Capacity constraints on transmissions of electricity are raising an increasing policy concern as electricity markets … this paper is to highlight the impact of transmission capacity constraints and transmission costs on electricity market …

production capacity. In a zonal pricing electricity market, the one proposed by the European Commission to integrate the European … electricity markets, I analyze the effects that investments in transmission and production capacity have on consumer welfare and …

Initially created as afterthoughts to competitive electricity markets, capacity markets were intended to enhance system … reliability. They have evolved into massive, highly controversial, and poorly understood billion-dollar institutions. Electricity …