthesis, with little if any whole food. Examples included candies, cookies, chips, sugar-sweetened beverages, and ready-to-eat dishes. Our results showed an important agreement between the estimates of ultra-processed food consumption obtained from household acquisition data and individual intake inside-the-home data, particularly for the relative (% of total energy) consumption of these foods. Our study thus indicates that household budget surveys are quite promising for tracking population-level changes in the consumption of ultra-processed foods. The trend toward increased consumption of food away from home in other low- and middle-income countries indicates that future household budget surveys should include the collection of these data.     

Potential impacts of increasing average yields and reducing maize yield variability in Africa

This study evaluates the potential impacts of investing in Drought Tolerant Maize (DTM) in 13 countries of East, South and West Africa. The analysis utilizes geo-referenced production data at the regional and household levels and employs a model that estimates both the conventional mean yield gains and the additional benefits from yield stability gains of DTM varieties as well as impacts on poverty. The results indicate that by 2016, adoption of DTM can generate between US$ 362 million and US$ 590 million in cumulative benefits to both producers and consumers. Yield variance reductions stand to generate considerable benefits, especially in high drought risk areas. These benefits translate into poverty reductions in the range of 0.01–4.29% by 2016. Significant benefits are also found among different types of households living in drought risk areas of Kenya, Ethiopia and Nigeria.     

Global developments in the competition for land from biofuels

The potential global demand for biofuels and the implications of this for land use and its interaction with food agriculture is reviewed. It is expected that biofuels will form an important element of global transport energy mix (in the order of 20–30% of total requirement) over the next 40 years and beyond. Over this time, there will be a transition from so called first generation biofuels, based on commodity agricultural crops with food/feed uses, to advanced biofuels, sometimes called second and third generation biofuels, based primarily upon lignocellulosic feedstocks. It remains unclear whether these advanced biofuels, based on lignocellulosic materials, will entirely replace first generation or if second generation will be supplemental to first generation. This expansion in biofuels will be coupled to a substantial increase in alternative fuels (electricity, hydrogen, biogas and natural gas) and modal shifts. Biofuel production from agricultural commodity crops that exhibit strong sustainability criteria will remain important (e.g. sugarcane) with supportive and competitive aspects for food security.Land requirement projections estimated for a range of potential biofuel development trajectories range widely and are inherently uncertain. Under the most active scenario that delivers substantive greenhouse gas reductions in transport by 2050 (relative to 2005 levels), approximately 100 Mha of additional land is projected. In the ‘business-as-usual’ scenario, in which transport energy demand rises by 80% by 2050 from present levels, a land use requirement of 650 Mha is projected.Significant potential exists for producing biofuels that possess high productivity and sustainability profiles through continued research, development and demonstration. Policy and regulation at a global level, that focuses biofuel development on these goals in ways that are synergistic with food agriculture, will simultaneously help to decarbonise transport and maintain a diverse and financially robust agricultural (and forestry) sector.     

Estimating the demand for ADSL and ISDN services in Greece

The aim of this paper is to investigate the demand for broadband services in Greece and to estimate the price elasticity of the demand for ADSL and ISDN services as well as the cross-price elasticity between the two services. The empirical analysis uses the 384 kbps connections since for the period examined, over 85% of the total ADSL customers in Greece are connected at this bandwidth. The empirical analysis is based on an ad-hoc specification of the demand equation, with no reference to the utility maximization problem of the representative consumer. The results of the analysis show that both demands are inelastic. In addition, cross-price elasticity for ADSL is negative, indicating that ISDN is a complement to ADSL, whereas the demand for ISDN is almost neutral to ADSL.     

European dietary patterns and their associated land use: Variation between and within countries

This paper determines the cropland use associated with the dietary patterns of 16 European countries and investigates sources of variation in land use between and within these countries. The analysis combines food availability data at the household level with country-specific land use data for food items. The household food availability data is obtained from a standardized and post-harmonized databank, developed in the Data Food Networking Project (DAFNE). The results show large differences between the land use of the 16 European countries, ranging from ±1500 m² (Ireland) to ±3000 m² (Malta) to supply an average person’s food demand. Major reasons for this divergence include disparities in total caloric food availability and in national yields. The composition of the diet is only a minor source of variation. Using food consumption data at the household level makes it also possible to look for sources of variation within countries. This paper investigates sources of variation within countries by examining the influence of education of the household head on land use associated with food consumption. The analysis shows that diets of people with only elementary education need on average 20% more land than diets of people with a higher education (2302 m² and 1948 m², respectively). The basis of this difference is the higher caloric availability for people with only an elementary education; the influence of differences in the composition of the diet is negligible. Variation in land use between countries is thus caused by the different agricultural productivities and caloric availabilities, and the major source of variation within countries is the caloric availability. The composition of the diet is only a minor source of variation, both between and within countries. The results implicate that highly educated people have a lower demand for land.     

