This paper presents the application of a mechanism that provides incentives to promote transmission network expansion in the electricity system of the Ontario province. Such mechanism combines a merchant approach with a regulatory approach. It is based on the rebalancing of a two-part tariff...

This paper studies resource adequacy, i.e. the market design dilemma of ensuring enough generation capacity in the long run. International experiences have shown that it is difficult that the market alone provides incentives to attract enough investment in capacity reserves. We analyze various...

This paper addresses the effect of rules of origin regulations on the use of domestic factors of production in the country of origin. In the case of a firm that is a perfect competitor in the final product market, these regulations have two effects: first there is a direct substitution effect...

After the regulatory reform experienced in the Mexican gas sector, three areas with market power remained. Production is a legal monopoly of Pemex. Transportation and distribution are natural monopolies. Distributor’s gas sales to (mainly residential) customers are potentially monopolistic in...