New Working Paper from SEBE colleagues Magnus Soderberg and Yingkui Yang on responsiveness of electricity network prices to scholarly outputs
Does published research influence policy outcomes? The case of regulated electricity networks in western Europe
in Scandinavian Working Papers in Economics
This study investigates the relationship between number of articles about electricity network regulation published in peer-reviewed journals and actual electricity network prices. Data on published articles are sourced from ScienceDirect and network prices are provided by Eurostat. Different empirical approaches give the same result, namely that an increase in the number of published articles reduces the regulated network price. When articles are highly relevant, one additional article published per year reduces the price by at least 10%. Results also show that the influence on prices is delayed and the effect lasts for a few years. A survey is sent out to regulators to better understand if the relationship can be interpreted as causal. Responses reveal that regulators do access and incorporate relevant research into their work. Considering the cost required to continuously publish relevant articles, research seems to be a highly effective complement to more traditional regulatory work.