This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Merchant Transmission Investment Author info | Abstract | Publisher info | Download info | Related research | Statistics Paul Joskow
Jean Tirole
Additional information is available for the following
registered author(s):
We examine the performance attributes of a merchant transmission investment framework that relies on market driven' transmission investment to provide the infrastructure to support competitive wholesale markets for electricity. Under a stringent set of assumptions, the merchant investment model has a remarkable set of attributes that appear to solve the natural monopoly problem traditionally associated with electricity transmission networks. We extend the merchant investment model to incorporate imperfections in wholesale electricity markets, lumpiness in transmission investment opportunities, stochastic attributes of transmission networks and associated property rights definition issues, the effects of behavior of transmission owners and system operators on transmission capacity, maintenance and reliability, coordination and bargaining considerations, forward contract, commitment and asset specificity issues. Incorporating these more realistic attributes of transmission networks and the behavior of transmission owners and system operators undermines the attractive properties of the merchant model and leads to inefficient transmission investment decisions.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
9534.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length:
Date of creation: Mar 2003Date of revision:
Handle: RePEc:nbr:nberwo:9534Note: IOContact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A. Phone: 617-868-3900 Email: Web page: http://www.nber.org More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: ().
Keywords: Other versions of this item:
Article Paper Joskow, P. & Tirole, J., 2003.
"Merchant Transmission Investment ,"
Cambridge Working Papers in Economics
0324, Faculty of Economics, University of Cambridge.
[Downloadable!] Paul Joskow & Jean Tirole, 2003.
"Merchant Transmission Investment ,"
Working Papers
0304, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
[Downloadable!] Joskow, Paul & Tirole, Jean, 2004.
"Merchant Transmission Investment ,"
IDEI Working Papers
263, Institut d'Économie Industrielle (IDEI), Toulouse.
Find related papers by JEL classification: L9 - Industrial Organization - - Industry Studies: Transportation and Utilities L5 - Industrial Organization - - Regulation and Industrial Policy
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Holmstrom, Bengt & Tirole, Jean, 2000.
"Liquidity and Risk Management ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 32(3), pages 295-319, August.
Green, Richard, 1999.
"The Electricity Contract Market in England and Wales ,"
Journal of Industrial Economics ,
Blackwell Publishing, vol. 47(1), pages 107-24, March.
[Downloadable!] (restricted)
Aghion, Philippe & Bolton, Patrick, 1987.
"Contracts as a Barrier to Entry ,"
American Economic Review ,
American Economic Association, vol. 77(3), pages 388-401, June.
Paul L. Joskow, 2003.
"Electricity Sector Restructuring And Competition - Lessons Learned ,"
Working Papers
0314, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
[Downloadable!]
Other versions: Bushnell, James B & Stoft, Steven E, 1996.
"Electric Grid Investment under a Contract Network Regime ,"
Journal of Regulatory Economics ,
Springer, vol. 10(1), pages 61-79, July.
Oren, Shmuel S. & Spiller, Pablo T. & Varaiya, Pravin & Wu, Felix, 1995.
"Nodal prices and transmission rights: A critical appraisal ,"
The Electricity Journal ,
Elsevier, vol. 8(3), pages 24-35, April.
[Downloadable!] (restricted)
Thomas-Olivier Leautier, 2000.
"Regulation of an Electric Power Transmission Company ,"
The Energy Journal ,
International Association for Energy Economics, vol. 21(4), pages 61-92.
Joskow, Paul L & Tirole, Jean, 1999.
"Transmission Rights and Market Power on Electric Power Networks I: Financial Rights ,"
CEPR Discussion Papers
2093, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Chao, Hung-Po & Peck, Stephen, 1996.
"A Market Mechanism for Electric Power Transmission ,"
Journal of Regulatory Economics ,
Springer, vol. 10(1), pages 25-59, July.
Robert Wilson, 2002.
"Architecture of Power Markets ,"
Econometrica ,
Econometric Society, vol. 70(4), pages 1299-1340, July.
[Downloadable!] (restricted)
Roger E. Bohn & Michael C. Caramanis & Fred C. Schweppe, 1984.
"Optimal Pricing in Electrical Networks over Space and Time ,"
RAND Journal of Economics ,
The RAND Corporation, vol. 15(3), pages 360-376, Autumn.
[Downloadable!] (restricted)
Vogelsang, Ingo, 2001.
"Price Regulation for Independent Transmission Companies ,"
Journal of Regulatory Economics ,
Springer, vol. 20(2), pages 141-65, September.
[Downloadable!] (restricted)
Hogan, William W, 1992.
"Contract Networks for Electric Power Transmission ,"
Journal of Regulatory Economics ,
Springer, vol. 4(3), pages 211-42, September.
Steven Stoft, 1999.
"Financial Transmission Rights Meet Cournot: How TCCs Curb Market Power ,"
The Energy Journal ,
International Association for Energy Economics, vol. 20(1), pages 1-24.
Joshua S. Gans & Stephen P. King, 2000.
"Options for Electricity Transmission Regulation in Australia ,"
Australian Economic Review ,
The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 33(2), pages 145-160.
[Downloadable!] (restricted)
Bushnell, James, 1999.
"Transmission Rights and Market Power ,"
The Electricity Journal ,
Elsevier, vol. 12(8), pages 77-85, October.
[Downloadable!] (restricted)
Green, Richard, 1997.
"Transmission pricing in England and Wales ,"
Utilities Policy ,
Elsevier, vol. 6(3), pages 185-193, September.
[Downloadable!] (restricted)
Bushnell, James B. & Stoft, Steven E., 1997.
"Improving private incentives for electric grid investment ,"
Resource and Energy Economics ,
Elsevier, vol. 19(1-2), pages 85-108, March.
