Research

Working papers

Household response to peak electricity pricing: Evidence from a large-scale field experiment, 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 with default enrollment and high-frequency electricity data. A large increase in the price of consuming electricity during 4PM and 10PM leads to a 15.3% reduction in consumption, and virtually eliminates the afternoon consumption peak. The effect is broad-based and similar across consumption and income groups. We find substantial load-shifting to non-CPP hours, but only for households with electric vehicles. Furthermore, we document a 2.3% net consumption reduction during the three months of the program, suggesting some effect persistence. These findings provide additional information regarding the effectiveness of demand-based electricity management policies. [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.

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