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A CGE analysis for quantitative evaluation of electricity market changes

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  • Hwang, Won-Sik
  • Lee, Jeong-Dong

Abstract

Risk and uncertainty entailed by electricity industry privatization impose a heavy burden on the political determination. In this sense, ex ante analyses are important in order to investigate the economic effects of privatization or liberalization in the electricity industry. For the purpose of fulfilling these quantitative analyses, a novel approach is developed, incorporating a top-down and bottom-up model that takes into account economic effects and technological constraints simultaneously. This study also examines various counterfactual scenarios after Korean electricity industry reform through the integrated framework. Simulation results imply that authorities should prepare an improved regulatory system and policy measures such as forward contracts for industry reform, in order to promote competition in the distribution sector as well as the generation sector.

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  • Hwang, Won-Sik & Lee, Jeong-Dong, 2015. "A CGE analysis for quantitative evaluation of electricity market changes," Energy Policy, Elsevier, vol. 83(C), pages 69-81.
    • Handle: RePEc:eee:enepol:v:83:y:2015:i:c:p:69-81
    DOI: 10.1016/j.enpol.2015.04.006
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    Cited by:

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    3. Erisa Dautaj Şenerdem & K. Ali Akkemik, 2020. "Evaluation of the reform in the Turkish electricity sector: a CGE analysis," International Journal of Economic Policy Studies, Springer, vol. 14(2), pages 389-419, August.
    4. Timilsina, Govinda R. & Pang, Jun & Yang, Xi, 2021. "Macroeconomic impacts of power sector reforms in China," Energy Policy, Elsevier, vol. 157(C).
    5. Peng Ou & Ruting Huang & Xin Yao, 2016. "Economic Impacts of Power Shortage," Sustainability, MDPI, vol. 8(7), pages 1-21, July.
    6. Hannum, Christopher & Cutler, Harvey & Iverson, Terrence & Keyser, David, 2017. "Estimating the implied cost of carbon in future scenarios using a CGE model: The Case of Colorado," Energy Policy, Elsevier, vol. 102(C), pages 500-511.
    7. Jieting Yin & Qingyou Yan & Kaijie Lei & Tomas Baležentis & Dalia Streimikiene, 2019. "Economic and Efficiency Analysis of China Electricity Market Reform Using Computable General Equilibrium Model," Sustainability, MDPI, vol. 11(2), pages 1-22, January.
    8. Kwang Il Kim, 2019. "Investigation of Japanese electricity industry using a CGE model of translog function," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-18, December.
    9. Chen, Hao & Yan, Haobo & Gong, Kai & Geng, Haopeng & Yuan, Xiao-Chen, 2022. "Assessing the business interruption costs from power outages in China," Energy Economics, Elsevier, vol. 105(C).

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