[Downloadable!] (restricted)
Bengt Holmstrom, 1982.
"Moral Hazard in Teams ,"
Bell Journal of Economics ,
The RAND Corporation, vol. 13(2), pages 324-340, Autumn.
[Downloadable!] (restricted)
Wu, Felix, et al, 1996.
"Folk Theorems on Transmission Access: Proofs and Counterexamples ,"
Journal of Regulatory Economics ,
Springer, vol. 10(1), pages 5-23, July.
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Brunekreeft, G. & Neuhoff, K. & Newbery, D., 2004.
"Electricity transmission: an overview of the current debate ,"
Cambridge Working Papers in Economics
0463, Faculty of Economics, University of Cambridge.
[Downloadable!]
Other versions: Richard O’Neill & Emily Fisher & Benjamin Hobbs & Ross Baldick, 2008.
"Towards a complete real-time electricity market design ,"
Journal of Regulatory Economics ,
Springer, vol. 34(3), pages 220-250, December.
[Downloadable!] (restricted)
Makoto TANAKA, 2005.
"Optimal Transmission Capacity under Nodal Pricing and Incentive Regulation for Transco ,"
Discussion papers
05021, Research Institute of Economy, Trade and Industry (RIETI).
[Downloadable!]
Paul L. Joskow, 2003.
"The Difficult Transition to Competitive Electricity Markets in the U.S ,"
Working Papers
0308, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
[Downloadable!]
Other versions: Juan Pablo Montero & Salvador Valdés, 2004.
"Notas para una Regulación Eficiente de la Transmisión Eléctrica ,"
Cuadernos de Economía (Latin American Journal of Economics) ,
Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 41(123), pages 255-283.
[Downloadable!]
Other versions: Isamu Matsukawa, 2005.
"The Effects of Average Revenue Regulation on Electricity Transmission Investment and Pricing ,"
Industrial Organization
0512009, EconWPA.
[Downloadable!]
Other versions: Paul L. Joskow, 2005.
"Markets For Power In The United States - An Interim Assessment ,"
Working Papers
0512, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
[Downloadable!]
Other versions: Ingo Vogelsang, 2005.
"Electricity Transmission Pricing and Performance-Based Regulation ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
Other versions: Gert Brunekreeft & David Newbery, 2006.
"Should merchant transmission investment be subject to a must-offer provision? ,"
Journal of Regulatory Economics ,
Springer, vol. 30(3), pages 233-260, November.
[Downloadable!] (restricted)
Other versions: Vincent Rious & Yannick Perez & Philippe Dessante, 2008.
"Is combination of nodal pricing and average participation tariff the best solution to coordinate the location of power plants with lumpy transmission investments? ,"
Post-Print
hal-00323878_v1, HAL.
[Downloadable!]
Other versions: Brunekreeft, G., 2004.
"‘Regulatory Issues in Merchant Transmission Investment’ ,"
Cambridge Working Papers in Economics
0422, Faculty of Economics, University of Cambridge.
[Downloadable!]
Littlechild, S., 2004.
"Regulated and merchant interconnectors in Australia: SNI and Murraylink revisited ,"
Cambridge Working Papers in Economics
0410, Faculty of Economics, University of Cambridge.
[Downloadable!]
Ujjayant Chakravorty & Eithan Hochman & Chieko Umetsu & David Zilberman, 2004.
"Privatizing Water Distribution ,"
Emory Economics
0403, Department of Economics, Emory University (Atlanta).
[Downloadable!]
Fischbeck, Paul & Vajjhala, Shalini, 2006.
"Quantifying Siting Difficulty: A Case Study of U.S. Transmission Line Siting ,"
Discussion Papers
dp-06-03, Resources For the Future.
[Downloadable!]
Other versions: Littlechild, S.C. & Skerk, C.J., 2004.
"Regulation of transmission expansion in Argentina Part I: State ownership, reform and the Fourth Line ,"
Cambridge Working Papers in Economics
0464, Faculty of Economics, University of Cambridge.
[Downloadable!]
Andrew Kleit & James Reitzes, 2008.
"The effectiveness of FERC’s transmission policy: is transmission used efficiently and when is it scarce? ,"
Journal of Regulatory Economics ,
Springer, vol. 34(1), pages 1-26, August.
[Downloadable!] (restricted)
repec:mop:credwp:09.04.83 is not listed on IDEAS
Paul L. Joskow, 2004.
"Transmission Policy in the United States ,"
Working Papers
0417, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
[Downloadable!]
Other versions:
Joskow, P.L., 2004.
"Transmission Policy in the United States ,"
Cambridge Working Papers in Economics
0454, Faculty of Economics, University of Cambridge.
[Downloadable!] Joskow, Paul L., 2005.
"Transmission policy in the United States ,"
Utilities Policy ,
Elsevier, vol. 13(2), pages 95-115, June.
[Downloadable!] (restricted) Adrien De Hauteclocque & Vincent Rious, 2008.
"Regulatory Uncertainty and Inefficiency for the Development of Merchant Lines in Europe ,"
Post-Print
hal-00338296_v1, HAL.
[Downloadable!]
Littlechild, S.C. & Skerk, C.J., 2004.
"Regulation of transmission expansion in Argentina Part II: Developments since the Fourth Line ,"
Cambridge Working Papers in Economics
0465, Faculty of Economics, University of Cambridge.
[Downloadable!]
Brunekreeft, G., 2003.
"Market-based Investment in Electricity Transmission Networks: Controllable Flow ,"
Cambridge Working Papers in Economics
0340, Faculty of Economics, University of Cambridge.
[Downloadable!]
Access and
download statistics Did you know? You can create a compilation of all publications of a group of people, say alumni of a program, your students or memers of an association.
This page was last updated on 2009-11-11.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .