Restructuring Electricity Markets when Demand is Uncertain

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Restructuring Electricity Markets when Demand is Uncertain

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dc.contributor.author Buehler, Stefan en_US
dc.contributor.author Boom, Anette en_US
dc.date.accessioned 2009-02-04T10:27:48Z
dc.date.available 2009-02-04T10:27:48Z
dc.date.issued 2006-11-15T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/7589
dc.description.abstract We examine the effects of reorganizing electricity markets on capacity investments, retail prices and welfare when demand is uncertain. We study the following market configurations: (i) integrated monopoly, (ii) integrated duopoly with wholesale trade, and (iii) separated duopoly with wholesale trade. Assuming that wholesale prices can react to changes in retail prices (but not vice versa), we find that generators install sufficient capacity to serve retail demand in each market configuration, thus avoiding blackouts. Furthermore, aggregate capacity levels and retail prices are such that the separated (integrated) duopoly with wholesale trade performs best (worst) in terms of welfare. Keywords: Electricity, Investments, Generating Capacities, Vertical Integration, Monopoly and Competition. JEL-Classification: D42, D43, D44, L11, L12, L13 en_US
dc.format.extent 29 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2006-011 en_US
dc.subject.other el-, gas-, varme- og energiforsyning en_US
dc.subject.other konkurrence en_US
dc.subject.other monopolistisk marked en_US
dc.title Restructuring Electricity Markets when Demand is Uncertain en_US
dc.type wp en_US
dc.accessionstatus modt06nov15 mielmo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Økonomisk Institut en_US
dc.contributor.departmentshort ECON en_US
dc.contributor.departmentuk Department of Economics en_US
dc.contributor.departmentukshort ECON en_US
dc.idnumber x656517866 en_US
dc.publisher.city København en_US
dc.publisher.year 2006 en_US
dc.title.subtitle Effects on Capacity Investments, Prices and Welfare en_US


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