32 results for Meade, Richard, Scholarly text

  • The Impact of Climate Change Policy on Forest Value and Dairy Conversion Rates

    Meade, Richard (2006)

    Scholarly text
    Victoria University of Wellington

    The conversion of forest land into dairy farms has recently increased worsening New Zealand's greenhouse gas emissions under the Kyoto Protocol. Climate change policies can affect both forest value and optimal forest management as they relate to and affect future decisions regarding the conversion of forest land into dairying. These decisions are also affected by uncertainty in climate change policy and uncertainties in the prices of timber milk and carbon dioxide. Conventional discounted cash flow valuation techniques cannot model these contingent future decisions and uncertainties so an alternative valuation approach based on real options techniques is required. This shows that climate change policies either adopted or being considered in New Zealand do indeed affect both forest value and the rate at which forests are likely to be converted into dairying but not always as expected.

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  • Intervention in Electricity Investment: Required, or Self Perpetuating?

    Meade, Richard (2005)

    Scholarly text
    Victoria University of Wellington

    Richard Meade presented Intervention in Electricity Investment: Required, or Self Perpetuating? at an ISCR seminar in December 2005. The book Richard Meade has co-authored with Lewis Evans on the topic, Alternating Currents or Counter Revolution? Contemporary Electricity Reform in New Zealand is now out.

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  • Forest and Forest Land Valuation - How to Value Forests and Forest Land to Include Carbon Costs and Benefits

    de Braganca, Gabriel Fiuza; Lu, Yinjia (Andrea); Meade, Richard (2009)

    Scholarly text
    Victoria University of Wellington

    Presentation by Richard Meade to the AARES 53rd Annual Conference held 10-13 February 2009 in Cairns Australia.Forest and Forest Land Valuation - How to Value Forests and Forest Land to Include Carbon Costs and Benefits.

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  • Comparison of Long-Term Contracts and Vertical Integration in Decentralised Electricity Markets

    Meade, Richard; O'Connor, R. Seini (2009)

    Scholarly text
    Victoria University of Wellington

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  • Ownership vs Regulation in Electricity Reform: The Role of Governance

    Meade, Richard (2005)

    Scholarly text
    Victoria University of Wellington

    ISCR Research Principal Richard Meade presented Ownership vs Regulation in Electricity Reform: The Role of Governance at The European Electricity Market 2005 conference held in Lodz, Poland in May.

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  • Continuous Disclosure: Some Background

    Meade, Richard (2006)

    Scholarly text
    Victoria University of Wellington

    Richard Meade presented Continuous Disclosure: Some Background at the Continuous Disclosure workshop held in June 2006.

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  • Alternating Currents or Counter-Revolution? Contemporary Electricity Reform in New Zealand, VUW Press 2005 , 1-346

    Evans, Lewis; Meade, Richard (2009)

    Scholarly text
    Victoria University of Wellington

    The authors place New Zealands current institutional arrangements for its electricity sector within the context of successive waves of economic reform. They compare these arrangements with developments internationally, drawing together lessons for future policymaking both in New Zealand and overseas. This book is a work of political economy that carefully analyses the interplay between technology, economics and politics that has at different times driven the sector. Controversially, the authors argue that the market reforms of the 1980s and 1990s provided greater supply security than the more centralised arrangements that prevailed in the past - and that New Zealands reversion to more centralised and political control since the late 1990s has resulted in an unsustainable half-way house that hinders private electricity investment and reinforces this trend. Themes of the book are: Does electricity sector liberalisation help politicians, power companies and consumers? Will central planning or market forces be more likely to ensure supply security? Is regulation or ownership the best way to protect consumers from electricity monopolies? Can electricity reforms succeed with centralised transmission planning? What can be learned from 20 years of electricity reform in New Zealand?

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  • Intra-Country Regulation of Share Markets: Does One Size Fit All?

    Boyle, Glenn; Meade, Richard (2005)

    Scholarly text
    Victoria University of Wellington

    A large body of evidence suggests that investor protection regulationassists the development of major stock exchanges but this leaves openthe question of whether or not the same level of regulation should beapplied to all centralised trading platforms. Allowing for regulatoryvariation permits a wider choice of investment opportunities for liquidity conscious investors lowers some firms' cost of capital and enhancesplatform competition while potentially negative spillover mechanismslack both theoretical credibility and empirical support. Overalluniformity in investor protection regulation seems designed to provide anexpensive solution to a doubtful problem.

