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In this paper, we present a two-stage model of zonal electricity markets with day-ahead market clearing, and real-time re-dispatch and balancing that accounts for transmission line switching at both stages. We show how the day-ahead problem with switching can be formulated as an adaptive robust optimization problem with mixed integer recourse, and present a new algorithm for solving the adversarial max-min problem that obeys the structure of an interdiction game. We apply the model on a realistic instance of the Central Western European system, and comment on the impacts of both proactive, and reactive transmission switching on the operating costs of the system. Part I presents day-ahead models of a short-term zonal electricity market with switching, and describes our algorithmic approach for solving these models efficiently. Part II describes variants of the real-time model, and presents the results of our case study on the Central Western European market. [ABSTRACT FROM AUTHOR]

The objective of this paper is to analyse the effect that operating leverage exerts on the profitability of SMEs, both in isolation and indirectly through its other determinants. We use panel data from a total of 9652 European agri-food SMEs from 2009 to 2016. The work's principal contribution is the study of the SMEs of a key sector of the European economy in terms of the cost structure, since this is an issue that directly affects the competitiveness of firms, but which has not garnered sufficient attention in the literature. It also considers the importance of the institutional and legal environment on the risk assumed by companies. The results obtained confirm that operating leverage or cost structure, in addition to affecting profitability, also affects the relationship between that profitability and other sources of risk that depend on the country in which the company operates. More specifically, indebtedness, size, innovation specificity and reputation all affect profitability to a greater or lesser extent, depending on the level of operating leverage of the company. [ABSTRACT FROM AUTHOR]

The aim of this paper is to evaluate the effectiveness of two contrasting policy approaches in tackling informal sector entrepreneurship. The dominant deterrence approach theorizes entrepreneurs as rational economic actors who operate in the informal sector when the benefits of doing so outweigh the costs. The resultant policy focus is upon deterring participation by increasing the costs of operating in the informal sector through increased penalties and probability of being caught. Recently, a more preventative approach has emerged theorizing entrepreneurs as social actors operating in the informal sector when there is a lack of vertical trust (in government) and horizontal trust (in others). The consequent policy focus is upon improving entrepreneurs' vertical trust (in the state) and horizontal trust (in each other). To evaluate these approaches, evidence is reported from a 2019 Eurobarometer survey in six East-Central European countries (Czechia, Estonia, Latvia, Lithuania, Poland and Slovakia). The finding is that participation in informal entrepreneurship is not significantly associated with the deterrent measures of raising the penalties and probability of being caught but is significantly associated with the preventative measures of improving vertical and horizontal trust. The implications for theory and policy are discussed. [ABSTRACT FROM AUTHOR]

This paper analyses the effects of the intensity of regulations in the product and labour markets on the growth of total factor productivity (TFP) for 121 European regions. A technological catch-up model is estimated for the period 1995–2007. We use the spatial lag of X (SLX) model to capture possible spatial interactions across spatial units. Our empirical findings show that lower levels of regulation are associated with higher TFP growth. Lower barriers to entrepreneurship and lower bureaucratic costs have a positive effect on productivity growth. Corruption raises operational costs, distorts the allocation of resources and negatively affects innovation activities, thereby reducing TFP growth. Further liberalization in the labour market (in terms of hiring and firing regulation, working hours regulation and employment protection legislation) has a significant positive effect on the growth of TFP. In addition, both regional technological and regional human capital have a positive impact on the TFP growth in European regional economies. [ABSTRACT FROM AUTHOR]

The last decades have seen a tremendous amount of research being devoted to effectively managing vehicle fleets and minimizing empty mileage. However, in contrast to, e.g., the air transport sector, the question of how to best assign crews to vehicles, has received very little attention in the road transport sector. The vast majority of road freight transport in Europe is conducted by single drivers and team driving is often only conducted if there are special circumstances, e.g., security concerns. While it is clear that transport companies want to avoid the costs related to additional drivers, vehicles manned by a single driver sit unused whenever the driver takes a mandatory break or rest. Team drivers, on the other hand, can travel a much greater distance in the same amount of time, because mandatory breaks and rests are required less frequently. This paper investigates under which conditions trucking companies should use single or team driving to maximize their profitability. We present a novel optimization approach for simultaneously optimizing routes and crewing decisions and provide experimental evidence that, for a wide range of cost factors, operating a fleet with a mix of team and single drivers can significantly reduce operational costs when compared to typical profit margins in the sector. [ABSTRACT FROM AUTHOR]

