Energy and Environmental Markets, Industrial Organization, and Regulation (WP-21-41)
Ryan Kellogg and Mar ReguantThis paper discusses contributions that industrial organization economists have made to our understanding of energy markets and environmental regulation. Kellogg and Reguant emphasize the substantive contributions of recent papers while also highlighting how this literature has adopted and sometimes augmented theoretical and empirical tools from industrial organization. Many of the topics examined by this literature—especially auctions, investment, productivity and innovation, and regulation—also apply to a variety of settings beyond energy and the environment. The authors also indicate areas where future research is likely to be fruitful, with an emphasis on how industrial organization economists can help inform energy and environmental policies.