ISET Economist Blog

18 February 2019

Lika Goderdzishvili, Sophiko Skhirtladze

Who Is the Surgeon?

Riddles are fun; sometimes, though, they teach us more than expected. Consider this riddle, for example. A son and his father get into a terrible accident; the father dies immediately while the son is rushed to the hospital for an urgent operation. A minute after being called in, a prominent surgeon steps out from the operating room and says “I cannot operate on this boy; he is my son”. Who is the surgeon? Take a guess!

13 February 2019

Selam Petersson

William Nordhaus’ Models – a Dubious Equation for the Climate Debate

In preparation for the COP24 climate change conference in Poland, in December 2018, researchers published a report from the Intergovernmental Panel on Climate Change (IPCC) outlining how significant the consequences of climate change would be following a global increase in temperature of just a half degree, from 1.5 to 2 degrees C. In the wake of the newly released IPCC report, alongside William Nordhaus’ Nobel Memorial award, this year’s winner in economics, a heated debate has surfaced.

04 February 2019

Salome Gelashvili

We Don't Need No Regulation: On Georgia’s Dairy and Livestock Sector

Dairy production in Georgia is a hot topic right now. Over the last couple of years, new state regulations have been adopted in this sector. The most widely discussed recent change in regulations prohibits the use of milk powder in cheese production. This regulation was adopted in 2015 but was amended in June of 2017 in order to better serve consumer interests.

01 February 2019

Mariam Lobjanidze, Mariam Tsulukidze, Norberto Pignatti

Do We Need to Worry About the Generation Deficit in the Electricity Market? And What Can Be Done About It?

Looking at annual consumption and generation trends, from 2012-2016, it is clear that generation typically exceeded consumption. Consequently, the generation-consumption gap remained positive. However, in 2017 this trend reverted, and the electricity generated by local resources on the Georgian market was no longer enough to supply the local demand. As shown in Figure 1, the gap widened even further in 2018; with the negative gap increasing by 30% (from 344 mln. kWh in 2017 to 447 mln. kWh in 2018).

25 January 2019

Levan Pavlenishvili, Norberto Pignatti

Why Everyone Should Pay to Use Water, and How This Could (and Probably Will) Be Done in Georgia

“At least we have a lot of water – why should I pay for it?” One can frequently hear this phrase in Georgia. This popular saying is based on the relative abundance of water resources the country has: roughly 15,597 cubic meters of renewable freshwater resources per capita a year, well above the 2,961 cubic meters per capita in the European Union (World Bank 2014). However, having a resource does not mean being able to use it, nor being able to do so in a sustainable manner.

28 December 2018

Mariam Tsulukidze, Mariam Lobjanidze, Norberto Pignatti

Is There Need For a More Competitive Electricity Generation Market?

Why do we care about competitiveness in energy markets? And, what are the benefits of increased competition from the supply side of the electricity market?

ISET Economist Blog

A blog about economics in the South Caucasus financed within the institutional grant by the Government of Sweden.