This paper deals with theoretical aspects of long-term electricity supply security. Market prices and contractual arrangements on the physical and financial electricity markets do not allow the creation of sufficient incentives to invest in adequate capacity for guaranteeing the appropriate...

In Public Economics, the simple supply mechanism for a collective good is the centralised provision by government, and paid by all beneficiaries through a small and targeted tax. In the case of capacity adequacy in power supply, which could be considered as a collective good, two solutions of...