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When Does Regulation Distort Costs? Lessons from Fuel Procurement in US Electricity Generation: Comment

Author

Listed:
  • Jin Soo Han
  • Jean-François Houde
  • Arthur A. van Benthem
  • Jose Miguel Abito

Abstract

We revisit one of the results in Cicala (2015) and show that the previously estimated large and significant effects of US electricity restructuring on fuel procurement are not robust to the presence of outliers. Using methodologies from the robust statistics literature, we estimate the effect to be less than one-half of the previous estimate and not statistically different from zero. The robust methodology also identifies as outliers the plants owned by a single company whose coal contracts were renegotiated before discussions about restructuring even started.

Suggested Citation

  • Jin Soo Han & Jean-François Houde & Arthur A. van Benthem & Jose Miguel Abito, 2021. "When Does Regulation Distort Costs? Lessons from Fuel Procurement in US Electricity Generation: Comment," American Economic Review, American Economic Association, vol. 111(4), pages 1356-1372, April.
    • Handle: RePEc:aea:aecrev:v:111:y:2021:i:4:p:1356-72
    DOI: 10.1257/aer.20200679
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    Cited by:

    1. Vilhuber, Lars, 2023. "Reproducibility and transparency versus privacy and confidentiality: Reflections from a data editor," Journal of Econometrics, Elsevier, vol. 235(2), pages 2285-2294.

    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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    1. When Does Regulation Distort Costs? Lessons from Fuel Procurement in US Electricity Generation: Comment (AER 2021) in ReplicationWiki

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