Brennan, Timothy J. - Economics Department, University of Maryland-Baltimore … - 2009
The cliché in the electricity sector, the "cheapest power plant is the one we don’t build," seems to neglect the … monopsony prices. Subsidizing energy efficiency to reduce electricity demand at the margin can solve that problem, if energy … efficiency and electricity use are substitutes. We may not observe these effects if the regulator can set price as well as …