The effect of counter-trading on competition in electricity markets
| Autor: | Justin Dijk, Bert Willems |
|---|---|
| Přispěvatelé: | Environmental Economics, Research Group: Economics, Department of Economics |
| Jazyk: | angličtina |
| Rok vydání: | 2011 |
| Předmět: |
Factor market
020209 energy media_common.quotation_subject 02 engineering and technology Management Monitoring Policy and Law Counter-trading Microeconomics Competition (economics) Market power SDG 17 - Partnerships for the Goals Energy(all) 0502 economics and business 0202 electrical engineering electronic engineering information engineering Economics Electricity market 050207 economics Industrial organization media_common Lower of cost or market business.industry 05 social sciences Socialization (Marxism) Congestion management General Energy Electricity business Welfare |
| Zdroj: | Dijk, J J & Willems, B 2011, ' The effect of counter-trading on competition in electricity markets ', Energy Policy, vol. 39, no. 3, pp. 1764-1773 . https://doi.org/10.1016/j.enpol.2011.01.008 Energy Policy, 39(3), 1764-1773. Elsevier BV Energy Policy, 39(3), 1764-1773. ELSEVIER SCI LTD |
| ISSN: | 0301-4215 |
| DOI: | 10.1016/j.enpol.2011.01.008 |
| Popis: | In a competitive electricity market, nodal pricing is the most efficient way to manage congestion. Counter-trading is inefficient as it gives the wrong long term signals for entry and exit of power plants. However, in a non-competitive market, additional entry will improve the competitiveness of the market, and will increase social benefit by reducing price-cost margins. This paper studies whether the potential pro-competitive entry effects could make counter-trading more efficient than nodal pricing. We find that this is unlikely to be the case, and expect counter-trading to have a negative effect on overall welfare. The potential benefits of additional competition (more competitive prices and lower production cost) do not outweigh the distortions (additional investment cost for the entrant, and socialization of the congestion cost to final consumers). © 2011 Elsevier Ltd. |
| Databáze: | OpenAIRE |
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