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Experimental test of the effect of imposing a penalty on buyers in a specific market

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conference contribution
posted on 06.12.2017, 00:00 by Galina Williams
Using experimental economics tools this paper is testing one of the potential pitfalls in the renewable energy certificates (RECs) market in Australia. Stylised experiment highlighted that sellers' knowledge of the existence of the penalty to buyers for non compliance with mandatory requirements to have a certain number of RECs and the level of penalty in the duopoly market on supply side can push prices for unit of RECs higher than would occur in competitive market without penalty. The level of penalty was used by sellers as a "focal" point for setting the price for the unit.

Funding

Category 1 - Australian Competitive Grants (this includes ARC, NHMRC)

History

Parent Title

51st Annual Australian Agricultural and Resource Economics Society Conference, Queenstown, New Zealand, 13-16 February, 2007

Start Page

1

End Page

24

Number of Pages

24

Start Date

01/01/2007

Location

Queenstown, New Zealand

Publisher

Australian Agricultural and Resource Economics Society

Place of Publication

Australia

Peer Reviewed

No

Open Access

No

External Author Affiliations

Conference; Faculty of Business and Informatics;

Era Eligible

No

Name of Conference

Australian Agricultural and Resource Economics Society. Conference.

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