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1. Recycling Regime, Environment, and Exclusion of Electronic Scrap Workers in Delhi

Author:
Gayatri Jai Singh Rathore
Publication Date:
11-2026
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales (CERI)
Abstract:
In recent years, the Indian e-waste sector has undergone a process of formalisation through the implementation of E-waste Management Rules (2016), leading to the creation of what I call recycling regime. The upper and middle classes, along with NGOs and industry actors, are frontrunners in thinking about e-waste policies. They were prompted by a twofold motive: the desire for a “world-class”, clean, and pollution-free city; and seizing business opportunities by extracting value from e-waste. Rather than replacing the State, they co-opted the State so that it would legislate to safeguard the environment, and address toxicity and health problems associated with e-waste. Recycling regime relies on formalisation processes embedded in multiple technologies – technicity, capital-intensive facilities, certifications, authorisations, and licences – that work together to exclude the “informal” sector from the e-waste governance system. Recycling technologies act as “technologies of domination” that further contribute to sidelining the “informal” labour of scrap workers or e-kabadis, who as Muslims already find themselves on the margins of society. However, the recycling regime fails to safeguard the environment in the end as e-waste trickles down back to the informal sector via authorised actors.
Topic:
Civil Society, Economics, Environment, Globalization, Health, Markets, Poverty, Governance, Law, Urbanization, Emerging States, and Norms
Political Geography:
South Asia and India

2. The Polish Economy 2023 and Beyond: How to Mend Home Loans

Author:
Andrzej Reich, Dariusz Filar, and Michal Polasik
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Center for Social and Economic Research - CASE
Abstract:
The subject of this publication, reflecting the discussion held between experts on 30 March 2023, is that of housing loans in Poland. The publication focuses primarily on discussing the state of mortgages (at the end of the first quarter of 2023). This state is the effect of (a) legislation, (b) institutional solutions, (c) past processes in the financing of housing loans, and recently also (d) the high level of inflation dampening both lending by the banks and the level of interest among bank customers. The publication's second purpose is to present recommendations which, once put into effect, could rectify today’s lamentable situation. All of the proposals presented in this publication lead to one general recommendation: the answer to the current shortcomings lies not in isolated, single changes; what is essential is a new system for the market. This new system should be (a) flexible, (b) free of legal risk while at the same time (c) better protected against market risk, and (d) it should also contain a more comprehensive range of products; on this market (e) the state, as the regulator, should intervene ex-ante and not only ex-post (as has been the case in Poland for the last 20 years), while (f) customers should have the essential minimum of financial knowledge, first and foremost regarding awareness of the risk related to, which by their very nature are long-term loans.
Topic:
Markets, Economy, Interest Rates, Risk, Mortgages, Banking, Loans, and Financial Education
Political Geography:
Europe and Poland

3. How Safe is Eastern Mediterranean Gas?

Author:
Colby Connelly, Gregory Brew, and Karen Young
Publication Date:
01-2024
Content Type:
Video
Institution:
Middle East Institute (MEI)
Abstract:
The Middle East Institute (MEI) hosted an on-the-record briefing to discuss the security of offshore gas fields in the Eastern Mediterranean, and the state of the international gas market given the ongoing tension and conflict in the Middle East.
Topic:
Security, Markets, Gas, and Conflict
Political Geography:
Middle East and Eastern Mediterranean

4. India’s Service Sector: New Areas for Future Cooperation

Author:
Hyoungmin Han
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Given the growing significance of the Indo-Pacific region, the strategic importance of India is on the rise. With its considerable population and economic potential, India offers many opportunities for cooperation in various sectors. However, past cooperation between Korea and India has focused on the manufacturing sector. In order to consolidate economic ties be-tween Korea and India and to access the growing Indian market, cooperation in various industries, including services, is necessary. In this article, we will explore key aspects of India’s service industry and policy implications for better cooperation between two countries.
Topic:
Economics, International Cooperation, Markets, Bilateral Relations, and Manufacturing
Political Geography:
South Asia, India, South Korea, and Indo-Pacific

