2025 Theses Doctoral

Three Essays on The Twin Problem of Electricity Markets

Gonzalez Sutil, Gabriel

This dissertation explores two critical challenges in energy policy: the barriers to the optimal diffusion of abatement technologies and the persistence of energy poverty. The first chapter analyzes the adoption of Nitrogen Oxide (NOx) abatement technologies by U.S. electricity firms, focusing on how changes in environmental policy influence technology diffusion. The findings suggest that learning spillovers across peer plants within the same organization affect the diffusion of these technologies, which can ultimately distort policy outcomes.

The second chapter explores the unintended consequences of distance-based connection pricing policies in sub-Saharan Africa. These policies are expected to incentivize households to delay electricity take-up, thus prolonging energy poverty. This chapter presents theoretical and empirical evidence demonstrating how forward-looking households postpone take-up in anticipation of lower connection fees in the future, exploiting the dynamic incentives created by these pricing policies.

The final chapter investigates how grid reliability contributes to low ownership and use of electric appliances in sub-Saharan Africa. This chapter demonstrates that while households adapt to unreliable electricity, affordability remains a persistent barrier, and targeted affordability programs are necessary to support lower-income regions. In contrast, improving reliability should be targeted at higher-income areas. Collectively, the dissertation provides insights into the diffusion of abatement technologies and identifies obstacles to electrification programs in Africa. These insights offer valuable policy guidance for promoting the widespread adoption of new technologies while addressing the ongoing challenge of energy poverty.