Research

Working papers

Which households respond to electricity peak pricing amid high levels of electrification?, with Øystein Hernæs and Anders Imenes. IZA Discussion Paper No. 15194. CESifo Working Paper No. 9657. (Revise and resubmit at JAERE)

We estimate the effect of critical peak pricing (CPP) on Norwegian households' electricity consumption, using a large-scale randomized controlled trial (RCT) with default enrollment and high-frequency electricity data. A ten-fold increase in the total cost of consuming electricity leads to a 12.5\% reduction in consumption, and virtually eliminates the afternoon consumption ``peak''. In contrast to prior studies from less electrified countries, the effect is broad-based, and similar across income groups. We find little evidence of load shifting to non-CPP hours, except for households with electric vehicles. Furthermore, we document a 2.1\% total net consumption reduction during the five months of the program. These findings provide a unique lens into the effectiveness of demand-based policies, and their impact across household groups, in a more electrified future. [Slides]

Does the Salience of Climate-Related Risk Affect Asset Prices?

Using regression discontinuity and difference-in-discontinuities designs to compare prices of California homes across a new wildfire risk zone boundary, I identify a null local effect. In contrast, difference-in-differences panel estimates indicate that prices of homes newly assigned to a riskier zone drop by 2.5% on average. Both findings are consistent with actual wildfire risk, which is continuous at the boundary but higher on average inside a riskier zone. These findings suggest that households update their risk beliefs in response to re-zoning but do not respond to the increased salience of risk arising from the new risk zone.

Work in progress

"Sticky Asset Prices'' (with Martin Schmalz and Dag Einar Sommervoll)

"Weather-Dependent Asset Prices" (with Andreas E. Eriksen)

"From Brown to Green: Employment Dynamics and Skill Demand in a Low-Carbon Transition'' (with Elisabeth Isaksen and Maria Nareklishvili)

“First or Second-Bidder Advantage in English Auctions? Evidence from Housing Auctions” (with André Anundsen and Erling Røed Larsen)

Selected peer-reviewed publications

Garnache, C. and Mérel, P.R. (2022) “Environmental Policy in General Equilibrium: New Insights from a Canonical Model .” Journal of the Association of Environmental and Resource Economists, 9(1):113–140.

Reeling, C., Horan, R., and Garnache, C. (2020) “When the Levee Breaks: Can Multi‐Pollutant Markets Break the Dam on Point-Nonpoint Market Participation?” American Journal of Agricultural Economics, 102(2):625--640.

Garnache, C. and Mérel, P.R. (2017) “The Social Costs of Environmental Goods Provision: A Cautionary Guide to the Revealed-Preference Approach .” Journal of the Association of Environmental and Resource Economists, 4(4):1025--1052.

Garnache, C., Mérel, P.R., Lee, J., and Six, J. (2017) “The Social Costs of Second-Best Policies: Evidence from Agricultural GHG Mitigation.” Journal of Environmental Economics and Management, 82:39--73.

Garnache, C., Swinton, S.M., Herriges, J.H., Lupi, F., and Stevenson, R.J. (2016) “Solving the Phosphorus Pollution Puzzle: Synthesis and Directions for Future Research.” American Journal of Agricultural Economics, 98(5):1334--1359.

Garnache, C. (2015) “Fish, Farmers, and Floods: Coordinating Institutions to Optimize the Provision of Ecosystem Services.” Journal of the Association of Environmental and Resource Economists, 2(3):367--399.