5. The Russia Factor in China’s Relations with the West

Author:
Klaus W. Larres and Lea Thome
Publication Date:
04-2024
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
Tension between China and the Western world has been a characteristic of global affairs for the better part of the last decade. Notwithstanding Russia’s full-scale invasion of Ukraine in February 2022, the United States continues to view China as its greatest global rival and competitor. In fact, many policymakers in Washington (though by no means all of them) view China as an existential threat to America’s global influence and predominance. As the European Union and its 27 member states are not among the world’s superpowers, the Europeans have a somewhat more relaxed attitude toward China. Still, according to an important policy statement issued by the EU Commission in 2019, Brussels has come to see Beijing not only as a “partner and competitor” but also as a serious “systemic rival.” This refers less to geopolitical concerns but very much to global governance issues and geoeconomic, trade, and investment relations with China. The EU is deeply concerned about the continuing lack of reciprocity of market access, intellectual property theft, and China’s frequently state-subsidized competition regarding cutting-edge technology products, including solar panels, EV vehicles, and many other products, which may soon swamp the EU market. The EU Commission has launched an investigation into China’s production of EV vehicles and also Beijing’s shipbuilding industry, which it suspects may well work on the basis of rather unfair and highly subsidized support from the Chinese state.
Topic:
Foreign Policy, Markets, Geopolitics, Economy, Strategic Competition, and Production
Political Geography:
China, Europe, Asia, and United States of America

6. The Battle for Green Supremacy: Carbon Markets, Artificial Intelligence, and the Problem of Climate Finance

Author:
Carlos Roa and Shubham Dwivedi
Publication Date:
04-2024
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
Observe the bee as it pollinates flowers, fruits, vegetables, and a wide variety of other crops; according to the United Nations’ Food and Agriculture Organization, around one-third of the world’s food production depends on their little wings. Watch as the beaver builds its dam, shaping the landscape of its local environment. Its pond stores carbon, improves water quality, creates a suitable habitat to support biodiversity, and helps reduce climate impacts. One cannot help but conclude that some higher order guides the work of these and other creatures; someone or something seems to be managing the delicate ecology of our world. Unfortunately, human beings are not as adept at such complex environmental management. As the world increasingly bears witness to the dramatic effects of climate change, the urgency for decisive action has never been more critical. With the planet’s average temperature continuing to rise, resulting in more frequent, severe, and unusual weather events, the global community faces a stark reminder of the imperative to mitigate this environmental degradation. The upcoming UN Climate Change Conference in Baku (COP29) represents a pivotal moment for states to commit to ambitious strategies and deepen international collaboration in the fight against climate change. At the forefront is the pressing need to explore and affordably implement effective mechanisms that can significantly reduce carbon emissions on a global scale.
Topic:
Markets, Climate Finance, Artificial Intelligence, and Carbon Emissions
Political Geography:
Global Focus

7. Competing Ideas: Canada’s Competition Reform Conversation

Author:
Vass Bednar and Keldon Bester
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
The Government of Canada’s recent review of and updates to the Competition Act have sparked a closer examination of how competition is protected and promoted in Canada. Competition affects all Canadians, especially in the face of rising costs of living and a shrinking number of competitors in key markets. Yet the laws that govern competition are not easily understood by average consumers, leaving them out of the public policy conversation. This paper looks at why better competition law is needed and examines previous reform efforts.
Topic:
Markets, Reform, Public Policy, and Competition
Political Geography:
Canada and North America

8. Is Guanxi Changing? Referral Hiring and Social Networks in China

Author:
Elena Obukhova and Yao Lu
Publication Date:
04-2024
Content Type:
Video
Institution:
Weatherhead East Asian Institute, Columbia University
Abstract:
What is the role of guanxi in China today? To answer this question, Professor Elena Obukhova examines the relationship between social networks and referral hiring. In the first study, she compares China and the US. In the second study, she explores differences between China’s provinces. This event is part of the 2023-2024 lecture series on “Labor Market Transformations in China" and is hosted by the Weatherhead East Asian Institute and cosponsored by Columbia's China Center for Social Policy.
Topic:
Markets, Labor Issues, Social Networks, and Hiring
Political Geography:
China, Asia, and United States of America

