Advanced Search
MyIDEAS: Login

Uncertainty over Demand and the Market for Energy

Contents:

Author Info

  • Federico Boffa

Abstract

The paper examines the three following issues connected to the energy market: 1.Uncertainty ex ante over demand, and the consequent choice of risking to either overproduce, or to underserve the market. 2.Capacity constraints for the energy firms, with the consequence that production is shared by a number of plants. 3.High fixed costs of setting up the distribution procedure, which make it likely to have regional monopolies in the retail market. The questions that the paper tries to answer are the following: 1) Will the energy firms be willing to connect in order to avoid blackouts? The answer in the paper is yes, but we did not consider the fixed cost of establishing the connection, very important indeed 2) What is the optimal structure of the market, i.e., what would the outcome of an unregulated process be? Would this outcome avoid blackouts? I believe the questions are important, as the energy market is subject to a lot of regulations that ASSUME to be inspired to a competitive outcome. But the question is: are we sure the competitive outcome regulators inspire to is the true competitive outcome? And more, are we sure that the true competitive outcome wouldn't be welfare enhancing also for consumers with respect to the regulation outcome?

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: http://128.118.178.162/eps/io/papers/0402/0402002.pdf
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series Industrial Organization with number 0402002.

as in new window
Length: 20 pages
Date of creation: 03 Feb 2004
Date of revision:
Handle: RePEc:wpa:wuwpio:0402002

Note: Type of Document - pdf; prepared on win XP; pages: 20. Preliminary and incomplete
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords:

Find related papers by JEL classification:

References

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

Citations

Lists

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

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpio:0402002. 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: (EconWPA).

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.