Powering Progress: Restructuring, Competition, and R&D in the U.S. Electric Utility Industry

  title={Powering Progress: Restructuring, Competition, and R\&D in the U.S. Electric Utility Industry},
  author={Paroma Sanyal and Linda R. Cohen},
  journal={The Energy Journal},
This paper investigates the R&D behavior of regulated firms when they transition to a competitive environment. Using data from the US electricity market from 1990-2000, we analyze how competition, institutional changes, and political constraints have contributed to the precipitous decline in R&D expenditure by regulated utilities. We find that firms reduce their R&D significantly at the very early stages of restructuring or even when they expect restructuring to occur. Once the emerging… 

Figures and Tables from this paper

The Impact of the Regulatory Reform Process on the R&D Investment of European Electricity Utilities
Abstract The aim of this paper is to provide deeper insights into the impact of regulatory reforms and privatization on the R&D spending of electricity utilities. Building on a novel panel data set
Essays on productivity and efficiency analysis in the U.S. electric utility industry
In the past decade, as the environmental effects of emissions have become better understood, electric utility firms in the United States have faced increasing regulation. Meanwhile, with technology
DRAFT: PLEASE DO NOT QUOTE WITHOUT PERMISSION The Economic Effects of Electricity Deregulation: An Empirical Analysis of Indian States
As developing countries seek to improve their economic prospects, electricity reform has been widely viewed as a central part of this effort. While the focus of most research to date has been at
Diversity in Unity: An Empirical Analysis of Electricity Deregulation in Indian States
As developing countries seek to improve their economic prospects, electricity reform has been widely viewed as a central part of this effort. While the focus of most research to date has been at
Why Do Manufacturing Industries Invest in Energy R&D?
Energy R&D can have major social and economic impacts and is a critical factor in addressing the challenges presented by climate change mitigation policies. As well as the energy utilities


The Relationship between Federal Contract R&D and Company R&D
According to recent estimates, federal budget outlays for research and development (RD this component will rise 28 percent, and absorb 70 percent of all federal R&D spending in 1984, compared to
Market Structure and Firms' R & D Behavior
IN recent years there has been much theoretical discussion and empirical investigation of the factors underlying firms' research and development activities. The relationship between market structure
Determinants of Research and Development Activity by Electric Utilities
This paper develops a model of the determinants of R&D outlays of privately owned electric utilities and tests the model empirically with data for the years 1968 through 1970. The findings are that
Market Design and Price Behavior in Restructured Electricity Markets: An International Comparison
This paper argues that the market rules governing the operation of a restructured electricity market in combination with its market structure can have a substantial impact on the behavior of
R&D, Market Structure, and Profits: A Value-Based Approach
This paper considers a complex relation among R & D, market structure and a market value-based measure of profits. Perhaps of greatest interest, a positive effect of R & D on profits emerges, as does
Do Markets Reduce Costs? Assessing the Impact of Regulatory Restructuring on U.S. Electric Generation Efficiency
While neoclassical models assume static cost-minimization by firms, agency models suggest that firms may not minimize costs in less-competitive or regulated environments. We test this using a
Technological Opportunity and Spillovers of R&D: Evidence from Firms&Apos; Patents, Profits and Market Value
This paper presents evidence that firms' patents, profits and market value are systematically related to the"technological position" of firms' research programs. Further, firms are seen to "move" in
Econometric Tests of the Market Structural Determinants of R&D Investment: Consistency of Absolute and Relative Firm Size Models
This paper examines how the estimated coefficients in firm-level tests of the market structure-R & D hypothesis can be used to determine the effect of market restructuring on expected industry R & D.
Getting on the Map: The Political Economy of State-Level Electricity Restructuring
Retail competition in electricity markets is expected to lead to more efficient electricity supply, lower electricity prices, more innovation by suppliers and a greater variety of electric power
R&D and Unionism: Comparative Evidence from British Companies and Establishments
U.S. research has found that unionization adversely affects research and development investment, consistent with the view that labor unions' rent-seeking activities act as a tax on innovation. In