9. Market power and merger control in South Africa

Author:
C. Friedrich Kreuser, Michael Kilumelume, and Rulof Burger
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We estimate structural, materials, and labour markups for the South African economy at the three-digit industry level for 2012–19. The fall in structural labour and materials markups found for the numerical majority of industries are generally isolated to smaller industries, with industries accounting for a higher proportion of sales generally experiencing smaller downward shifts. We show that materials-based markups are increasing over this period. Upward markup pressure in structural and labour markups are primarily driven by compositional shifts of surviving firms, while materials markup growth is driven by the average firm in a given sector. We show that merger intensity is positively related to structural markup growth, with a 1% increase in the proportion of cumulative mergers over 2013–18 being related to around a 0.27% increase in structural markup growth over the period from 2012 to 2019. We find that large vertical mergers are positively related to structural and materials markup growth while being negatively related to labour markup growth. Large horizontal mergers generally increase labour and structural markups.
Topic:
Markets, Economy, Industry, and Mergers and Acquisitions
Political Geography:
Africa and South Africa

10. The flaws in project-based carbon credit trading and the need for jurisdictional alternatives

Author:
Byron Swift, Ken Berlin, George Frampton, and Frank Willey
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
This issue brief highlights several significant, and at times unresolvable, problems with the project-based approach to carbon credit trading, the purpose of which is to reduce deforestation and sequester carbon. Beginning with first-hand observations of the principal author during his experience with forest conservation efforts in the tropics, the brief describes the challenges that arise when this crediting model is implemented in the field, particularly in rainforests and other remote areas of the world. The publication then assesses the three critical structural problems with project-based credit trading that lead to a fundamental lack of integrity in such programs: The intractable challenges of a project-based regulatory structure involving difficult-to-prove requirements of additionally and leakage prevention. The major transaction and intermediary costs that can amount to half of project funding. The credit duration that is far less than the life of the additional CO2 emissions that are consequently emitted. The analysis also explains how economic forces and incentives exacerbate these problems, particularly with programs that are carried out by commercial credit traders as opposed to nonprofit entities. Finally, this brief discusses better alternatives, such as jurisdictional programs administered by governments or Indigenous associations, that could more effectively reduce emissions and strengthen the social fabric of communities required to assure credit integrity, accurate measurement, and adequate co-benefits.
Topic:
Climate Change, Environment, Markets, Governance, Carbon Emissions, Energy, and Energy Transition
Political Geography:
Global Focus

11. Digital services for e-government: opportunities for a future 2.5 billion African demographic market

Author:
Nii Simmonds
Publication Date:
06-2024
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
In partnership with Africa Development Solutions (ADS) Group, the Africa Center released a report on “Digital services for e-government: Opportunities for a future 2.5 billion African demographic market” by Atlantic Council, GeoTech Nonresident Senior Fellow, Nii Simmonds. This report argues that e-government solutions have the potential to revolutionize service delivery across the African continent. E-government services refers to the process of providing technology-enabled public services. With Africa’s population projected to reach 2.5 billion people by 2050, nearly one-quarter of the world’s population, countries like Egypt, Ethiopia, Nigeria, Kenya, and the Democratic Republic of Congo will need to strengthen their government and infrastructure to manage the administration of critical services. As the middle class continues to expand, so will the demand for access to everyday services such as healthcare, renewing a driver’s license, and filing tax returns. This report highlights the potential for growth in African markets through e-governance and the importance having strong policies and frameworks in place to secure data. Additionally, the report offers case studies on Estonia, Canada, and India, three countries that have made tremendous commitment to bridging the gap between citizens and government through digital service delivery. With key recommendations for institutions ranging from African governments and regional bodies to DFIs and private sector companies, it is clear that each have an important role to play in the digitization of public services in Africa.
Topic:
Government, Markets, Economy, Business, and E-Government
Political Geography:
Africa

