This article explores key market design issues to be addressed in future electricity markets dominated by intermittent renewable generation with near zero private marginal costs for generating electricity. Changing technology mixes will change market outcomes, but they do not change the...

The energy arbitrage prospects for battery energy storage systems differ under zonal and nodal market designs. We emphasize that batteries that relieve congestion are able to privately capture the economic benefit they create from their actions under nodal market designs. We show that in...

Do households comprehend the nature of price tail-risks inherent to real-time electricity pricing plans? We develop a randomized and incentivized experiment calibrated to real-world price distributions and find that (a) probabilistic risk disclosure elicits greater demand for real-time pricing...

Introducing climate change policies such as carbon pricing can bring substantial costs for fossilfuel- fired electricity generators, with incumbents often granted a transitional allocation of free emission permits. The free allocation of emission permits and the passthrough of carbon prices to...