1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar

Products: Tarui, Nori

Keep up to date with the latest UHERO products.

RECENT POSTS

Identifying priority watershed management areas for groundwater recharge protection on Hawai‘i Island

Identifying priority watershed management areas for groundwater recharge protection on Hawai‘i Island

Identifying priority watershed management areas for groundwater recharge protection on Hawai‘i Island

Identifying priority watershed management areas for groundwater recharge protection on Hawai‘i Island

Identifying priority watershed management areas for groundwater recharge protection on Hawai‘i Island

Identifying priority watershed management areas for groundwater recharge protection on Hawai‘i Island

Charting a New Fiscal Course for Hawaii: A Fiscal Architecture Approach

Charting a New Fiscal Course for Hawaii: A Fiscal Architecture Approach

Charting a New Fiscal Course for Hawaii: A Fiscal Architecture Approach

Annual Hawaii Forecast with Global Outlook: After a Cloudy 2019, New Year Looks a Bit Brighter


--> */?>
CATEGORIES

ALL CATEGORIES


Forecasts

Media

UHERO Briefs

Annual Reports

Hawaii's Economy

Hawaii's Environment

Hawaii's People

Project Environment

UHERO Working Papers

Arik, Aida

Bonham, Carl

Bremer, Leah

Brucal, Arlan

Burnett, Kimberly

Cintina, Inna

Coffman, Makena

Endress, Lee

Energy Policy & Planning Group

Environmental Valuation

Food and Agriculture

Fripp, Matthias

Fuleky, Peter

Gangnes, Byron

Garboden, Philip

Governing Green Power

Halliday, Timothy

Hirashima, Ashley

Housing

Invasive Species

Jones, James

Kato, Andrew

Konan, Denise

Kwak, Sally

LaCroix, Sumner

Lee, Sang-Hyop

Leung, PingSun

Love, Inessa

Lynham, John

Mak, James

Olney, Will

Page, Jonathan

Presentations

Project UH

Roberts, Michael

Roumasset, James

Russo, Gerard

Sustainability

> Tarui, Nori

UHERO Reports

Wada, Christopher

Water Resources

Wee, Sherilyn


ARCHIVE

February 2020

January 2019

January 2018

February 2017

January 2016

January 2015

January 2014

July 2013

April 2012

February 2011

June 2010

April 2009

May 2008

June 2007

February 2006

November 2005

March 2004

July 2003

October 2002

May 2001

April 2000

December 1999

February 1998

April 1997

October 1996

March 1995


*/?>

Revenue Decoupling for Electric Utilities: Impacts on Prices and Welfare

Under traditional (cost-of-service) electric utility regulation, regulated utilities may not recover their fixed costs when their sales are lower than expected. Revenue decoupling (RD) is a mechanism that allows price adjustments so that the regulated utility recovers its required revenue. This paper investigates the welfare and distributional impacts of RD. Theoretically, we find that the excess burden of subsidies for distributed generation is larger with RD than without. Contrary to how RD is specified on dockets in many states, electricity prices appear to demonstrate downward rigidity, while statistically significant upward adjustments on average are observed across utilities that experienced decoupling. We also find empirically that RD has generated negative welfare effects in most states even if we consider the social marginal costs of electricity generation given different energy mix across regional markets.

Working Paper


Electric Utility Regulation Under Enhanced Renewable Energy Integration and Distributed Generation

The economic environment for electric utilities is changing in the United States given increased penetration of distributed generation and limited rooms for sales growth. This paper reviews the recent development of relevant policies in the United States and their economic impacts. This review indicates both challenges and opportunities in improving the policies to enhance distributed generation, and in finding the directions in which electric utility regulation should be reformed.

WORKING PAPER


Efficient Design of Net Metering Agreements in Hawaii and Beyond

In Hawaii, like most U.S. states, households installing rooftop solar photovoltaic (PV) systems receive special pricing under net-metering agreements. These agreements allow households with rooftop solar to buy and sell electricity at the retail rate, effectively using the larger grid to store surplus generation from their panels during sunny times and return it when the sun isn’t shining. If a household generates more electricity than it consumes over the course of a month, it obtains a credit that rolls over for use in future months. Net generation supplied to the grid in excess of that consumed over the course of a full year is forfeited to the utility. 

Project Report


Intergenerational Games with Dynamic Externalities and Climate Change Experiments

Dynamic externalities are at the core of many long-term environmental problems, from species preservation to climate change mitigation. We use laboratory experiments to compare welfare outcomes and underlying behavior in games with dynamic externalities under two distinct settings: traditionally studied games with infinitely-lived decision makers, and more realistic intergenerational games. We show that if decision makers change across generations, resolving dynamic externalities becomes more challenging for two distinct reasons. First, decision makers’ actions may be short-sighted due to their limited incentives to care about the future generations’ welfare. Second, even when the incentives are perfectly aligned across generations, increased strategic uncertainty of the intergenerational setting may lead to an increased inconsistency of own actions and beliefs about the others, making own actions more myopic. Access to history and advice from previous generations may improve dynamic efficiency, but may also facilitate coordination on noncooperative action paths.

WORKING PAPER


Why Does Real-Time Information Reduce Energy Consumption?

A number of studies have estimated how much energy conservation is achieved by providing households with real-time information on energy use via in-home displays. However, none of these studies tell us why real-time information changes energy-use behavior. We explore the causal mechanisms through which real-time information affects energy consumption by conducting a randomized-control trial with residential households. The experiment disentangles two competing mechanisms: (i) learning about the energy consumption of various activities, the “learning effect”, versus (ii) having a constant reminder of energy use, the “saliency effect”. We have two main results. First, we find a statistically significant treatment effect from receiving real-time information. Second, we find that learning plays a more prominent role than saliency in driving energy conservation. This finding supports the use of energy conservation programs that target consumer knowledge regarding energy use.

Published version: Lynham, J., Nitta, K., Saijo, T., & Tarui, N. (n.d.). Why does real-time information reduce energy consumption? Energy Economics. http://doi.org/http://dx.doi.org/10.1016/j.eneco.2015.11.007

Working Paper

 

 


Payment schemes in random-termination experimental games

We consider payment schemes in experiments that model infinite-horizon games by using random termination. We compare paying subjects cumulatively for all periods of the game; with paying subjects for the last period only; with paying for one of the periods, chosen randomly. Theoretically, assuming expected utility maximization and risk neutrality, both the cumulative and the last period payment schemes induce preferences that are equivalent to maximizing the discounted sum of utilities. The last-period payment is also robust under different attitudes towards risk. In comparison, paying subjects for one of the periods chosen randomly creates a present-period bias. Experimentally, we find that the cumulative payment appears the best in inducing long-sighted behavior.

WORKING PAPER


Learning-by-catching: Uncertain invasive-species populations and the value of information

This paper develops a model of invasive species control when the species’ population size is unknown. In the face of an uncertain population size, a resource manager’s species-control efforts provide two potential benefits: (1) a direct benefit of possibly reducing the population of invasive species, and (2) an indirect benefit of information acquisition (due to learning about the population size, which reduces uncertainty). We provide a methodology that takes into account both of these benefits, and show how optimal management decisions are altered in the presence of the indirect benefit of learning. We then apply this methodology to the case of controlling the Brown Treesnake (Boiga irregularis) on the island of Saipan. We find that the indirect benefit—the value of information to reduce uncertainty—is likely to be quite large.

Published: D'Evelyn, S. T., Tarui, N., Burnett, K. and Roumasset, J. A., 2008. Learning-by-catching: Uncertain invasive-species populations and the value of information.  Journal of Envrionmental Management, 89, 284-292.

working paper version