We analyze the effects of commonly employed renewable compensation policies on firm behaviorin an imperfectly competitive market. We consider a model where firms compete for renewablecapacity in a procurement auction prior to choosing their forward contract positions and competingin wholesale...

We examine the role of information transparency in Alberta's wholesale electricity market. Using data on firms' bidding behavior, we analyze whether firms utilize information revealed in near real-time through the Historical Trading Report (HTR), which is released 10 minutes after each hour and...

A considerable literature has extolled the virtues of transitioning away from rate-of-return regulation for infrastructure-intensive industries. I find that for a large-scale transmission network like the U.S. natural gas pipeline system, transmission capacity under rate-of-return regulation may...

What happens when motor fuel prices rise? In the US, the National Household Travel Survey (NHTS) collects information about car ownership and use, and travel during a typical day, for over 100,000 households. It is conducted only once every 8 years, and does not include a longitudinal component,...

The authors demonstrate that the United States profits handsomely in all circumstances by imposing an embargo on imports of foreign crude oil. The US removes its exposure to foreign oil supply shocks and recovers deadweight lost producers surplus. The embargo plan will lead to greater domestic...

The US energy strategy that would change the outlook worldwide is that for replacing crude oil with other liquids fuels to run automotive engines. Other strategies wander off into exotics requiring subsidies to produce heat or electricity not diesel, heating oil or gasoline. There is no...

In many practical statistical situations, it is desirable to restrict the flexibility of nonparametric regression models to accommodate prior information. We propose an estimator for regression models with a smoothness penalty and constraints imposed by the nature of the problem. Our estimator...

The flame of oil is not eternal. The horizon carries all signs of peak oil. Saudi Arabia, the world’s biggest crude oil producer and exporter risks becoming an oil importer probably by 2025 if current economic, demographic and security trends continue into the future. Saudi oil production...

If the creditworthiness of a counterparty is a derivative of a commodity price, there is the potential to have right- or wrong-way exposures in commodity transaction. Identifying them is important, because otherwise credit costs are inadequately calculated. This is especially important if one...