Franz Wirl

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Papers by Franz Wirl

Climate Policies with Private Information: The Case for Unilateral Action

Journal of the Association of Environmental and Resource Economists, Dec 1, 2016

Countries often have private information about their willingness to pay for protecting the climat... more Countries often have private information about their willingness to pay for protecting the climate system and their cost of emission reductions. We use a principal-agent model to re-examine the economic case for unilateral action by individual countries, in our case of the principal. We …nd that the incentive structure that arises in an incomplete information framework can motivate (i) unilateral action before contract negotiations, (ii) optimal contracts in which the principal accepts higher marginal abatement costs for herself, as well as (iii) overcompliance by the principal after the contract has been negotiated. Multilateral externalities and type-dependent outside options, which are characteristic for climate policies, play a crucial role to explain these results.

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Market Penetration of Natural Gas in Europe: Prospects and Impediments

Energy Sources, 1992

ABSTRACT

The impact of introducing seven-day-trading on the Austrian electricity market

Zeitschrift für Energiewirtschaft, Dec 1, 2009

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On the Matthew effect on Individual Investments into Skills in Arts, Sports and Science

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Auction design for gas pipeline transportation capacity—The case of Nabucco and its open season

Energy Policy, Apr 1, 2011

As a response to the Russian dominance of the EU&amp;amp;amp;amp;amp;amp;#39;s natural gas su... more As a response to the Russian dominance of the EU&amp;amp;amp;amp;amp;amp;#39;s natural gas supplies and the EU&amp;amp;amp;amp;amp;amp;#39;s increasing gas demands, major gas pipeline projects are currently under way to enhance the EU&amp;amp;amp;amp;amp;amp;#39;s energy supply security. Oftentimes to raise financing and to allocate gas transportation capacities, auctions are carried out to allow gas shippers to book transportation rights.In recent years, auctions have

Corporate social responsibility: a strategic and profitable response to entry?

Journal of Business Economics, Jul 30, 2014

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Growth and Collapse of Empires: A Dynamic Optimization Model

RePEc: Research Papers in Economics, Mar 1, 2019

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Spreads in International Natural Gas Prices – Explanations and Analysis of Intertemporal Market Equilibrium under (Political) Uncertainty

Energy & the Economy,37th IAEE International Conference,June 15-18, 2014, Jun 15, 2014

• The recent dynamics of natural gas markets are characterized by large spreads in liquefied natu... more • The recent dynamics of natural gas markets are characterized by large spreads in liquefied natural gas (LNG) prices across locations in particular the low prices in the United States (Henry hub) compared with Europe or Japan. • Moreover these differences are forecasted to persist (at a lower level) against the law of one price. • This paper investigates how arbitrageurs will invest accounting for the rational expectation that this arbitrage will be eroded over time by competitive agents’ investments. • These investments face a second kind of risk because governments may intervene and destroy this opportunity in order to protect the interest of local (i.e. U.S.) firms and consumers. • The paper analyzes a corresponding stochastic and dynamic equilibrium that implies a persistence of price differences in spite of an apparent arbitrage opportunity. Wirl & Yegorov Spreads in Gas Price 2

Reducing CO2 emissions of cars in the EU: analyzing the underlying mechanisms of standards, registration taxes and fuel taxes

Energy Efficiency, Sep 28, 2015

Road transport, especially passenger car transport, is one of the largest contributors to greenho... more Road transport, especially passenger car transport, is one of the largest contributors to greenhouse gas emissions. The major elements of the strategy of the European Union (EU) in order to reduce car emissions—such as CO2 emission regulations from new passenger cars, vehicle-related fiscal measures and fuel economy labelling—have not resulted in significant reductions of greenhouse gas emissions over the last two decades. We focus in this paper on the theoretical understanding of how different policy instruments affect the decisions of (rational) consumers with an emphasis on registration taxes. Our major conclusions are as follows: (i) Theoretical analyses of the effects of taxes and standards in car transport are already very informative for policy design, even before quantitative assessments with observed data are available; (ii) CO2 emission standards will not deliver the theoretically possible CO2 reduction due to the rebound effect, and they are questionable for regulating the average car as applied in the context of EU to car manufacturers; (iii) the rebound effect of standards depends on the service price elasticity, which plays also a crucial role how fuel taxes affect demand; the magnitude of the service price elasticity determines which of these instruments is more effective with respect to energy conservation; (iv) combining fuel taxes and standards may allow for a win-win situation for the environment and car drivers but not for the current kind of EU regulation; and (v) a registration tax is equivalent to a standard binding consumers’ decisions (this does not apply to the current EU regulation), in particular, both lead to demand rebounds.

