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A Spatial Equilibrium Analysis Of Japan'S Electric Power Network

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  • Shu‐ichi Akiyama
  • Nobuhiro Hosoe

Abstract

A key intention of the regulatory reform of transmission charge schemes for Japan's electric power market was to promote inter‐regional competition between regional power companies by lowering long‐distance transmission charges with postage‐stamp pricing. Such a reform was expected to cause extensive use of inter‐regional links and cause congestion. Congestion segments the nationwide market into several regional markets, making the reform less successful. We develop a nine‐region spatial equilibrium model to simulate the reform during the peak‐load hours. We find that the reform would lead to significant increases of inter‐regional transmission and cause congestion at the links between the 50‐ and 60‐Hz areas.

Suggested Citation

  • Shu‐ichi Akiyama & Nobuhiro Hosoe, 2011. "A Spatial Equilibrium Analysis Of Japan'S Electric Power Network," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 23(2‐3), pages 114-136, July.
    • Handle: RePEc:bla:revurb:v:23:y:2011:i:2-3:p:114-136
    DOI: 10.1111/j.1467-940X.2011.00180.x
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    File URL: https://doi.org/10.1111/j.1467-940X.2011.00180.x
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    Cited by:

    1. Nobuhiro Hosoe & Makoto Tanaka, 2012. "How Much is TEPCO Worth?–Estimating the Fundamental Value of its Thermal Plants," GRIPS Discussion Papers 12-02, National Graduate Institute for Policy Studies.
    2. Nobuhiro Hosoe, 2012. "Nuclear Power Plants Shutdown and Alternative Power Plants Installation–A Nine-region Spatial Equilibrium Analysis for the Electric Power Market in Japan," GRIPS Discussion Papers 12-11, National Graduate Institute for Policy Studies.
    3. Hosoe, Nobuhiro, 2015. "Nuclear power plant shutdown and alternative power plant installation scenarios – A nine-region spatial equilibrium analysis of the electric power market in Japan," Energy Policy, Elsevier, vol. 86(C), pages 416-432.
    4. Hosoe, Nobuhiro & Tanaka, Makoto, 2012. "Divestiture of TEPCO for reparation for the Fukushima nuclear accident–A path to vertical unbundling," Energy Policy, Elsevier, vol. 51(C), pages 207-212.

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