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Neither Lucky Nor Good - The Case of Electricity Deregulation in California

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Author Info

  • Jason P. Martinek

    (Federal Reserve Bank of Kansas City, USA)

  • Michael J. Orlando

    (Federal Reserve Bank of Kansas City, USA)

Abstract

We present an integrated summary of the various factors that contributed to shortages of electrical power in California in 2000. Several necessary conditions for the crisis are identified. We conclude that a sufficient remedy may be defined by policies that mitigate the limited incentives to invest in transmission capacity.

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File URL: http://www.esr.ie/Vol33_1Orlando.pdf
File Function: First version, 2002
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Bibliographic Info

Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 33 (2002)
Issue (Month): 1 ()
Pages: 75-82

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Handle: RePEc:eso:journl:v:33:y:2002:i:1:p:75-82

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Web page: http://www.esr.ie

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References

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  1. Paul L. Joskow & Edward Kohn, 2002. "A Quantitative Analysis of Pricing Behavior in California's Wholesale Electricity Market During Summer 2000," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-35.
  2. Severin Borenstein & James Bushnell & Frank Wolak, 2000. "Diagnosing Market Power in California's Restructured Wholesale Electricity Market," NBER Working Papers 7868, National Bureau of Economic Research, Inc.
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Cited by:
  1. Torstein Bye & Annegrete Bruvoll & Finn Roar Aune, 2006. "The importance of volatility in inflow in a deregulated hydro-dominated power market," Discussion Papers 472, Research Department of Statistics Norway.

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