12. How Huawei Weathered the Storm: Resilience, Market Conditions or Failed Sanctions?

Author:
Hosuk Lee-Makiyama and Robin Baker
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Huawei is exhibiting stoic resilience in the face of US sanctions, economic downturns, and the slow pace of 5G investments. There is a narrative that the company has been propped up by the Chinese government, but the key to Huawei’s resilience is multifaceted. Through pre-emptive stockpiling and ingenuity, the company has continued to fulfil its base station orders and defend its market shares abroad. Concurrently, Huawei has made an autonomous business decision to reinvest its earnings and intensify R&D to secure its supply chains against political risks and diversify into new business areas. Successful forays into semiconductors, cloud services and energy grids have also been facilitated by a capital structure that lends itself to long-term planning. Huawei’s survival is not necessarily a lesson in the futility of sanctions to stifle technological progress. However, it does show that muddled political objectives and inconsistent implementation will yield potentially contrary outcomes. At the same time, factors that contribute to Huawei’s resilience also highlight the infighting and vulnerabilities of listed firms like Mavenir, Ericsson and Nokia.
Topic:
Markets, Sanctions, Digital Economy, Resilience, and Huawei
Political Geography:
China, North America, and United States of America

13. Trading Up: An EU Trade Policy for Better Market Access and Resilient Sourcing

Author:
Fredrik Erixon, Oscar Guinea, Philipp Lamprecht, Oscar du Roy, Elena Sisto, and Renata Zilli
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Europe’s competitiveness could be substantially improved by a trade policy that facilitates more trade and other forms of cross-border exchange. The evidence is clear: the EU trades less with the rest of the world than would be expected given the size of its economy. With 85 percent of global growth happening outside of the EU – and with an increasing share of all new technologies, innovations, patents, human capital, and R&D expenditure emerging in other parts of the world than Europe – the EU needs to find better ways to integrate with international markets. It is now becoming urgent for the EU to revive its international trade policy. Europe’s increasing detachment from global markets lead to two major economic concerns: deteriorating market access and less capability to build economic resilience. Market access can be defined as an export challenge, as EU firms face increasing trade barriers that hinder their ability to sell products and services abroad. These barriers ultimately limit the EU’s ability to scale up production, specialise, and increase R&D spending. Economic resilience is an import challenge. To become more resilient, the EU must diversify its sources of supply, particularly for critical raw materials, and secure a stable and frictionless access to foreign high-end goods, services, and technologies. The next five years present a critical opportunity for the EU to address the challenges limiting the contribution of international trade to EU’s competitiveness. This Policy Brief outlines seven trade policy recommendations that tackle the lack of market access and address the need for economic resilience. These policy recommendations are there for the EU to take: they are realistic and achievable. The EU has the power to make these seven policy recommendations a reality.
Topic:
Markets, Treaties and Agreements, European Union, Trade, and Resilience
Political Geography:
Europe

14. Keeping Up with the US: Why Europe’s Productivity Is Falling Behind

Author:
Fredrik Erixon, Oscar Guinea, and Oscar du Roy
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The European Union stands at a crossroads. For decades, the EU’s productivity growth has consistently lagged the United States, leading to slower growth in living standards and decline in global economic power. While short-term factors like the strong US fiscal expansion have widened the gap in nominal GDP growth in recent years, the fact is that Europe has trailed the US economic development for several decades and the root of the problem lies in deeper structural issues within the European economy. Four major forces fuel this productivity divide. Firstly, the EU’s investment in research and development (R&D) pales in comparison to the U.S., leading to fewer patents and a slower pace of technology-fuelled innovation. Secondly, Europe trails America in the stock and growth of intangible capital investments, which are crucial for adopting and diffusing new technologies that drive productivity. Thirdly, the EU market exhibits slower business creation and destruction compared to the US. This rigidity hinders the flow of resources towards the most productive firms. Lastly, despite boasting higher levels of trade openness, the EU attracts less Foreign Direct Investment (FDI) than the US, curbing its access to cutting-edge global technologies and expertise. To close the gap, European policymakers should implement a comprehensive strategy for faster productivity growth. The first step is turning up the dial on R&D spending, targeting 4-5 percent of GDP by 2040. Next, Europe should prioritise investments in intangible assets and lay down the digital infrastructure that will underpin future growth. Revitalising the single market is also crucial: reducing internal and external market barriers for services, the primary vehicle for trading intangible assets. Moreover, the EU should foster a market environment that encourages entrepreneurship and facilitate the entry and exit of firms so resources cascade towards the most productive sectors. By harnessing the strengths of the single market and implementing these recommendations, European policymakers can propel the EU towards a more competitive and prosperous future.
Topic:
Markets, European Union, Productivity, and Economic Competition
Political Geography:
Europe, North America, and United States of America

