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Interfuel substitution in US electricity generation

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  • James Ko
  • Carol Dahl

Abstract

Ongoing changes in the US electricity market include restructuring and increased competition. With this unfettering of the market, the fuel choice in generation is expected to become more flexible and responsive. To investigate this hypothesis, studies of US electricity fuel choices over the last three decades are summarized and the most recent analysis is provided on a market very different from the one on which earlier studies were done. Modern data handling techniques allow the consideration of the most comprehensive database including 185 utilities on monthly data for 1993. This paper finds fuel choice to show a considerable amount of price responsiveness, the amount of responsiveness is sensitive to the fuel substitution possibilities within the utility, and the amount of responsiveness seems to have increased recently for oil and natural gas.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 33 (2001)
Issue (Month): 14 ()
Pages: 1833-1843

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Handle: RePEc:taf:applec:v:33:y:2001:i:14:p:1833-1843

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Cited by:
  1. Bartocci, Anna & Pisani, Massimiliano, 2013. "“Green” fuel tax on private transportation services and subsidies to electric energy. A model-based assessment for the main European countries," Energy Economics, Elsevier, vol. 40(S1), pages S32-S57.
  2. Elena Verdolini & Nick Johnstone & Ivan Hašcic, 2011. "Technological Change, Fuel Efficiency and Carbon Intensity in Electricity Generation: A Cross-Country Empirical Study," Working Papers 2011.92, Fondazione Eni Enrico Mattei.
  3. Gao, Jing & Nelson, Robert & Zhang, Lei, 2013. "Substitution in the electric power industry: An interregional comparison in the eastern US," Energy Economics, Elsevier, vol. 40(C), pages 316-325.
  4. Valentina Bosetti & Emanuele Massetti & Massimo Tavoni, 2007. "The WITCH Model. Structure, Baseline, Solutions," Working Papers 2007.10, Fondazione Eni Enrico Mattei.
  5. Gerlagh, Reyer, 2007. "Measuring the value of induced technological change," Energy Policy, Elsevier, vol. 35(11), pages 5287-5297, November.
  6. Pettersson, Fredrik & Söderholm, Patrik & Lundmark, Robert, 2012. "Fuel switching and climate and energy policies in the European power generation sector: A generalized Leontief model," Energy Economics, Elsevier, vol. 34(4), pages 1064-1073.

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