Most US consumers are charged a near-constant retail price for electricity, despite substantial hourly variation in the …-time pricing" for electricity and increase price elasticity of demand. This paper simulates the effects of this increased demand … elasticity using counterfactual simulations in a structural model of the Pennsylvania-Jersey-Maryland electricity market. The …

Electricity restructuring has created the opportunity for producers to exercise market power. Oligopolists increase … implications of production inefficiencies attributed to market power in the Pennsylvania, New Jersey, and Maryland electricity … market. Air pollution fell substantially during 1999, the year in which both electricity restructuring and new environmental …

In electricity markets, generators are rewarded both for providing energy and for enabling grid reliability. The two … functions are compensated in separate markets: energy markets and ancillary services markets. We provide evidence of changes in … the fuel mix in the energy market that is driven by exogenous changes in an ancillary services market. We provide quasi …

easily hedge the electricity price through derivative markets. Capital market liquidity and balance sheet liquidity appear to … factor for firms' liquidity management. One industry for which price risk can be measured is the electricity producing … industry. We use data on hourly electricity prices in 41 markets to measure fluctuations in output prices and information on …

This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for … commodity-exporting countries. We show that the introduction of hedging instruments such as futures and options enhances …

speculators are capital constrained, and commodity producers have hedging demands for commodity futures. Increases (decreases) in … producers' hedging demand (speculators' risk-capacity) increase hedging costs via price-pressure on futures, reduce producers … associated with producer hedging demand rises when speculative activity reduces. We conclude that limits to financial arbitrage …

comparable to that of returns in stock markets. Evidence is shown that there may be only minimal possibility of cross hedging … examined. Such markets, by allowing hedging of these aggregate income risks, might make for dramatically more effective …