15. Reinventing Europe’s Single Market: A Way Forward to Align Ideals and Action

Author:
Matthias Bauer, Dyuti Pandya, Vanika Sharma, and Elena Sisto
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
It is essential for EU institutions and Member State governments to shift their focus from the abstract concept of the “Single Market” to the concrete objective of “legal harmonisation in the EU.” This transition represents a strategic realignment towards more pragmatic policymaking. Adopting a 28th regime to address national regulation discrepancies would align with this goal and enhance the Single Market’s effectiveness in promoting economic growth and competitiveness. Given the EU’s ongoing loss of relative global economic clout, it is crucial to establish an ambitious timeline for implementing the most critical Single Market reforms. The Letta Report serves as a wake-up call to revitalise the EU’s Single Market, emphasising the need for decisive action. Its vision largely hinges on legal harmonisation within Europe, building on early efforts to liberalise markets and establish a truly integrated European market. Despite efforts, “integration fatigue” remains a significant challenge due to legal fragmentation across European economies. Previous reports, from the Cecchini Report in 1992 to the Europe 2020 Strategy, have highlighted persistent issues like regulatory divergences and declining political support for market integration. Despite numerous proposals, progress has been limited, and many challenges persist or have worsened (see Section 2). An analysis of EU reports reveals a shift in policy priorities over time. Initially, there was a strong focus on liberalisation and market opening, with less attention given to state aid and industrial policymaking. The Letta Report highlights the importance of regulatory convergence and harmonisation, reflecting a deeper understanding and recognition of the drivers of EU competitiveness. The rise of nationalism and a shift towards “Strategic Autonomy” within the EU have hindered crucial market reforms. This highlights the importance of aligning laws across Member States to strengthen and reinforce EU’s economic resilience and international competitiveness (see Section 3). EU institutions and Member State governments should set specific goals for “legal harmonisation in the EU.” This shift would address real challenges faced by businesses and citizens, and build political will for necessary reforms. Prioritising legal harmonisation would enhance internal cohesion and align national laws with Union-wide goals. An actionable roadmap – potentially with a 2028 deadline – is crucial to address the substantial gap between ambitious EU strategies and Europe’s economic realities. (see Section 4). Implementing sector-specific and horizontal policies in a new regulatory regime would improve cross-border operations and competitiveness. The Letta Report advocates for a European Code of Business Law to establish a unified regulatory framework, introducing a 28th legal regime to address national regulation discrepancies. Extending this regime to include tax and labour market policies would significantly enhance cross-border operations. The EU and Member State governments can eliminate substantial internal barriers by prioritising key horizontal policies affecting all businesses, such as fragmented tax laws, labour market policies, and social security systems. Simplifying and harmonising these policies on the basis of the facilitation of four freedoms is crucial for unlocking the Single Market’s potential for businesses and workers, boosting the EU’s global competitiveness. Allowing coalitions of willing countries to advance in certain areas of legal integration provides a viable solution to the long-standing Single Market “fatigue”. By enabling smaller groups of Member States to pursue integration in specific areas, the EU can bypass the constraints imposed by rigid voting requirements and achieve greater agility, accountability, and acceptance in EU law-making. This approach not only fosters flexibility but also upholds the fundamental principles and objectives of the EU. To ensure the integrity of the EU legal order and prevent unjustified barriers or discrimination against non-participating members, it is essential to establish safeguards and oversight mechanisms. These measures would maintain cohesion within the Union while allowing for progressive legal integration among willing Member States.
Topic:
Markets, European Union, Digital Economy, and Economic Integration
Political Geography:
Europe

