Carreón-Rodríguez, Víctor G.; Rosellón, Juan - In: Economía Mexicana NUEVA ÉPOCA XVIII (2009) 2, pp. 249-282
with capacity payments, has eventually resulted in capacity generation expansion similar to what would be attained in an … investment in capacity reserves. We analyze various measures to cope with this problem, including moth-ball reserves, capacity … payments, icap and call options. We then construct a model to analyze the structure of incentives for the expansion of …