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 …

Several regulatory authorities worldwide have recently imposed forward contract obligations on electricity producers as … bidding in electricity markets, or in any other auction-based market. For this purpose, we introduce forward contracts in a …

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 …

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 …

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 …

electricity program allowing us to compute a levelized cost. We identify a modest escalation of capital cost and a larger than … electricity nevertheless remains cheaper. Comparisons with coal, natural gas and wind power are carried out to the advantage of …

how deregulation affects corporate structure. In the benchmark case where the government maximizes privatization proceeds …