This paper proposes an extended version of the analytical structural model for the electricity market developed in a previous paper. The presented electricity price process is driven by stochastic load and random plant availability as well as stochastic marginal generation cost factors embedded...

In this paper, we examine the use of carbon pricing and an output-based subsidy in a market with imperfect competition. We consider a carbon pricing policy in Alberta's electricity market as a case study. This policy consists of two phases. In the first phase, the carbon price is doubled with...

In this paper we analyze the time series of daily mean prices generated in the Italian electricity market, which started to operate as a Pool in April 2004. The objective is to characterize the high degree of autocorrelation and multiple seasonalities in the electricity prices. We use periodic...

This research presents an application of the Hogan, Rosellón and Vogelsang (2010) (HRV) mechanism to promote electricity transmission network expansion in the Peruvian electricity transmission system known as SEIN (Sistema Eléctrico Interconectado Nacional). The HRV mechanism combines the...

The study is motivated by the question “what is the optimal tariff design?” While we do not offer an answer to this question, we use the different designs in four select countries to illuminate the issues involved in designing electricity network tariffs. Electricity networks are a resource...

Feed-in tariffs are extremely popular. Ubiquitous in Europe and across the globe, studies often suggest that feed-in tariffs (“FITs”) tend to outperform renewable portfolio standards (“RPSs”). The accepted logic is that this is because FITs offer certainty RPSs do not. Under a feed-in...

Two legal instruments for promoting renewable energy production - renewable portfolio standards (“RPSs”) and feed-in tariffs (“FITs”) - are in use across the globe. Many studies pit these policies against each other, treating them as either-or options. Some analyses suggest that FITs...

In theory real time pricing ensures more efficient electricity markets than time of use pricing. However, people are prone to habits and regularity, so real time pricing may impose a greater cost of reacting on consumers. In a randomized field experiment we compared the cost of reacting to...

The efficient deployment of green technologies, and more generally, the clean energy transition, will require electricity tariff reforms. Existing tariff schemes often fail to achieve basic economic objectives. They set prices per unit that either exceed or fall short of the social marginal...

We analyze the pass-through of cost changes to retail tariffs in the German electricity market over the 2007 to 2014 period. We find an average pass-through rate of around 60%, which significantly varies with demand factors: while the pass-through rate to baseline tariffs, where firms have...