Alessandro Sarra

Integrating renewable energy sources into electricity markets: Power system operation, resource adequacy and market design

Focusing on the Italian power system, the article examines how the national regulatory framework has been modified to effectively accommodate and further increase the share of renewable energy in the energy mix while preserving system reliability. This paper argues that operational changes and regulatory measures adopted so far, which are mainly directed to create a level playing field between different energy sources, constitute a short-term response, and thus of limited effectiveness while increasing cost for consumers. To intensify the de-carbonization process of the Italian power system a more fundamental revision of the current market design is required. In this view, an essential ingredient is the future expansion of the electricity grid starting from a clear recognition of energy mix that we intend to reach in the mid/long term.

Exploring additional determinants of fixed broadband adoption: policy implications for narrowing the broadband demand gap

ABSTRACT Using data from the survey ‘Aspects of daily life’ conducted on Italian individuals in 2014 by the Italian Institute of Statistics, we propose new evidence on the factors that encourage the adoption of fixed broadband, a topic relevant for the reduction of the so-called broadband demand gap. We estimate a probit model through the two-step Heckman procedure for the selection bias, and find that, besides the already studied socio-demographic determinants, Internet-capable devices other than personal computers, as well as recreational (essentially video contents) and cloud-related uses of the Internet, have a relevant positive role. Policies aimed at fostering the diffusion of smart homes and more generally of the Internet of things at the residential level might be very effective in favouring fixed broadband adoption, provided that the network be neutral, not discriminating between data based on their contents and/or the destination device, and that possible foreclosing behaviours in the access to (premium) contents be properly and promptly addressed.

Structural change and the sustainability of regional convergence: Evidence from the Italian regions:

Empirical studies on economic convergence have typically paid poor attention to the role played by the structural characteristics of the economy. Using OECD data for the period 1995–2007, the relationship between structural change and the convergence process of the Italian regions is analysed by integrating two approaches. A modified version of shift-and-share analysis is first used in order to break the average growth rate of labour productivity into its infra-sectoral and structural components. The existence of a relationship between the components of the growth rate and the presence of regional convergence is then assessed econometrically. Unlike in most studies reported in the literature, the regression coefficient is broken up in two separate parts to assess how much of the observed regional growth can be referred to the infra-sectoral and the structural components. The empirical results confirm the existence of a (slow) convergence, but also that only structural change has played a statistically significant support role. The regional disparities are, in most cases, unchanged or even worsened when the infra-sectoral productivity growth is considered. In terms of policy implications, strong emphasis must remain on sectoral policies: ‘place-based’ and ‘sectoral smart specialisation’ policies are crucial for the convergence process to be sustainable in the long term.

Distributive trade and regional productivity growth

ABSTRACT The paper aims to investigate the relationship between distributive trade (wholesale and retail trade) and productivity growth across Italian provinces. In most studies, the potential determinants of productivity in the distributive trade have been investigated, while the impact of these activities on economic growth of the whole system has received less attention. By using panel data during the time period 2000–2013, the paper tests if the increase in the share of employees in distributive trade over the given period has promoted the productivity growth. This study applies both a random-effects model and, among the dynamic panel data estimators, a generalized method of moments estimator (GMM). In order to control both the issue of endogeneity, due to the presence of some potentially endogenous variables among the explanatory variables, and the problem of instrument proliferation, the GMM estimator is implemented together with a statistical method, which reduces the number of instruments when the set of endogenous variables is wide. The findings show that the distributive trade has a strong positive impact on the productivity growth. Moreover, this link is reinforced when we control the potential endogeneity. The results also support the idea that distributive trade can promote provincial convergence.

Catching-Up and Structural Change: Where are they Going Regions of the New eu Member Countries?

The study aims to identify socio-economic characteristics and structural change of regionsin the new European Union Member States. The convergence and growth are central aspectsof the investigation. In this context, it intends to pursue a dual track analysis: a) highlight theextent and causes of regional growth differences by making a comparative evaluation with theregions of the old members of the eu, b) identify the relationships between economic growthand productive structure. Based on the analysis of the causes of growth, will head up the contributionof sectoral change on the evolution of productivity. The results will provide guidanceon policy interventions.

Labour Productivity, Structural Change and the Perspectives of the Italian Regional Economies

The paper aims at proposing a sectoral «shift and share» analysis of the labour productivity growth of the Italian Regions through a decomposition in two different components: an intra-sectoral one, which relates to productivity gains achieved thanks to the internal improvements of productivity in each sector; a structural one, which refers to productivity gains due to changes in sectors composition. The findings suggest that the role of the structural change (characterized by a marked tertiarization process) has been, with few regional exceptions, predominant in the period 1980-2004 and decisive in the period 2000-2007. In many cases, the structural change positive contribution to total productivity growth has concealed a decline of the productivity within sectors (in particular as far as the 2000-2007 period is concerned). In addition, the employment has moved from sectors with «low levels - high growth rates» of productivity (manufacturing) to «high levels - low growth rates» of productivity (services), thus supporting Baumols structural burden hypothesis.