Isamu Matsukawa | Musashi University (original) (raw)

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Papers by Isamu Matsukawa

This chapter investigates the impact of environmental taxation and subsidization on non-polluting... more This chapter investigates the impact of environmental taxation and subsidization on non-polluting renewable power plants. Their dispatch is prioritized in a wholesale electricity market in which oligopolistic firms produce electricity both from polluting fossil-fuel inputs and non-polluting renewable energy sources, and competitive fringe firms produce electricity only from non-polluting renewable energy sources. To examine the welfare impacts of levying a tax on emissions of pollutants from fossil-fuel power plants and granting subsidies to renewable power plants, this chapter develops a three-stage model with the endogenous capacity of renewable power plants, forward contracts on electricity, and the operation of fossil-fuel power plants. An emission tax imposed on fossil-fuel use is expected to discourage firms from operating their fossil-fuel power plants, thereby promoting substitution of renewable energy sources for fossil-fuel inputs. A subsidy provided to firms building rene...

This chapter investigates how acquiring information from in-home displays (IHDs) affects electric... more This chapter investigates how acquiring information from in-home displays (IHDs) affects electricity usage through attention and learning, using the experimental data on the frequency of consumers’ use of IHDs in summer 2012 and winter 2012/2013. Households in the treatment group could see a graph of their half-hourly electricity consumption in real time with IHDs at any time during the experiment. The immediate effect of IHDs is heightened household attention to information on electricity consumption, and the repetition of attention is expected to improve households’ capacity to process information in the long run. The estimation results of the daily time-of-day electricity consumption model indicate statistically significant and persistent effects of IHD use on residential electricity consumption. The increase in IHDs’ effects along with households’ experience of using IHDs implies that households’ capacity to process information could be improved by the repetition of attention to...

Research Papers in Economics, 2005

This paper conducts a welfare analysis of a two-part tariff that is applied to the congestion pri... more This paper conducts a welfare analysis of a two-part tariff that is applied to the congestion pricing of inputs supplied by a natural monopolist with increasing returns to scale to competitive firms that require an input in a fixed proportion to output. Congestion pricing of inputs is optimal for both the welfare-maximizing regulator and the profit-maximizing monopolist if it is applied in the form of a uniform price for the input. However, a two-part tariff for the congestion pricing of inputs is optimal if competition in the downstream market is imperfect or if there is demand uncertainty in the market.

ABSTRACT Thesis (Ph.D. in Economics)--University of Tsukuba, (B), no. 1260, 1997.3.24 The use of ... more ABSTRACT Thesis (Ph.D. in Economics)--University of Tsukuba, (B), no. 1260, 1997.3.24 The use of electricity touches every aspect of daily life. The electrification of the Japanese economy has led to a better quality of life and contributed to the improvement of economic efficiency. While the demand and supply of electricity is one of ... http://www.tulips.tsukuba.ac.jp/mylimedio/dl/page.do?bookid=1058933

This chapter assesses the impact of applying critical peak pricing (CPP), in-home displays (IHDs)... more This chapter assesses the impact of applying critical peak pricing (CPP), in-home displays (IHDs), and home energy reports (HERs) to consumers living in the Kansai region based on the empirical results of field experiments presented in the previous chapters. For CPP, households with standard and all-electric contracts in the Kansai region are assumed to have paid peak prices ranging from 65 to 105 U.S. cents/kWh (1 U.S. dollar = 100 yen) for 16 days in summer 2013 and 21 days in winter 2013/2014. On these days, these households are assumed to use IHDs once a day. The combination of CPP and IHDs would have reduced residential electricity usage during the peak period by approximately 15.0 % in summer 2013 and 19.7 % in winter 2013/2014. Overall, the effects of CPP together with IHD usage on the peak electricity demand (kilowatt) would be far larger than the effects of the government’s call for a voluntary reduction. HERs are expected to reduce residential electricity consumption, thus...

This paper investigates the long-run effects of average revenue regulation of a transmission sect... more This paper investigates the long-run effects of average revenue regulation of a transmission sector on economic efficiency of power markets where a transmission tariff consisting of unit price of congestion and fixed access fee is applied to the usage of the transmission facilities. An economic analysis of average revenue regulation indicates that a binding constraint on the expected average revenue of the profit-maximizing transmission monopolist lowers the access fee unless the probability of rationing becomes unity. A numerical example illustrates the possibility that the expected social welfare under average revenue regulation is higher than that under the cost of service regulation.