16. The changing dynamics of European electricity markets and the supply-demand mismatch risk

Author:
Conall Heussaff and Georg Zachmann
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Meeting Europe’s 2030 climate targets will require massive clean-electricity investment. To facilitate these investments, state-backed de-risking schemes such as contracts for difference (CfDs) are needed. Their role in supporting renewables has been consolidated by the European Union’s recently agreed electricity market design reform. Under such state-backed schemes, the distribution of costs between the market and the state will depend on the balance of supply and demand. Lower demand will decrease spot-market prices, reducing market costs but increasing the cost to CfD-issuing states. If electrification of European energy demand does not keep pace with the electricity supply expansion, tens of billions of euros annually could be channelled through state contracts, generating costs that must ultimately be recovered from consumers. A cost-efficient, managed transition will require European coordination of electricity supply, demand and network investments. Clean electricity supply and demand should be synchronised through a combination of state interventions and market mechanisms. Undersupply of clean power will mean a failure to meet climate targets, but oversupply can be costly too. To manage the costs of renewable de-risking schemes and to accelerate energy-system decarbonisation, flexible electricity systems should be promoted, policies to encourage electrification could be implemented and cost-recovery arising from state-backed renewable support schemes should be fair.
Topic:
Climate Change, Markets, Electricity, Energy, and Supply and Demand
Political Geography:
Europe

17. Unpacking China’s industrial policy and its implications for Europe

Author:
Alicia Garcia-Herrero and Robin Schindowski
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
China is often credited with a successful application of industrial policy. One important particularity of China’s industrial policy is that it aims at levelling the playing field between the state economy and the private economy in access to finance, yet within a framework of strategic goals. This aim is not relevant for market economies, such as those of the European Union, but only for those where state enterprises are clearly privileged. Notwithstanding the difficulties in making valid comparisons, our analysis of how China conducts industrial policy in a variety of sectors points to success in some sectors but not all. More importantly, productivity growth in China has already been declining for two decades. Given the very large resources that China has put into industrial policy, with subsidies being only one part, it is surprising that success is not more evident. This relates partly to factors including cronyism and regional protectionism. While the former might be less relevant for the EU given the different institutional background, the latter certainly is relevant since the EU faces the potential consequences of member country-level industrial policy for its single market. A lesson from China seems to come from the sectoral focus, with a long-term and economic-security mindset. The EU is far from this, but it is in the process of linking economic security to industrial policy. Finally, responding to China’s industrial policy involves diverse investigations and challenges in measuring subsidies accurately. Understanding China’s very diverse and complex approach to helping companies achieve the government’s industrial policy goals is crucial for anticipating the consequences of China’s actions. These could be positive, such as cheaper imports of green technology, or negative, such as Chinese overcapacity spilling over to the EU single market.
Topic:
Industrial Policy, Markets, European Union, and Economy
Political Geography:
China, Europe, and Asia

