L'électricité est-elle un bien public ?
Wholesale electricity markets are increasingly driven by the rules of competition while recent outages in different regions of the world suggest that security of supply is a public good. The objective of this paper is to show that security of supply and more generally, electricity supply has both public and private characteristics. Whilst the public good characteristic explains why some producers may prefer to free ride on others’ investments to maintain reliability, the private good aspect of reliability shows that agents may have a variety of preferences for reliability. Then by relying on the concept of Pareto-relevant externality, the paper explores the private aspect of reliability for the prospect of creating and selling reliability as a differentiated product complementary to bulk power markets. Finally, policy recommendations are derived that aim to enhance information content in the network. JEL codes: H41, L94, L98.
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.:
- Abbott, Malcolm, 2001. "Is the Security of Electricity Supply a Public Good?," The Electricity Journal, Elsevier, vol. 14(7), pages 31-33.
- Peter C. Reiss & Matthew W. White, 2005. "Household Electricity Demand, Revisited," Review of Economic Studies, Oxford University Press, vol. 72(3), pages 853-883.
- Paul L. Joskow, 1997. "Restructuring, Competition and Regulatory Reform in the U.S. Electricity Sector," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 119-138, Summer.
- Chao, Hung-Po & Peck, Stephen C, 1998. "Reliability Management in Competitive Electricity Markets," Journal of Regulatory Economics, Springer, vol. 14(2), pages 189-200, September.
- Musgrave, Richard A, 1969. "Cost-Benefit Analysis and the Theory of Public Finance," Journal of Economic Literature, American Economic Association, vol. 7(3), pages 797-806, September.
- Chao, Hung-po & Wilson, Robert, 1987. "Priority Service: Pricing, Investment, and Market Organization," American Economic Review, American Economic Association, vol. 77(5), pages 899-916, December.
When requesting a correction, please mention this item's handle: RePEc:cai:reofsp:reof_101_0399. 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: (Jean-Baptiste de Vathaire)
If references are entirely missing, you can add them using this form.