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Getting on the Map: The Political Economy of State-Level Electricity Restructuring

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Author Info
Palmer, Karen () (Resources for the Future)
Ando, Amy

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Abstract

Retail competition in electricity markets is expected to lead to more efficient electricity supply, lower electricity prices, more innovation by suppliers and a greater variety of electric power service packages. However, only a handful of states have currently gone so far as to pass legislation and/or make regulatory decisions to establish retail wheeling. This paper analyzes a variety of factors that may influence the rate at which legislators and regulators move towards establishing retail competition. In general, we find that where one interest group dominates others in the struggle for influence over the decision makers, the net effect seems to push a state forward more quickly when retail wheeling is expected to yield large efficiency gains.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-98-19-rev.

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Date of creation: 01 May 1998
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Handle: RePEc:rff:dpaper:dp-98-19-rev

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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.:
  1. Kalt, Joseph P & Zupan, Mark A, 1984. "Capture and Ideology in the Economic Theory of Politics," American Economic Review, American Economic Association, vol. 74(3), pages 279-300, June. [Downloadable!] (restricted)
  2. Palmer, Karen & Burtraw, Dallas, 1997. "Electricity restructuring and regional air pollution," Resource and Energy Economics, Elsevier, vol. 19(1-2), pages 139-174, March. [Downloadable!] (restricted)
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  3. Stavins, Robert & Keohane, Nathaniel & Revesz, Richard, 1997. "The Positive Political Economy of Instrument Choice in Environmental Policy," Discussion Papers dp-97-25, Resources For the Future. [Downloadable!]
  4. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-79, June. [Downloadable!] (restricted)
  5. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring. [Downloadable!] (restricted)
  6. Bresnahan, Timothy F. & Reiss, Peter C., 1991. "Empirical models of discrete games," Journal of Econometrics, Elsevier, vol. 48(1-2), pages 57-81. [Downloadable!] (restricted)
  7. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August. [Downloadable!] (restricted)
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(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.)

  1. Palmer, Karen & Brennan, Timothy & Martinez, Salvador, 2001. "Implementing Electricity Restructuring: Policies, Potholes, and Prospects," Discussion Papers dp-01-62-, Resources For the Future. [Downloadable!]
  2. Burtraw, Dallas, 1998. "Cost Savings, Market Performance and Economic Benefits of the U.S. Acid Rain Program," Discussion Papers dp-98-28-rev, Resources For the Future. [Downloadable!]
  3. Paroma Sanyal, 2005. "Powering a Green Progress: The Effect of Electricity Deregulation on Environmental Research," Industrial Organization 0504015, EconWPA. [Downloadable!]
  4. Burtraw, Dallas & Palmer, Karen, 2005. "The Environmental Impacts of Electricity Restructuring: Looking Back and Looking Forward," Discussion Papers dp-05-07, Resources For the Future. [Downloadable!]
  5. Donald N. Dewees, 2006. "Electricity Restructuring and Regulation in the Provinces: Ontario and Beyond," Working Papers tecipa-205, University of Toronto, Department of Economics. [Downloadable!]
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