Bifurcation of Energy Development in FSU Countries and the Role of Hydrogen

Springer eBooks, 2022

On the matthew effect on individual investments in skills in arts, sports and science

Journal of Economic Behavior and Organization, Apr 1, 2022

Multiple equilibria and thresholds due to relative investment costs : Non-concave-concave, focus-node, continuous-discontinuous

Other publications TiSEM, 2004

Enhancing the EU’s Energy Supply Security—An Evaluation of the Nabucco Project and an Introduction to Its Open Season Capacity Allocation Process

Zeitschrift für Energiewirtschaft, Apr 17, 2010

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Indeterminancy of open-loop Nash equilibria: The ruling class versus the tabloid press

Institutional Change, Education, and Population Growth: Lessons from Dynamic Modelling

This is one of the first papers that links population growth, education, and institutional change... more This is one of the first papers that links population growth, education, and institutional change within a dynamic optimization. The basic premise is, following interesting papers of Boucekkine with different co-authors dealing with the Arab Spring, that elites manage first the ruling and then the transition to a ‘democratic’ government. We are less optimistic concerning the economic efficiency of domestic resource use and, more importantly, extend this framework by accounting for (endogenous) population growth. These extensions render the survival of any elite much less feasible than without population growth. Only a (cynical) elite worrying about the size of the population allows for a long-run and interior outcome. Therefore, the rulers and the elite have to account for a second phase in which they lose control over a country’s (financial) resources. If the elite lacks sufficient stakes in the second phase, it will ‘take the money and run’, i.e., no investment, at least close to ...

Individuals' valuation of a publicly provided private good evidence from a field study

Journal of Environmental Economics and Policy, 2018

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Corruption in Democratic Systems: A Differential Game between Politicians and the Press

IFAC Proceedings Volumes, 1995

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Iran’s Nuclear Program and the West’s Response: A Game Theoretic Approach

Dynamic Modeling, Empirical Macroeconomics, and Finance, 2016

Iran’s nuclear power program is conceived as a dangerous addition to the already highly explosive... more Iran’s nuclear power program is conceived as a dangerous addition to the already highly explosive situation in the Middle East. This paper proposes a game theoretic model between Iran (to side step the non-proliferation treaty) and the West (imposing sanctions). Our analysis suggests that it requires substantial benefits (a ‘carrot’) offered by the West for Iran to stop its program if the West’s strategy is restricted to (economic) sanctions of a subset of countries. The game is then extended beyond the current conflict in order to understand why Iran chose this kind of a brinkmanship strategy in the first place and whether and if what this choice reveals about Iran’s strength or weakness.

Economics of Talent: Dynamics and Multiplicity of Equilibria

Dynamic Modeling and Econometrics in Economics and Finance, 2016

The economics of art and science differs from other branches by the small role of material inputs... more The economics of art and science differs from other branches by the small role of material inputs and the large role of given talent and access to markets. E.g., an African violinist lacks the audience ( = market) to appreciate her talent unless it is so large that it transgresses regional constraints; conversely, a European violinist of equal talent may be happy to end up as a member of one of the regional orchestras. This paper draws attention to this second aspect and models dynamic interactions between investments into two stocks, productive capital and access (or bargaining power). It is shown that there exists multiple equilibria. The separation between pursuing an artistic career or quitting depends on both idiosyncracies, individual talent and individual market access (including or depending on market size), which explains the large international variation in the number of people choosing a career in arts as market access is affected by geographic, linguistic, and aesthetic dimensions.

Arbitrage in natural gas markets?

International Journal of Energy and Statistics, 2015

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