I analyze the ability of capacity payment mechanisms to alleviate underinvestment in electricity generation capacity. I derive the optimal capacity payment parameters under two capacity payment mechanisms, when capacity demand is price-elastic and when it is price-inelastic. Price-elastic...

In a deregulated market, the decision to add generation rests with private investors. This paper evaluates how generator profits are affected by increasing wind generation. Using hourly historical data for the Irish Single Electricity Market, we simulate new series of electricity prices,...

El propósito de este artículo es hacer un análisis de la seguridad en el suministro de electricidad en Colombia, considerando el nuevo esquema del Cargo por Confiabilidad, modelo adoptado en Colombia para garantizar las inversiones en generación. Para esto se analiza la diferencia entre...

For many economic problems standard statistical analysis, based on the notion of stationarity, is not adequate. These include modeling seasonal decisions of consumers, forecasting business cycles and - as we show in the present article - modeling wholesale power market prices. We apply standard...

The present paper investigates whether Greek gasoline prices respond symmetrically to changes in international oil prices. The study uses all available observations and applies the TAR (Threshold Auto-Regressive) methodology, which is considered to be the most reliable econometric technique...

The aim of this paper is to investigate the causal relationship between agricultural prices in South Africa and global oil prices. A nonlinear Granger causality test based on moment conditions, introduced by Nishiyama et al (2011) is employed and we find that there is indeed a causal...

In competitive product markets, repeated interaction among producers with similar economic characteristics would be expected to result in convergence of their behaviors. If convergence does not occur, it raises fundamental questions related to the sustainability of heterogeneous competitive...