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  • An Economic Appraisal of Ngai Tipu Whakaritorito: A New Governance Model for Maori Collectives

    Meade, Richard (2004)

    Scholarly text
    Victoria University of Wellington

    Interest in the governance of Maori collectives has grown considerably over the past decade as significant settlements have been made between the Crown and various tribes (iwi) under the Treaty of Waitangi and also as Maori collectives take an increasing role in providing social service delivery on behalf of government to Maori communities. Maori collectives pose complex challenges in the design of optimal governance systems given the many overlapping roles and relationships assumed by individual collective members and cultural dimensions of Maori organisation typically based predominantly around lineage and social standing. The Maori Development Ministry Te Puni Kokiri like other agencies argues that the wide range of governance entities currently used by Maori collectives for their various economic social political and cultural activities each have inadequacies that are exposed in the Maori collective context. It has proposed a new governance entity that it claims better meets the requirements of such collectives. This paper briefly describes and analyses the Maori collective governance problem from the perspective of the economics of governance and provides an appraisal of Te Puni Kokiri's proposal in this light. It is argued that the proposed new governance entity offers little more than existing available options and in fact may not be meeting any particular deficit in the governance framework for Maori collectives or otherwise. Standard and cooperative companies are shown to be more suitable for Maori collective governance than often thought. For the Te Puni Kokiri proposal to materially add to the governance options available to Maori collectives it will be important to consider it in the light of forthcoming proposals for assisting Maori collectives to establish their mandate and "voice."

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  • Decentralization and Re-centralization of Electricity Industry Governance in New Zealand

    Meade, Richard (2004)

    Scholarly text
    Victoria University of Wellington

    For much of the twentieth century electricity generation and transmission in New Zealand was dominated by centralized state ownership and control with local authority ownership of distribution and retailing. Radical reform of the sector commenced in the early 1980s with the progressive corporatisation and unbundling of these sub-sectors limited privatizations and a shift towards "light-handed" non-industry specific regulation. These reforms contained inherent tensions that quickly manifested themselves in a political stand-off over the electricity price path required to support new generation investment. In turn this standoff spurred the industry-led development of a voluntary self-governing wholesale electricity market. With a change of government in 1999 increasing re-centralization of industry governance and regulation resulted in part justified on the grounds of winter power "crises" in 2001 and 2003 involving significant wholesale electricity price spikes (although blackouts were a regular and more disruptive occurrence prior to the reforms). With the return to centralized industry governance and shift towards heavy-handed regulation - but now with greater private sector investment in the sector - system supply and security issues persist and questions remain over the likely effect of these policy reversals on required new investment.

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  • Electricity Investment and Security of Supply in Liberalized Electricity Systems

    Meade, Richard (2005)

    Scholarly text
    Victoria University of Wellington

    Eliciting generation investment by decentralized profit-seeking private investors is a key goal of electricity liberalization. Debate rages regarding the ability of energy-only electricity markets to ensure that such investors provide generation investment as and when needed to ensure "the lights stay on."Many argue that despite theoretical predictions to the contrary energy-only markets will under-provide the requisite level of investment due to market imperfections that are either inherent (such as consumer resistance to real-time pricing) or imposed (such as price caps to curtail market power). Thenature of these imperfections is increasingly being debated with security of supply formerly being regarded as a public good but later analysis showing this is not the case (or even if it were why that need not necessitate intervention). Greater attention is now being paid to externalities associated with the provision of security of supply but evidence on the importance of such externalities is yet to be presented. Similarly lacking is evidence on the superiority of mechanisms often proposed or implemented to encourage investment in generation capacity where energy-only markets are thoughtto elicit inadequate investment. These mechanisms include capacity payments capacity obligations options-based capacity schemes and capacity subscriptions with load-limiting fuses. While the latter are argued to represent an elegant and non-distortionary means to encourage market-based securityof supply the other alternatives are shown to be conditionally optimal at best and in principle and practice subject to self-defeating features that can be bettered by refinements to energy-only market arrangements (greater demand-side responsiveness) and structural measures (vertical integration ofgeneration and energy retailing). By instead pursuing these alternative measures security of supply is more easily achieved electricity prices are less vulnerable to exploitation of generator market power and generation investment is more likely to arise. The need for price caps which then necessitate compensatory capacity mechanisms to elicit investment is then reduced. At the same time exposure to regulatory risk is lessened. Combining these measures with greater political and regulatory restraint is argued to provide a more stable and superior means to elicit the investment needed to provide the socially optimal security of supply addressing any market imperfections at source rather than introducing new mechanisms at least as much at risk of imperfection. The use of capacity mechanisms is argued to increase the risk that energy-only markets will fail to perform as expectedand required undermining the liberalisation process. As such they raise the prospect that governments and regulators concerned about security of supply will once again find themselves responsible for achieving it at consumers' and/or taxpayers' expense but with lesser prospect of success.

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  • Climate Changes Stock-take and Appraisal

    Meade, Richard (2007)

    Scholarly text
    Victoria University of Wellington

    Richard Meade presented Climate changes stock-take and appraisal at The Journalists Training Organisation Courses hosted by Victoria University Continuing Education and Executive Development.

