Environmental Policy and Economics Speakier Series: Adam Fremeth

• When: March 14, 2013
• Time: 3:30 PM – 5:00 PM
• Location: DMS3105, University of Ottawa

Extra-jurisdictional Regulation: Do Regulations in One Location Affect Behaviour in Other?

It is well documented that firms respond to regulations in their home jurisdictions. This talk hypothesizes that firms also respond to regulations in jurisdictions where they do not operate. Adam will examine renewable-power provision in the U.S. electrical utility sector between 2001 and 2006, and finds firms adopt more renewable-power generation when their peers (i.e., firms in the same regulatory jurisdiction) face greater renewable-power standards in other jurisdictions. The underlying mechanism is that forward-looking firms assess when extra-jurisdictional regulations foreshadow regulatory changes where they operate. The analyses support this mechanism versus plausible alternatives. The research demonstrates that firms act strategically to respond to extra-jurisdictional regulations and shows that the central conduit motivating this response is the extra-jurisdictional footprint of firms operating in the same jurisdiction as a focal firm.

Adam Fremeth

Adam Fremeth joined the Business Economics and Public Policy group at Ivey Business School in July 2009 after completing his Ph.D. in Strategic Management and Organization at the University of Minnesota. He holds an HBA from Ivey and an M.A. in International Affairs from Carleton University. Professor Fremeth’s research focuses on the intersection of firm strategy and public policy making. He is primarily concerned with how firms both shape and respond to public policy. In particular, his work has helped to better understand how competitive interaction among firms in regulated settings can influence a firm’s environmental performance. Ongoing research projects focus on the development of the renewable energy sector in North America, the value of asymmetrical information in regulatory rulings in the electric utility sector, and the patterns of personal campaign contributions by Chief Executive Officers.