Production from zero marginal cost solar panels reduces the amount of energy produced by fossil-fuel-fired power plants during the day. Yet, we find that the operating profits earned by fossil-fuel plants in Western Australia increased by 15% coincident with the doubling of rooftop solar...

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...

This article finds that the introduction of a carbon tax increased short-run carbon emissions in an imperfectly competitive wholesale electricity market. The unique feature of the Western Australian setting is that the same carbon tax was introduced and later repealed, but the market structure...

We report on the results of a field experiment in Puebla, Mexico that informed randomly-selected households facing a nonlinear price schedule about how different electricity-consuming actions might change their electricity bills. Households that received this 20-minute, in-person intervention...

The energy arbitrage prospects for battery energy storage systems differ under zonal and nodal market designs. We emphasize that batteries that relieve congestion are able to privately capture the economic benefit they create from their actions under nodal market designs. We show that in...

Wholesale electricity prices can rapidly change in real-time, yet households usually face fixed-price electricity tariffs. Therefore, households that predominantly use energy when wholesale prices are low implicitly cross-subsidize households whose energy use is more weighted to high-price...