• We analyse the reserve procurement in a renewable-dominated power system. • We focus on when reserves are scheduled and compare three market designs. • A full co-optimization of energy and reserve (Model 3) is the most efficient system. • Reserve scheduled after the clearing of the energy market can be as efficient as Model 3. • Reserve scheduled before the clearing of the energy market is the least efficient system. This paper investigates different reserve issues inspired by the European situation, focusing on both the moment when reserves are procured and the degree of coordination among Transmission System Operators (TSOs) in that procurement. We present three scheduling models formulated as stochastic programs that represent the day-ahead energy market, the reserve procurement, and the real-time balancing market in a renewable-dominated power system. Two of the proposed models are inspired by reserve procurement mechanisms currently applied in Europe, where reserves are committed either before (Model 1) or after (Model 2) the clearing of the day-ahead energy market. Then, we use as benchmark a third model in which energy and reserve capacity are co-optimized (Model 3). In all models, we consider the procurement of both conventional and upward/downward reserves. We also assess the impact of these organizations on market participants' remuneration and test the impact of cross-border constraints as those applying in the European power system. The case study is based on the IEEE 24-node RTS, considering the uncertainty in renewable power production and demand. Our results show that Model 1 is the least efficient market design as it leads to a misallocation of the available capacity, while Model 2 becomes as efficient as Model 3 when the TSOs procure reserve in a coordinated way. Finally, a coordinated procurement of reserves reduces the system operating costs in all models. [ABSTRACT FROM AUTHOR]

Purpose - Real estate investors invest more and more cross-border, but the valuation practices in the different countries are not similar. For investors it is good to know the difference in valuations between the countries, therefore this paper aims to investigate the valuation practices in eight different countries (France, Germany, Italy, The Netherlands, Portugal, Russia, Spain and the UK). Design/methodology/approach - To gather the information a questionnaire was sent out. The questionnaire included questions not only about facts, but also about the respondents' opinion about the reliability of the information. Findings - It was found that in the different countries market value is not always the basis and that a wide variation of surface measurements is currently applied. Regular lease periods and the responsibility for operating cost vary from country to country. Also the sources for market evidence and their reliability differ per country. So it can be seen that, although market values can be compared across countries, valuation methodologies are country-specific. Research limitations/implications - The authors are still in the process of retrieving information and quality control, and the intention is to expand the research to all European Union countries, and finally all European countries. Therefore this paper only shows initial findings. Originality/value - The existing research about international valuation practices is not very recent, and, because the authors not only assembled facts and processes, but also collected the respondents' opinions about the reliability of the information, the research is very valuable. [ABSTRACT FROM AUTHOR]

This paper presents a methodology able to compare road and rail-road intermodal market areas that takes the network structures, the operation costs and the location of the rail-road terminals into account. A particular way to model rail-road transport on hub-and-spoke networks is outlined and illustrated on the trans-European networks. The market area of an optimal eight hubs network configuration is presented both for the p-hub median and the p-hub centre problem. This is followed by a discussion about the evolution of the market area according to the number and locations of the implemented hubs. [ABSTRACT FROM AUTHOR]

One of the challenges in the transition towards a zero-emission power system in Europe will be to achieve an efficient and reliable operation with a high share of intermittent generation. The objective of this paper is to analyse the role that Demand Response (DR) potentially can play in a cost-efficient development until 2050. The benefits of DR consist of integrating renewable source generation and reducing peak load consumption, leading to a reduction in generation, transmission, and storage capacity investments. The capabilities of DR are implemented in the European Model for Power Investments with high shares of Renewable Energy (EMPIRE), which is an electricity sector model for long-term capacity and transmission expansion. The model uses a multi-horizon stochastic approach including operational uncertainty with hourly resolution and multiple investment periods in the long-term. DR is modelled through several classes of shiftable and curtailable loads in residential, commercial, and industrial sectors, including flexibility periods, operational costs, losses, and endogenous DR investments, for 31 European countries. Results of the case study shows that DR capacity partially substitutes flexible supply-side capacity from peak gas plants and battery storage, through enabling more solar PV generation. A European DR capacity at 91 GW in 2050 reduces the peak plant capacities by 11% and storage capacity by 86%. [ABSTRACT FROM AUTHOR]

