IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v30y2008i4p1321-1333.html
   My bibliography  Save this article

Investment decisions in electricity transmission in Argentina: The role of earmarked funds and gas pipeline expansions

Author

Listed:
  • Chisari, Omar O.
  • Romero, Carlos A.

Abstract

This paper reexamines the problem of collective decisions of investment in electricity transmission in Argentina in the nineties. We summarize our previous results on the existence of a fundamental flaw in the evaluation of willingness-to-pay and on the need to consider the votes of groups of generators integrated through common ownership rather than individual generators. We discuss the workings of the SALEX account for financing expansions and confirm that the imperfect identification of voters could affect the evaluation of expansion projects. We also study an integrated model that considers two alternatives to electricity transmission: gas transmission and the location of generators; we show that location in the demand node voting against expansions in electricity transmission could be justified to maximize profits.

Suggested Citation

  • Chisari, Omar O. & Romero, Carlos A., 2008. "Investment decisions in electricity transmission in Argentina: The role of earmarked funds and gas pipeline expansions," Energy Economics, Elsevier, vol. 30(4), pages 1321-1333, July.
    • Handle: RePEc:eee:eneeco:v:30:y:2008:i:4:p:1321-1333
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140-9883(08)00015-7
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chisari, Omar O. & Dal-Bo, Pedro & Romero, Carlos A., 2001. "High-tension electricity network expansions in Argentina: decision mechanisms and willingness-to-pay revelation," Energy Economics, Elsevier, vol. 23(6), pages 697-715, November.
    2. Paul Joskow & Jean Tirole, 2005. "Merchant Transmission Investment," Journal of Industrial Economics, Wiley Blackwell, vol. 53(2), pages 233-264, June.
    3. DE WOLF, Daniel & SMEERS, Yves, 2000. "The gas transmission problem solved by an extension of the simplex algorithm," LIDAM Reprints CORE 1489, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Gruner, Hans Peter & Kiel, Alexandra, 2004. "Collective decisions with interdependent valuations," European Economic Review, Elsevier, vol. 48(5), pages 1147-1168, October.
    5. Stephen C. Littlechild & Carlos J. Skerk, 2004. "Regulation of transmission expansion in Argentina Part I: State ownership, reform and the Fourth Line," Working Papers EP61, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    6. Herbert Scarf, 1994. "The Allocation of Resources in the Presence of Indivisibilities," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 111-128, Fall.
    7. Anderson, Kent P. & McCarthy, Amy, 1999. "Transmission pricing and expansion methodology: lessons from Argentina," Utilities Policy, Elsevier, vol. 8(4), pages 199-211, December.
    8. B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
    9. Stephen C. Stephen C. & Carlos J. Skerk, 2004. "Regulation of Transmission Expansion in Argentina: Part II – Developments Since the Fourth Line," Working Papers EP62, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    10. Daniel De Wolf & Yves Smeers, 2000. "The Gas Transmission Problem Solved by an Extension of the Simplex Algorithm," Management Science, INFORMS, vol. 46(11), pages 1454-1465, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Littlechild, Stephen C. & Skerk, Carlos J., 2008. "Transmission expansion in Argentina 2: The Fourth Line revisited," Energy Economics, Elsevier, vol. 30(4), pages 1385-1419, July.
    2. