RESEARCH
JOB MARKET PAPER
Organizational Learning and Technology Adoption in Electricity Firms: Insights for Environmental Compliance
Abstract: This study examines the influence of learning dynamics within multi-plant electricity firms on their compliance with environmental regulations, focusing specifically on technology adoption. It introduces a theoretical framework that frames technology adoption as a strategic choice impacted by operational uncertainty and access to information. The key hypothesis is that cross-plant experience—defined as the number of peer units within the same organization that have adopted a particular technology—enhances adoption rates by facilitating the learning process through spillovers across plants under conditions of technological uncertainty. The analysis uses data from 1,475 generating units spanning 1998 to 2020 to test this hypothesis, particularly focusing on compliance with the U.S. Ozone Transport Rules, which aim to curb NOx emissions and regional ozone transport. Employing a difference-in-difference approach, the study utilizes geographic and temporal variations in policy implementation, while incorporating experience interaction terms and controlling for persistent factors that might bias the results. The findings indicate that firms with extensive cross-plant experience are more likely to adopt new and uncertain technologies, whereas the adoption of established technologies shows less dependence on cross-plant experience. These results underscore the significant role of learning spillovers in shaping compliance strategies and driving technological innovation amidst uncertainty. The paper concludes by discussing the broader implications for environmental policy, particularly highlighting potential issues such as organizational competency traps and inertia that may affect policy design and its effectiveness.
Year of implementation of the Ozone Caps
Policy-induced technology diffusion
Year of implementation of the Ozone Caps
Presented at:
Sustainable Development Colloquium, Columbia University - Year: 2021, 2022, 2023
WORKING PAPERS
10 Years After: Long-term Adoption of Electricity in Rural Rwanda
(with L. Masselus, J. Ankel-Peters, V. Modi, J. Mugyenyi, A. Munyehirwe, N. Williams and M. Sievert) - Working Paper OSF Preprints Submitted to Nature Sustainability
Abstract: Extending the power grid into hitherto unconnected areas is high on the policy agenda in Sub-Saharan Africa. Yet, connection rates and electricity consumption remain low in grid connected areas, at least in the short and medium run. This paper provides a long-term follow-up on an evaluation of a large-scale grid extension program in rural Rwanda. We study the adoption of grid electricity over time using a panel of 41 communities that were electrified up to ten years ago. We find that connection rates for households living near the grid increased from 62% in 2013 to 82% in 2022. At the wider community level, connection rates are much lower, at 51%. Furthermore, electricity consumption levels and appliance usage are low and did not grow over time. We corroborate these findings with administrative consumption data from the utility customer data base. Our findings suggest that investments into grid-based rural electrification cannot be justified by economic development impacts and cost-benefit considerations.
Lower than potential
Limited appliance ownership
Consumption declines over time
Lower than potential
Presented at:
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Sustainable Energy Transitions Initiative (SETI) workshop at EAERE - Year: 2023 - Presenter: Lise Masselus
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European Association of Environmental and Resource Economists (EAERE) Conference, Cyprus -Year: 2022 - Presenter: Lise Masselus
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Environment for Development (EfD) Annual Meeting, Kampala, Uganda - Year: 2022 - Presenter: Lise Masselus
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Energy & Development Research Group Seminar, Duke University - Year: 2022 - Presenter: Lise Masselus
Electricity Consumption: The role of grid reliability in appliance ownership and usage in Rwanda
(with Joel Mugyenyi and Vijay Modi) - CEEP Working Paper 33
Abstract: This study investigates household-level electricity consumption in Rwanda, focusing on the relationship between electricity reliability, residential appliance ownership and usage behaviors. Leveraging a unique dataset and employing instrumental variables for reliability, we explore how households adjust their appliance inventory in response to unreliable grid conditions. Our findings reveal that while electricity reliability affects the types of appliances owned, it does not significantly impact the total number of appliances. Specifically, unreliable electricity reduces, on average, the likelihood of owning low-consumption, affordable devices such as smartphones, TVs, and decoders. Higher-income households in areas with low reliability are more likely to invest in alternative appliances that are less dependent on the grid, such as music systems, while lower-income households tend to favor appliances like sewing machines. Furthermore, our analysis of the conditional electricity demand suggests that reliability has minimal impact on appliance usage among households already possessing appliances. Importantly, income emerges as a major barrier to both appliance ownership and usage. These results suggest that while electricity reliability is an important factor, its impact on residential electricity consumption is limited when affordability constraints due to low income are prominent. This study offers valuable insights for policymakers aiming to enhance residential electricity consumption in Sub-Saharan Africa, emphasizing the need to focus reliability interventions in higher-income areas to maximize benefits.
Share of appliances in Rwanda
Regression results by income
Other economic and social drivers
Share of appliances in Rwanda
Presented at:
Research Symposium, 20th Columbia Africa Conference - Year: 2023 - Presenter: Joel Mugyenyi (Click for more information)
WORK IN PROGRESS
Dynamic Spatial Incentives in Infrastructure Connection Tariffs: Evidence from Sub-Saharan Electrification
(with Eugene Tan)
Environmental Benefits of State Renewable Portfolio Standards: Mitigating Water Use in Power Generation
Learning from Experience and Market Deregulation: Impacts on Firm Behavior and Environmental Performance
Adopting New Technologies in Response to Extreme Whether Events: Implications for Industry Dynamics in US Electricity Markets
PUBLICATIONS
Peer-reviewed:
Other:
AFFILIATIONS
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Sustainable Development Doctoral Society, Columbia University
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Center for Environmental Economics and Policy (CEEP), Columbia University
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Columbia Climate School, Columbia University