Incentive based energy market design
Current energy market designs and pricing schemes fail to give investors the appropriate market signals. In particular, energy prices are not high enough to attract investors to build new or maintain existing power capacity. In this paper we propose a method to compute second-best Pareto optimal equilibrium prices for any market exhibiting non-convexities and, based on this result, an energy market design able to restore the correct energy price signals for supply investors.
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- Paul Joskow & Jean Tirole, 2007.
"Reliability and competitive electricity markets,"
RAND Journal of Economics,
RAND Corporation, vol. 38(1), pages 60-84, 03.
- Paul L. Joskow & Jean Tirole, 2004. "Reliability and Competitive Electricity Markets," NBER Working Papers 10472, National Bureau of Economic Research, Inc.
- Joskow, Paul L & Tirole, Jean, 2007. "Reliability and Competitive Electricity Markets," CEPR Discussion Papers 6121, C.E.P.R. Discussion Papers.
- Joskow, Paul & Tirole, Jean, 2004. "Reliability and Competitive Electricity Markets," IDEI Working Papers 310, Institut d'Économie Industrielle (IDEI), Toulouse.
- Paul Joskow & Jean Tirole, 2004. "Reliability and Competitive Electricity Markets," Working Papers 0408, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Joskow, P. & Tirole, J., 2004. "Reliability and Competitive Electricity Markets," Cambridge Working Papers in Economics 0450, Faculty of Economics, University of Cambridge.
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- J. R. Hicks, 1954. "The Process Of Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 6(1), pages 41-41.
- H. F. Lydall, 1955. "Conditions Of New Entry And The Theory Of Price," Oxford Economic Papers, Oxford University Press, vol. 0(3), pages 300-311.
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- M. E. Paul, 1954. "Notes On Excess Capacity," Oxford Economic Papers, Oxford University Press, vol. 6(1), pages 33-40. Full references (including those not matched with items on IDEAS)
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