Screening instruments for monitoring market power — The Return on Withholding Capacity Index (RWC)
| Autor: | Susanne Thorwarth, Olivia Bodnar, Marc Bataille, Alexander Steinmetz |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
Index (economics) Market surveillance business.industry 020209 energy 05 social sciences 02 engineering and technology Wholesale market General Energy Incentive 0502 economics and business 0202 electrical engineering electronic engineering information engineering Position (finance) Electricity Market power 050207 economics business Industrial organization Drawback |
| Zdroj: | Energy Economics. 81:227-237 |
| ISSN: | 0140-9883 |
| DOI: | 10.1016/j.eneco.2019.03.011 |
| Popis: | While markets have been liberalized all over the world, incumbents often still hold a dominant position, e.g. on energy markets. Thus, wholesale electricity markets are subject to market surveillance. Nevertheless, consolidated findings on abusive practices of market power and their cause and effect in these markets are scarce and non-controversial market monitoring practices fail to exist. Right now, the Residual Supply Index (RSI) is the most important instrument for market monitoring. However, a major drawback of this index is its focus on just one specific aspect of market power in wholesale electricity markets whereas different consequences of market power are possible. Hence, markets could be distorted in several ways and we propose the “Return on Withholding Capacity Index” (RWC) as a complementary index to the RSI. The index is a measure of the firms' incentive to withhold capacity. The benefits and practicability of the RWC are shown by an application on data for the German-Austrian electricity wholesale market in 2016. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full Text from ScienceDirect