Brennan, Timothy J. - Economics Department, University of Maryland-Baltimore … - 2009
monopsony prices. Subsidizing energy efficiency to reduce electricity demand at the margin can solve that problem, if energy … building that plant" was the result of monopsony. A regulator acting as a monopsonist may need to avoid rationing demand at … efficiency and electricity use are substitutes. We may not observe these effects if the regulator can set price as well as …