Contentious debate surrounds allocation of the geostationary orbit and electromagnetic spectrum, two resources used by communications satellites. An extensive economics literature alleges that the nonmarket administrative allocative procedures now in place are highly inefficient, but no research has empirically estimated the welfare loss. This paper develops a conceptual framework and a computerized model to estimate the economic value of the resources, the size and distribution of welfare costs associated with the present regulatory regime, and the potential gains from more market-like allocation.
Resources Radio: Energy Inefficiency, with RFF's Joshua Blonz
Host Daniel Raimi and Joshua Blonz, a postdoctoral fellow at RFF, talk about his recent research on an energy efficiency program in California, the...
The Welfare Costs of Misaligned Incentives: Energy Inefficiency and the Principal-Agent Problem
I measure the welfare costs of the principal-agent problem in the context of an energy efficiency appliance upgrade program. I find that the principal-agent problem turns an otherwise welfare-increasing program into a welfare-reducing program.
Buyer Beware: An Analysis of the Latest Flawed Carbon Tax Report
Not all economic analyses are created equal. Those that do not meet fundamental scientific standards should be ignored by policymaking communities.