studies analyzing the impact of a carbon tax on investment decisions have used cost-minimizing generation expansion models or … other analytical frameworks that omit strategic investment in new generation capacity. Using the framework of an equilibrium … problem with equilibrium constraints, we investigate whether generation capacity investment decisions by strategic firms in …

regulatory environment on transmission line expansion (by the regulator) and investment in generation capacity (by private firms …) in liberalized electricity markets. The basic model analyzes investment decisions of the transmission operator (TO) and … based network tariffs, although investment slightly differs across those regimes. …

regulatory environment on transmission line expansion (by the regulator) and investment in generation capacity (by private firms …) in liberalized electricity markets. The basic model analyzes investment decisions of the transmission operator (TO) and … based network tariffs, although investment slightly differs across those regimes. …

analysis of investment incentives is still missing. Existing models, as the peak-load-pricing approach, analyze welfare optimal … investment and find that optimal investment is higher with more competitive spot markets. In this article we want to extend the … analysis to investment decisions of strategic firms that anticipate competition on many consecutive spot markets with …