18. Unity in power, power in unity: why the EU needs more integrated electricity markets

Author:
Georg Zachmann, Carlos Batlle, Francois Beaude, and Christoph Maurer
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The energy crisis that started in 2022 reminded European governments of the resilience provided by relatively well-integrated European electricity markets, which have been painstakingly built-up over several decades. European Union leaders thus decided to reverse a creeping energy renationalisation and to invest in completing the internal market. However, there are some indications that this momentum is being lost, with different EU capitals taking different lessons from the energy crisis, at a time of unprecedented investment needs in generation and grids across the EU. The multiple benefits of enhanced EU energy-market integration should be emphasised. ‘Techno-economic’ benefits can be secured from optimising the design and operation of several national electricity systems jointly, rather than individually. These benefits will increase massively with higher shares of renewables and include less fossil-fuel burn and less volatile short-term prices, cost savings through harnessing regional renewables advantages, reduced need for expensive back-up capacity and flexibility, and enhanced resilience to shocks. In addition, greater energy-market integration will trigger benefits of a more managerial-governance related nature, though these are harder to quantify. They include benefits in terms of competition, innovation and credibility, which are particularly useful in the electricity sector, which typically faces rather long investment times and high degrees of concentration in purely national markets. Further market integration requires substantial political investment. Governments will need to deal with significant distributional effects within and between countries. Experience has shown that domestic political constraints in this respect are often numerous and difficult to overcome. Therefore, achieving the benefits of integration will require a vision on what degree of integration is feasible and desirable, and how to properly implement and govern it. It will also require an honest acknowledgement of the implications and costs of not pursuing greater integration.
Topic:
Markets, European Union, Regional Integration, Electricity, and Energy Crisis
Political Geography:
Europe

19. The chicken-and-egg problem in the European Union Digital Markets Act

Author:
Fiona Scott Morton
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The gatekeeper platforms regulated by the European Union’s Digital Markets Act (DMA) must comply with the law as of 6 March 2024. The DMA requires that core platform services create and make available interfaces that allow business users to access end users via the platform at lower cost and on better terms. For example, app developers will have the right to distribute on handsets through different app stores, using different payment services, directing users to purchase content on the web and charging different prices in different channels. The gatekeeper must provide the application programming interfaces, or APIs, to enable business users to take advantage of these rights. However, the DMA does not define exactly what those APIs should be. Rather, the law requires a gatekeeper’s interface to be “effective,” meaning business users can use it to enter, compete and innovate. Because such a design is not, in general, in the interest of the gatekeeper, the input of business users to both gatekeepers and the European Commission is critical for evaluating compliance with the law. Thus far there is little evidence of platforms interacting with business users or putting out interfaces for evaluation by business users, or of business users offering comments on what interfaces would be best for entry and competition. It may be that the interface must come first, and then its existence will stimulate entry of new business users or investment into new services that will use the interface. Rather like the chicken and the egg, which should come first? Business users are needed to help create useful interfaces, while useful interfaces are needed to justify investment and entry by business users.
Topic:
Markets, European Union, Investment, and Digital Markets Act (DMA)
Political Geography:
Europe

20. Tracking the Trend of Quinoa Price in Bolivia: Structural Breaks and Persistence of Shocks

Author:
Javier Aliaga Lordemann, Ignacio Garrón Vedia, and María Cecilia Lenis Abastoflor
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
Quinoa has evolved considerably in the past decades, becoming consolidated as a fundamental pillar for Andean farming communities and emerging as a prominent actor in the global superfood market. Despite this, prices of this grain have been characterized by complex dynamics, with substantial fluctuations that directly affect smallholder income. The goal of this research is to analyze Bolivian quinoa price dynamics, identifying both the main events and factors that caused structural breaks in the price trend and the persistence of shocks in time. The approach employed combines, on the one hand, an analysis of the structural breaks by means of the Bai and Perron contrast, together with estimates of long memory using the 2ELW estimator. Also evaluated was the influence of exogenous variables that affect prices, for which the world commodity activity index (Index of Global Real Economic Activity), the Oceanic Niño Index and world quinoa production were considered. The findings show multiple structural breaks in the quinoa price series, related to certain key events. Among the latter are for example changes in research and development, the production and sales boom, and the boost prompted by State initiatives and international cooperation. These breaks are also related to different degrees of persistence in the shocks under the different regimes identified. Although the exogenous variables show no significant short-term effects, it is understood that they may have a relevant influence in different periods. The present study shows the complexity of Bolivian quinoa price dynamics, characterized by several structural breaks. To take proper advantage of this market, producers and policy makers must implement flexible strategies, as well as continuous monitoring of the sector’s progress, considering the key factors that induced price trend changes over the years.
Topic:
Markets, Memory, Price, Quinoa, and Structural Breaks
Political Geography:
South America, Bolivia, and Andes