Why has the Nordic electricity market worked so well?
AbstractThe general opinion among power industry representatives and electricity market analysts is that the Nordic electricity market has worked well. The purpose of this paper is to explore why the Nordic electricity market has performed well and to consider to what extent the Nordic experiences are relevant for other countries. In particular, we investigate causes as to why the Nordic market managed to withstand the supply shock in 2002 – 2003. A comparison is made with the California case, and the potential problem of market power abuse is investigated in particular. The relatively successful electricity market reform in the Nordic countries seems to be attributable to: a simple but sound market design, a successful dilution of market power, a strong political support for deregulation and voluntary, informal commitment to public service by the power industry.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Bergen, Department of Economics in its series Working Papers in Economics with number 18/05.
Length: 17 pages
Date of creation: 16 Dec 2005
Date of revision:
Contact details of provider:
Postal: Institutt for økonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
Web page: http://www.uib.no/econ/en
More information through EDIRC
Nordic electricity market; California electricity market; supply shock; market power.;
Find related papers by JEL classification:
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Nilsson, Mats, 2007. "Red light for Green Paper: The EU policy on energy efficiency," Energy Policy, Elsevier, Elsevier, vol. 35(1), pages 540-547, January.
- Amundsen, Eirik Schrøder & Bergmann, Lars, 2006. "Provision of reserve capacity on the Nordic electricity market: Principles and practises," Working Papers in Economics, University of Bergen, Department of Economics 01/06, University of Bergen, Department of Economics.
- Tang, Ali, 2014. "Does Gibratâ€™s Law Hold for Swedish Energy Firms?," HUI Working Papers, HUI Research 99, HUI Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kjell Erik Lommerud).
If references are entirely missing, you can add them using this form.