Using data from a series of field experiments for the fiscal years 2012–13, this chapter investig... more Using data from a series of field experiments for the fiscal years 2012–13, this chapter investigates consumers’ electricity use in response to critical peak pricing (CPP) and conservation requests (CRs). CPP stimulates consumers’ extrinsic motivation to conserve energy by applying higher prices to electricity usage during peak periods. This is a plausible approach since electricity pricing affects the monetary reward of conservation and higher prices create conservation that is more beneficial. By asking households to voluntarily reduce consumption during peak periods, CRs stimulate intrinsic motivations, such as altruism and the “warm glow,” which enhance consumers’ utility through energy conservation. The empirical results based on a linear approximate almost ideal demand system imply that both CPP and CRs contributed to reducing electricity usage during peak periods. In absolute terms, the elasticity of the peak electricity demand with respect to the electricity price at the sam...

Market power in emissions trading markets has been extensively investigated as emerging markets f... more Market power in emissions trading markets has been extensively investigated as emerging markets for tradable emissions permits such as EU ETS could be sufficiently dominated by a number of large sellers or buyers. Previous studies on market power in emissions trading assume the existence of a subset of competitive players (Sturm, 2008). A key feature of emissions trading markets, however, is that emissions permits are often traded by a limited number of large sellers and buyers. Thus, both sellers and buyers can influence the market price in their favor, and emissions trading markets could be well described by a model of bilateral oligopoly where every trader can exercise market power. The aim of our study is to examine whether a model of bilateral oligopoly is appropriate for predicting market outcomes of emissions trading.

Resource and Energy Economics

Energy Studies Review

This paper attempts to measure the benefits of information about efficient usage of electric appl... more This paper attempts to measure the benefits of information about efficient usage of electric appliances consumers receive through energy conservation, using data from a Japanese experiment. In the experiment, households could easily obtain information on how to achieve efficient usage of electric appliances through a display installed at their residence. The data were used to estimate a utilityconsistent, discrete−continuous model of display usage and electricity demand. Full information maximum likelihood estimates of a translog indirect utility function and electricity cost share function indicate that information provision contributed to energy conservation and to welfare improvements of consumers in the experiment.

SpringerBriefs in Economics, 2016

Industrial Organization, 2005

This paper investigates the long-run effects of average revenue regulation on an electricity tran... more This paper investigates the long-run effects of average revenue regulation on an electricity transmission monopolist who applies a two-part tariff comprising a variable congestion price and a non-negative fixed access fee. A binding constraint on the monopolist's expected average revenue lowers the access fee, promotes transmission investment, and improves consumer surplus. In a case of any linear or log-linear electricity demand function with a positive probability that no congestion occurs, average revenue regulation is allocatively more efficient than a Coasian two-part tariff if the level of capacity under average revenue regulation is higher than that under a Coasian two-part tariff.

Others, Feb 1, 2005

This paper attempts to measure the benefits of information about efficient usage of electric appl... more This paper attempts to measure the benefits of information about efficient usage of electric appliances consumers receive through energy conservation, using data from a Japanese experiment. In the experiment, households could easily obtain information on how to achieve efficient usage of electric appliances through a display installed at their residence. The data were used to estimate a utility-consistent, discrete-continuous model of display usage and electricity demand. Full information maximum likelihood estimates of a tranlsog indirect utility function and electricity cost share function indicate that information provision contributed to energy conservation and to welfare improvements of consumers in the experiment.

I investigate the impacts of voluntary time-of-day (TOD) rates on residential demand for electric... more I investigate the impacts of voluntary time-of-day (TOD) rates on residential demand for electricity. My analysis is based on a sample of a survey, which provides cross-sectional data on electricity consumption and economic/demographic features for both TOD and non-TOD households in Japan. This information is used to develop an almost ideal demand system for the TOD electricity consumption during the summer. The results show that (1) household response to the high price of the peak period is relatively modest, and (2) the relative magnitudes of the price and selection effects depend on the ownership of water heaters.

Research Papers in Economics, 2005

Resource and Energy Economics

Energy Studies Review

SpringerBriefs in Economics, 2016

Industrial Organization, 2005

Others, Feb 1, 2005

This paper attempts to measure the benefits of information about efficient usage of electric appl... more This paper attempts to measure the benefits of information about efficient usage of electric appliances consumers receive through energy conservation, using data from a Japanese experiment. In the experiment, households could easily obtain information on how to achieve efficient usage of electric appliances through a display installed at their residence. The data were used to estimate a utility-consistent, discrete-continuous model of display usage and electricity demand. Full information maximum likelihood estimates of a tranlsog indirect utility function and electricity cost share function indicate that information provision contributed to energy conservation and to welfare improvements of consumers in the experiment.