The effect of using consumption taxes on foods to promote climate friendly diets – The case of Denmark

Agriculture is responsible for 17–35% of global anthropogenic greenhouse gas emissions with livestock production contributing by approximately 18–22% of global emissions. Due to high monitoring costs and low technical potential for emission reductions, a tax on consumption may be a more efficient policy instrument to decrease emissions from agriculture than a tax based directly on emissions from production. In this study, we look at the effect of internalising the social costs of greenhouse gas emissions through a tax based on CO₂ equivalents for 23 different foods. Furthermore, we compare the loss in consumer surplus and the changed dietary composition for different taxation scenarios. In the most efficient scenario, we find a decrease in the carbon footprint from foods for an average household of 2.3–8.8% at a cost of 0.15–1.73 DKK per kg CO₂ equivalent whereas the most effective scenario led to a decrease in the carbon footprint of 10.4–19.4%, but at a cost of 3.53–6.90 DKK per kg CO₂ equivalent. The derived consequences for health show that scenarios where consumers are not compensated for the increase in taxation level lead to a decrease in the total daily amount of kJ consumed, whereas scenarios where the consumers are compensated lead to an increase. Most scenarios lead to a decrease in the consumption of saturated fat. Compensated scenarios leads to an increase in the consumption of added sugar, whereas uncompensated scenarios lead to almost no change or a decrease. Generally, the results show a low cost potential for using consumption taxes to promote climate friendly diets.     

Irrigation potential and investment return in Kenya

The potential for irrigation investments in Kenya is highly dependent upon geographical, agronomic and economic factors that need to be taken into account when assessing the long-term viability and sustainability of planned projects. This study analyzed large dam-based and small-scale irrigation potential and investment needs for Kenya based on agronomic, hydrological, and economic factors. The analysis of small-scale irrigation expansion shows that the potential for investment in small-scale projects in Kenya ranges from 54,000 ha to 241,000 hectares, with an internal rate of return from 17% to 32%. For the dam-based investment analysis, under low-cost assumption, 58 dams of 73 are profitable (IRR > 0). At high cost level, the number is 52. If we raise the IRR cutoff value to 12%, 32 dams are economically feasible. We showed that there is considerable scope for the expansion of both dam-based and small-scale irrigation in Kenya, and we also provided a strategic prioritization for investments in irrigation schemes and projects.     

Impacts of the 1996 Telecommunications Act on the US model of telecommunications policy

The 1996 Telecommunications Act provides mechanisms for all parties to pursue their interests. For instance, the Act incorporates two different and complementary approaches: (a) it authorizes all operators to operate in businesses from which they were previously excluded. (b) it incorporates some legal procedures and regulatory constraints, that provide parties with tools to defend their territories, excluding other operators. A striking example is the ‘competitive checklist’ for RBOCs to enter the interLATA long distance market.The undesired result of this approach is both the creation of enormous business opportunities for lawyers and a stalemate, because all parties have been quite successful in adopting defensive strategies to block others’ initiatives. This has happened to the detriment of offensive moves that, as everyone hoped, would have increased competition in all markets and, as a consequence, the availability of innovative high quality services for the public at low prices.Analysis of the US regulatory model in the telecommunications sector, and in particular the specific studies carried out in three States, have led to a series of conclusions that can provide guidelines on the type of issues and some possible solutions with regard to telecommunications liberalization, relationships between different levels of regulation (e.g. federal/State), operator&rsquo; strategic moves in response to regulation. The analysis of the US model, even though it is very much related to country-specific conditions, allows us to isolate some issues that other countries, and among them Italy, will be likely to face in the short term.     

Making personalised nutrition the easy choice: Creating policies to break down the barriers and reap the benefits

Personalised diets based on people’s existing food choices, and/or phenotypic, and/or genetic information hold potential to improve public dietary-related health. The aim of this analysis, therefore, has been to examine the degree to which factors which determine uptake of personalised nutrition vary between EU countries to better target policies to encourage uptake, and optimise the health benefits of personalised nutrition technology. A questionnaire developed from previous qualitative research was used to survey nationally representative samples from 9 EU countries (N = 9381). Perceived barriers to the uptake of personalised nutrition comprised three factors (data protection; the eating context; and, societal acceptance). Trust in sources of information comprised four factors (commerce and media; practitioners; government; family and, friends). Benefits comprised a single factor. Analysis of Variance (ANOVA) was employed to compare differences in responses between the United Kingdom; Ireland; Portugal; Poland; Norway; the Netherlands; Germany; and, Spain. The results indicated that respondents in Greece, Poland, Ireland, Portugal and Spain, rated the benefits of personalised nutrition highest, suggesting a particular readiness in these countries to adopt personalised nutrition interventions. Greek participants were more likely to perceive the social context of eating as a barrier to adoption of personalised nutrition, implying a need for support in negotiating social situations while on a prescribed diet. Those in Spain, Germany, Portugal and Poland scored highest on perceived barriers related to data protection. Government was more trusted than commerce to deliver and provide information on personalised nutrition overall. This was particularly the case in Ireland, Portugal and Greece, indicating an imperative to build trust, particularly in the ability of commercial service providers to deliver personalised dietary regimes effectively in these countries. These findings, obtained from a nationally representative sample of EU citizens, imply that a parallel, integrated, public-private delivery system would capture the needs of most potential consumers.     

