Replication data for: Pass-Through as a Test for Market Power: An Application to Solar Subsidies
Principal Investigator(s): View help for Principal Investigator(s) Jacquelyn Pless; Arthur A. van Benthem
Version: View help for Version V1
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Project Citation:
Pless, Jacquelyn, and van Benthem, Arthur A. Replication data for: Pass-Through as a Test for Market Power: An Application to Solar Subsidies. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116364V1
Project Description
Summary:
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We formalize pass-through over-shifting as a simple yet underutilized test for market power. We apply this test in the market for solar energy. Specifically, we estimate the pass-through of solar subsidies to solar system prices using rich micro-level transaction and subsidy data from California. Buyers of solar systems capture nearly the full subsidy, while there is more-than-complete pass-through to lessees. We conclude that solar markets are imperfectly competitive by ruling out alternative explanations for over-shifting and reinforce this conclusion with a test of solar demand curvature. This procedure can serve to detect market power beyond the solar market.
Scope of Project
JEL Classification:
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H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H76 State and Local Government: Other Expenditure Categories
L13 Oligopoly and Other Imperfect Markets
L63 Microelectronics; Computers; Communications Equipment
Q42 Alternative Energy Sources
Q48 Energy: Government Policy
H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H76 State and Local Government: Other Expenditure Categories
L13 Oligopoly and Other Imperfect Markets
L63 Microelectronics; Computers; Communications Equipment
Q42 Alternative Energy Sources
Q48 Energy: Government Policy
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