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  • Vertical Integration and Market Power in Electricity Markets

    Hogan, Seamus; Meade, Richard (2007)

    Scholarly text
    Victoria University of Wellington

    Seamus Hogan presented Vertical Integration and Market Power in Electricity Markets at an ISCR seminar in Wellington on 1 May 2007

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  • Ownership vs. Regulation in Electricity Reform: The Role of Governance

    Meade, Richard (2005)

    Scholarly text
    Victoria University of Wellington

    Electricity reform typically involves little regard to the possibility that customerownership might substitute for the "protections" of state ownership or for investor ownership under regulatory safeguards where market power is a concern. Recognising that regulation is itself costly and that market contracting ownership and regulation are partly substitutable forms of governance this paper argues that state ownership of natural monopolies in electricity distribution (and transmission) is inefficient. Unregulatedcustomer ownership of these activities is superior better aligning monopolist and customer incentives at lower cost. Even unregulated investor ownership of distribution is predicted to better balance the costs of market contracting ownership and regulation than does state ownership. Regulation of customer owned distribution (and transmission) is also shown to be inefficient imposing regulatory costs without compensatory gains. Examples of widespread customer ownership of distribution in New Zealand and of distribution and sometimes transmission in the US illustrates how such ownership has evolved as an effective substitute for regulation. Policy implications are drawn.

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  • Economic Analysis of Financial Transmission Rights (FTRs) with Specific Reference to the Transpower Proposal for New Zealand

    Evans, Lewis; Meade, Richard (2001)

    Scholarly text
    Victoria University of Wellington

    Setting aside certain complications that can arise due to market power it is a relatively straightforward matter to derive (if not implement) a valuation formula for FTRs and to relate FTR valuation with the proceeds of the FTR auction allowing for both taxation and auction efficiency. If the FTR auction is fully efficient and/or if FTR revenues and costs were not taxable then not only would FTR values be maximised but the revenues to grid-connected parties from that auction would also be maximised. The seemingly odd result that FTR auction efficiency affects FTR values flows from the fact that the latter benefit from a tax deduction on FTR acquisition costs which deduction is maximised under a fully efficient FTR auction.

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  • The Multinationalisation of New Zealand Agri-Businesses: Drivers, Implications, Issues and Opportunities

    Meade, Richard (2007)

    Scholarly text
    Victoria University of Wellington

    Richard Meade presented The Multinationalisation of New Zealand Agri-Businesses: Drivers Implications Issues and Opportunities In Wellington on 6 December 2007. A recent report by Lew Evans and Richard Meade for MAF* highlights that New Zealand's major agricultural sectors are increasing their offshore production capacity. This trend reflects a subtle shift in the nature of New Zealand's agricultural comparative advantage with a greater contribution now from intellectual property. The multinationalisation of New Zealand Agri-Businesses offers a range of benefits including improved market access a reduced carbon footprint and reduced exposure to adverse exchange rates. In this seminar the drivers and implications of this changing strategy are explored as are obstacles to its further development (particularly in relation to cooperative food processors) and opportunities it presents.To view the report this presentation refers to click here.

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  • Grid Characteristics and the Interface Between Competition and Regulation Policies

    Meade, Richard (2008)

    Scholarly text
    Victoria University of Wellington

    This presentation explores the demarcation of this boundary and how it is affected by grid characteristics as a first step towards an ongoing comparative analysis of the institutional dynamics of competition and regulation policies in the electricity sector (for presentation at IAEE 2008)

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  • Real Options and Transmission Investment: the New Zealand Grid Investment Test

    Boyle, Glenn; Guthrie, Graeme; Meade, Richard (2006)

    Scholarly text
    Victoria University of Wellington

    Responsibility for approving proposed transmission investment programmes in New Zealand has recently been placed in the hands of a newly-formed government regulator. In this paper we develop an analytical framework for conceptualising the investment test proposed by this regulator. Our framework reveals that the test involves a complex set of tradeoffs between economies of scale the time value of money and flexibility in the timing level and location of transmission investment assessment of which requires explicit recognition and valuation of real options.

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  • Round 2: Using Ownership to Resolve Investment and Pricing Issues in Transmission and Distribution

    Meade, Richard (2006)

    Scholarly text
    Victoria University of Wellington

    Richard Meade presented Using Ownership to Resolve Investment and Pricing Issues in Transmission and Distribution in April 2006.

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  • One Size Fit All? Investor Protection Regulation in Financial Markets

    Boyle, Glenn; Meade, Richard (2005)

    Scholarly text
    Victoria University of Wellington

    Professor Glenn Boyle presented One Size Fit All? Investor Protection Regulation in Financial Markets at this seminar in May 2005.

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