This paper addresses the issue of investment in electricity generation in the context of a liberalised market. We use the main results derived from a theoretical model where firms invest strategically to simulate the Spanish electricity system with real-world data. Our results indicate that,...

This paper is a law and economics analysis about the effects of the recent decision to exempt Mexico's energy regulator from a regulatory impact analysis. This occured in spite of receiving an opinion from the competition authority about competition effects of changing the rules of the game for...

The world's first multinational electricity market was formed with the creation of the Nordic power exchange, Nord Pool. We analyze the incentives to undertake transmission network investment in the context of the liberalized Nordic electricity market. Welfare improving investment in a...

Under what conditions does cost-of-service regulation lead firms to distort costs? This paper analyzes changes in fuel procurement practices by coal- and natural gas-fired electricity generating plants in the United States following state-level legislation that ended cost-of-service regulation...

Incumbent vertical market power in deregulating markets can be anticompetitive, as seen in the current process of retail electricity restructuring. This paper uses the AT&T antitrust case’s Bell Doctrine precedent of “quarantine the monopoly” as a case study in incumbent vertical market...

Although the allocative efficiency benefits of competition are a tenet of microeconomic theory, the relation between competition and technical efficiency is less well understood. Neoclassical models of profit-maximization subsume static cost-minimizing behavior regardless of market...

This paper examines the practice of tariff determination process in a newly created regulatory institutional framework in India. The Indian electricity regulation provides an opportunity to do comparative analysis of the approaches taken by state (provincial) regulators while fixing prices for...

This paper investigates whether European electricity market reforms have induced any changes in firm efficiency either through productive, allocative or dynamic efficiency improvements. In particular, this ex-post analysis looks closely at productivity effects of changing industry structure,...

Reviewing the development of network access charges in the German electricity market since 2002 reveals significant variation. While some firms continually increased or decreased their access charges, a variety of firms exhibited discontinuous behavior with price changes in both directions. From...