Consumer knowledge and use of information about fish and aquaculture

This paper explores consumers’ knowledge about fish and aquaculture and assesses the use and importance of different information cues about fish. Cross-sectional data were collected in 2008 through a consumer survey (n = 3213) in the Czech Republic, Germany, Greece, Italy, Portugal, Romania, Sweden and the UK. Consumers’ knowledge about fish generally, and about aquaculture in particular, was relatively low and differed significantly between countries. Consumers from all countries reported an indication of quality and/or food safety as an information cue when buying fish. The information sources most frequently used by Europeans were labelling and sellers in retail or supermarkets. The Internet was identified by consumers in all of the countries as one of the most important sources of information about sea and freshwater fish products. Policy makers and food marketers are encouraged to develop a simple and easily recognisable mark (relating to quality, food safety and nutrition) to assist consumer decision-making. Information campaigns focusing on issues such as the nutritional benefits of eating fish are also recommended.     

Impact of metal silos on households’ maize storage,storage losses and food security: An application of a propensity score matching

Maize is the most important food staple in Eastern and Southern Africa, with a highly seasonal production but relatively constant consumption over the year. Farmers have to store maize to bridge seasons, for food security and to protect against price fluctuations. However, the traditional storage methods do not protect grain well, resulting in large postharvest losses. Hermetically sealed metal silos kill storage pests by oxygen deprivation without pesticides. Popular in Central America, they are now being promoted in Africa, but their impact here has not yet been studied. This study used propensity score matching to evaluate the impact of metal silos on duration of maize storage, loss abatement, cost of storage, and household food security. Metal silo adopters (N = 116) were matched with non-adopting farmers from a representative sample of 1340 households covering the major maize-growing zones in Kenya. The major effect of the metal silos was an almost complete elimination of losses due to insect pests, saving farmers an average of 150–200 kg of grain, worth KSh9750 (US$130). Metal silo adopters also spent about KSh340 less on storage insecticides. Adopters were able to store their maize for 1.8–2.4 months longer, and to sell their surplus after five months at good prices, instead of having to sell right after the harvest. The period of inadequate food provision among adopters was reduced by more than one month. We conclude that metal silos are effective in reducing grain losses due to maize-storage insects, and that they have a large impact on the welfare and food security of farm households. The initial cost of metal silos is high (KSh20,000/1.8 ton) and therefore policies to increase access to credit, to reduce the cost of sheet metal, and to promote collective action can improve their uptake by smallholder farmers.     

Consumers' quality choices during demand peaks

In a number of product categories, average prices decrease when demand exogenously increases. The literature disagrees on whether this effect is due to firms' reactions to high demand or to changes in consumer behavior. I propose a strategy that enables the identification of supply and demand movements by examining unpredictable and short-lived exogenous demand shocks. During these periods, firms do not have time to adjust pricing or advertising strategies, and most activity comes from changes in consumer behavior. My model shows that during periods of exogenous high demand, consumers migrate toward cheaper, lower-quality products. I focus on ice cream purchases, which have a seasonal peak during the summer and increase during less-predictable periods of unseasonably high temperatures. Using individual-level data, I test model implications and estimate structural parameters, finding evidence consistent with consumers' quality shifts. I also reject alternative supply-side theories' explanations for the main drivers of the observed price dynamics.     

Effective product-service systems: A value-based framework

Manufacturers increasingly engage in servitization and as a result offer services in combination with their products (i.e., product-service systems, PSS). However, while servitization in theory seems to be a promising strategy, in practice, the bundling of services with product offerings does not always result in the expected performance outcomes. In this paper, we propose a framework that helps manufacturers to overcome this servitization paradox. The underlying premise of our framework is the need to give primacy to the value customers derive from PSS. The framework builds on the idea that products and services differ with regard to the value that is created by the tangible elements and the interaction moments between manufacturers and customers; this is presented in a 2 × 2 matrix. Subsequently, this paper provides guidelines for identifying PSS that are effective in terms of value creation. First, the product and service elements of the PSS should have sufficient autonomous value to be sold separately on the market. Secondly, they should come from different quadrants of the 2 × 2 matrix. Lastly, the combination of product and service elements should create synergy. Through a survey among product and service developers and an experimental auction among customers we validate our ideas.     

Food demand studies in Sub-Saharan Africa: a survey of empirical evidence

The recent empirical food demand studies on Sub-Saharan Africa show significant advances in demand specification and methodology, especially in the application of less restrictive and theoretically consistent flexible functional forms. The findings to date establish some broad patterns on effect of income, household demography and life cycle, location, and prices on food demand patterns. However, the numerical values of the demand estimates are less generalizable because of an insufficient number of data points to separate the true demand component from other confounding factors, which are linked to differences in modeling and estimation of demand relations. The priority for future research is to generate sufficiently detailed demand estimates that have a high utility for disaggregated policy analysis, but are based on a theoretically consistent and comparable methodology.