In recent years solar photovoltaic electricity has shown a steady decrease in cost, thanks to technological improvements and economies of scale. Over the last 20 years the price of PV modules has dropped by more than 20% each time the cumulative volume of PV modules sold has doubled. System prices have fallen accordingly: during the last 5 years a price decrease of 50% has been seen in Europe. This trend will continue in the foreseeable future. System prices are expected to fall in the next 10 years by 36-51%, depending on the segment. Importantly, there is a huge potential for further reductions in generation costs: around 50% by 2020. The cost of PV electricity generation in Europe could decrease from 0.16-0.35ग/kWh in 2010 to 0.08-0.18ग/kWh in 2020, depending on system size and irradiance level. That decline in cost will continue in the coming years as the PV industry progresses towards becoming competitive with conventional energy sources. Under the right policy and market conditions, PV competitiveness can be achieved in some markets as early as 2013, and then spread across Europe in the different market segments by 2020. This paper summarizes the first part of a newly published EPIA report about PV competing in the energy sector. The report illustrates why PV can become a mainstream player in the energy field before 2020. The study, carried out with the support of the strategic consulting firm A.T Kearney, shines new light on the evolution of Europe's future energy mix and PV's role in it. [ABSTRACT FROM AUTHOR]

Abstract: This paper analyses the determinants of the performance differential between the private and public management of urban public transport in Europe. Our analysis supports the view that private management is associated with a lower operating cost. We show, however, that the size of the costs'' differential can depend on the interaction of the local authorities'' capacity for expertise and the private operators'' autonomy margin. In particular, we show that, in certain situations, there might be little difference in operating costs. Thus, in terms of total costs (production and transaction costs), no systematic advantages should be expected from private management. [Copyright &y& Elsevier]

Using data on more than 5,000 mutual funds domiciled in four European countries in 2006, we investigate whether distribution costs embedded into the expense ratio can be held responsible for the differences of expense ratios of mutual funds in different countries. We confirm the existence of relevant country effects in the pricing of mutual fund management services. Comparing load and no-load funds and using survey data on fee retrocession to the distribution channel, we provide evidence that these effects are heavily influenced by the cost of the distribution embedded in the expense ratio. [ABSTRACT FROM AUTHOR]

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En este artículo analizamos el rendimiento macrofinanciero inicial de la «privatización» parcial de los sistemas de pensión de muchos países emergentes de Europa que incorporaron cuentas individuales de ahorro para la jubilación administradas por el sector privado. Los datos empíricos de un lapso de casi diez años indican que la rentabilidad de las cuentas individuales administradas por el sector privado ha sido inferior a la tasa de rentabilidad implícita de los sistemas públicos de reparto. Se considera que los principales motivos por los cuales las cuentas individuales de ahorro para la jubilación administradas por el sector privado no han alcanzado las expectativas generadas por la reforma son los altos costos operativos y el retraso de los mercados de capitales. A la luz de las observaciones empíricas es recomendable que Serbia se concentre en reformas de los parámetros de reparto y evite reformas que supongan la «privatización» parcial del sistema de pensiones. [ABSTRACT FROM AUTHOR]

The study analyzes the components of advertising spending for a group of European countries with stable total advertising spending over the period 1994-2007. Three components of advertising spending were considered: Electronic, Print, and Online. Our main objective was to study how the components were restructured within the period under study and to find clusters of similar countries. A specific distance for time series, which is expressed as a linear combination of a standard distance measure and the weights, was to be used. The standard distance used for compositional data is the Aitchison distance, however it was found unsuitable due to zero and near zero values in the Online component. As a simple alternative a linear regression model on the components was used, followed by standard cluster analysis on the regression estimates. Results enable a deeper insight into the level of each component and into the structural changes in components for clusters of examined countries. [ABSTRACT FROM AUTHOR]