Market prices make it possible to realise returns on capital investments in the electricity sector, but these prices … mechanism allows a single producer (or multiple producers with the same production mix) to recover its (their) costs despite the …

We develop a theoretical model of long-run investment decisions on capacity in the context of a liberalized electricity … the level of capacity that maximizes social welfare, and compare it to a decentralized outcome. We show that in the … absence of any regulation, private investment decisions on capacity unambiguously lead to a socially sub-optimal outcome, and …

Since the late 90s,, European industries of electricity and gas have been subject to a process of concentration at both … the properties of the energy industry with new market structures in terms of dynamic efficiency (the ability to ensure …

We propose a joint modeling of spot electricity prices, forwards prices and other derivative prices, using recent … prices, while allowing for a large flexibility in the modeling of dynamics, spikes, and seasonality, both in the historical … filter and the Kitagawa-Hamilton filter. Finally, an application based on French spot prices and forward products is proposed. …

A number of countries have recently responded to high and volatile commodity prices by setting up commodity funds. In … commodity funds and discuss incentives that can be used to ensure that commodity risk is managed with greater efficiency and …

are forward contracts on fuels and electricity. The presence of production capacities and electricity demand makes such a … premium is provided showing the contribution of demand and capacity to the futures prices. We show that when far from delivery … marginal fuel price, producing price spikes. We focus on pricing and hedging electricity derivatives. The hedging instruments …

a model in which facilities can produce output at a privately known cost up to a previously-determined capacity level …. In such a model, the amount of slack in the firm is shown to be pro-cyclical. Indeed, as capacity constraints become … capacity. …