Motivated by the regulatory debate in electricity markets, we seek to understand how market design affects market … performance through its impact on investment incentives. For this purpose, we study a two-stage game in which firms choose their … investment incentives at the margin are poorer; indeed, under reasonable assumptions on the shape of the demand distribution, the …

The paper comprises a thorough survey of the literature on growth in Western Europe since 1950. This experience is put …-ante returns on investment. …

. We analyze the optimal time of transition from fossil fuel to renewables, amount of fossil fuel to leave in situ, and … phasing in of renewables, but fossil fuel is depleted more quickly. Global warming need thus not be alleviated. …

The British electricity supply industry has, with the exception of Nuclear Electric, now been privatized. Bulk supplies … of electricity are traded between two dominant generators and many suppliers in an unregulated `pool'. The generators …

Starting in 1998, the electricity market in England and Wales will be opened up to full competition, and all consumers … will be allowed to choose their electricity supplier. This promises to result in lower prices, but there will be additional … are likely to be large transfers from electricity companies (and the coal industry) to consumers, but the companies lose …

electric power system. The paper starts by deriving the (second-best) optimal prices and investment program when there are … achieve this optimal price and investment program. The paper analyses the implications of relaxing several of these …

We develop a theoretical model of long-run investment decisions on capacity in the context of a liberalized electricity … absence of any regulation, private investment decisions on capacity unambiguously lead to a socially sub-optimal outcome, and …