Advanced Search
MyIDEAS: Login to save this paper or follow this series

Seamless Electricity Trade between Canada and US Northeast


Author Info

  • Bernard, Jean-Thomas
  • Clavet, Frederic
  • Ondo, Jean-Cleophas


We analyse how the wholesale electricity market deregulation could modify exchanges between three Canadian regions (Ontario, Quebec and New Brunswick) and two U.S. regions (New York and New England), which were already trading electricity before the regulatory change took place in 1997. We find that the pre-1997 exchanges already made possible fuel cost savings of $397.2 million per year while deregulation adds annual savings of $358.7 million. Canadian regions are the main beneficiaries under the assumption that exports are priced at the marginal costs of the importing regions. Imports from the Canadian regions, although significant, are not large enough to lower the marginal costs of the U.S. regions. Hence electricity deregulation across the border should not significantly decrease prices in the U.S. regions although the latter are becoming more dependant upon imports from Canada. Greenhouse gas emissions increase by 4.3 Mt CO2 eq. in the wake of the open wholesale electricity market because of the low cost of coal, particularly in Ontario. Environmental concerns and the limited availability of additional hydroelectric power in Canada could change the trade patterns as electricity demand continue to grow.

Download Info

If 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.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 0307.

as in new window
Date of creation: 2003
Date of revision:
Handle: RePEc:lvl:laeccr:0307

Contact details of provider:
Postal: Pavillon J.A. De Sève, Québec, Québec, G1K 7P4
Phone: (418) 656-5122
Fax: (418) 656-2707
Web page:
More information through EDIRC

Related research

Keywords: Electricity; deregulation; trade;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Yun, Won-Cheol & Zhang, Zhong Xiang, 2006. "Electric power grid interconnection in Northeast Asia," Energy Policy, Elsevier, vol. 34(15), pages 2298-2309, October.
  2. Jean-Thomas Bernard & Frédéric Clavet & Jean-Cléophas Ondo, 2004. "Electricity Production and CO2 Emission Reduction: Dancing to a Different Tune Across the Canada-US Border," Canadian Public Policy, University of Toronto Press, vol. 30(4), pages 401-426, December.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:lvl:laeccr:0307. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johanne Perron).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.