marginal cost of suppliers. The leading example is the electricity industry, where there is a capacity market clearing before … the spot market. -- capacity market ; procurement auction ; electricity market ; competitive equilibrium …

production capacity. In a zonal pricing electricity market, the one proposed by the European Commission to integrate the European … electricity markets, I analyze the effects that investments in transmission and production capacity have on consumer welfare and …

In this paper, we study the problem of long-term capacity adequacy in electricity markets. Two investment incentive …-only market. We use the dynamic programming method and real option theory to develop two dynamic models that enable one to assess …

This paper extends the equilibrium electricity pricing model in Bessembinder and Lemmon (2002). The new model accounts … for constrained capacity, an important feature in electricity markets. Explicitly including a role for capacity allows the … model to reproduce the price spikes observed in wholesale electricity markets using reasonable parameter values. The model …

Upstream producers that possess market power, sell forwards with a lengthy duration to regional electricity companies … (REC). As part of the liberalization of the electricity market, RECs have been privatized and exposed to a possible …