This article explores key market design issues to be addressed in future electricity markets dominated by intermittent renewable generation with near zero private marginal costs for generating electricity. Changing technology mixes will change market outcomes, but they do not change the...

World and U.S. energy intensities have declined over the past century, falling at an average rate of approximately 1.2–1.5 percent a year. The decline has persisted through periods of stagnating or even falling energy prices, suggesting the decline is driven in large part by autonomous...

Recently, macroeconomists have begun to study optimal policy in heterogeneous agent models with incomplete markets, or Aiyagari-Huggett models. A natural way to formulate an optimal policy problem in the model is by using a constrained planner (Davila , 2012), a planner who cannot complete...

This paper introduces work - leisure choice into a constrained optimal policy problem in a neoclassical growth model with idiosyncratic risk and incomplete markets. The constrained planner cannot complete markets, but must improve welfare subject to agents' budget constraints. As such, rather...