Market Power in the Nordic Wholesale Electricity Market: A Survey of the Empirical Evidence
AbstractWe review the recent empirical research concerning market power on the Nordic wholesale market for electricity, Nord Pool. There is no evidence of blatant and systematic exploitation of system level market power on Nord Pool. However, generation companies seem from time to time able to take advantage of capacity constraints in transmission to wield regional market power. Market power can manifest itself in a number of ways which have so far escaped empirical scrutiny. We discuss investment incentives, vertical integration and buyer power, as well as withholding of base-load (nuclear) capacity.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 773.
Length: 31 pages
Date of creation: 22 Oct 2008
Date of revision:
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Electricity Markets; Deregulation; Market Power; Hydro Power; Transmission Constraints;
Find related papers by JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-11 (All new papers)
- NEP-COM-2008-11-11 (Industrial Competition)
- NEP-ENE-2008-11-11 (Energy Economics)
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