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The Smart Grid, Entry, and Imperfect Competition in Electricity Markets
Allcott, Hunt - 2014
Most US consumers are charged a near-constant retail price for electricity, despite substantial hourly variation in the wholesale market price. The Smart Grid is a set of emerging technologies that, among other effects, will facilitate "real-time pricing" for electricity and increase price...
Persistent link: https://www.econbiz.de/10013066116
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Sequential Markets, Market Power and Arbitrage
Ito, Koichiro - 2014
We develop a theoretical framework to characterize strategic behavior in sequential markets under imperfect competition … and limited arbitrage. Our theory predicts that these two elements can generate a systematic price premium. We test the …
Persistent link: https://www.econbiz.de/10013039636
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Price Risk, Production Flexibility, and Liquidity Management : Evidence from Electricity Generating Firms
Lin, Chen - 2017
Production inflexibility together with product price uncertainty creates price risk, which is a potentially important 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...
Persistent link: https://www.econbiz.de/10012955945
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Do Two Electricity Pricing Wrongs Make a Right? Cost Recovery, Externalities, and Efficiency
Borenstein, Severin - 2018
Advocates of using market mechanisms for addressing greenhouse gases and other pollutants typically argue that it is a necessary step in pricing polluting goods at their social marginal cost (SMC). Retail electricity prices, however, deviate from social marginal cost for many reasons. Some cause...
Persistent link: https://www.econbiz.de/10012916164
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Retail Electricity Competition
Joskow, Paul L.; Tirole, Jean - 2021
We analyze a number of unstudied aspects of retail electricity competition. We first explore the implications of load … homogeneous up to a scaling factor. In general, the combination of retail competition and load profiling does not yield the second … consumption, retail competition yields the Ramsey prices even when consumers can only partially respond to variations in real time …
Persistent link: https://www.econbiz.de/10013247282
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Reliability and Competitive Electricity Markets
Joskow, Paul L.; Tirole, Jean - 2021
Despite all of the talk about deregulation' of the electricity sector, a large number of non-market mechanisms have been imposed on emerging competitive wholesale and retail markets. These mechanisms include spot market price caps, operating reserve requirements, non-price rationing protocols,...
Persistent link: https://www.econbiz.de/10013247433
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On the Efficiency of Competitive Electricity Markets with Time-Invariant Retail Prices
Borenstein, Severin; Holland, Stephen P. - 2021
The standard economic model of efficient competitive markets relies on the ability of sellers to charge prices that vary as their costs change. Yet, there is no restructured electricity market in which most retail customers can be charged realtime prices (RTP), prices that can change as...
Persistent link: https://www.econbiz.de/10013247631
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Pass-Through of Emissions Costs in Electricity Markets
Fabra, Natalia - 2013
We measure the pass-through of emissions costs to electricity prices and explore its determinants. We perform both reduced-form and structural estimations based on optimal bidding in this market. Using rich micro-level data, we estimate the channels affecting pass-through in a flexible manner,...
Persistent link: https://www.econbiz.de/10013073200
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Setting with the Sun : The Impacts of Renewable Energy on Wholesale Power Markets
Bushnell, James - 2018
Policies supporting investment in renewable electricity have been a cornerstone of climate policy in many parts of the world. While previous empirical work explores the economic and environmental impacts of renewable production, the focus has exclusively been on the short-run impacts of...
Persistent link: https://www.econbiz.de/10012911703
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An Experimental Comparison of Carbon Pricing Under Uncertainty in Electricity Markets
Davis, Trevor L.; Thurber, Mark C.; Wolak, Frank - 2022
We report on an economic experiment that compares outcomes in electricity markets subject to carbon-tax and cap-and-trade policies. Under conditions of uncertainty, price-based and quantity-based policy instruments cannot be truly equivalent, so we compared three matched carbon-tax/cap-and-trade...
Persistent link: https://www.econbiz.de/10014264681