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 …

electric power system. The paper starts by deriving the (second-best) optimal prices and investment program when there are … contingent on real time prices. It then examines the assumptions required for a competitive wholesale and retail market to … assumptions. First, it analyzes the interrelationships between regulator-imposed price caps and capacity obligations. It goes on …

The EU faces challenges in reforming the Gas and Electricity Directives to implement the single market in electricity …. A key issue is striking the right balance between complete liberalisation and ensuring adequate capacity and investment …

indicator duality and production theory. The paper shows that users benefited through lower real water prices -although users in … shows that taxpayers are the main losers as subsidies are still needed. There are also serious efficiency-equity trade …

efficiency, taking into account the regulatory changes that have affected the European airline industry. We construct and … estimate a model that includes demand, capacity, and cost equations. The latter accounts for inefficiency and cost …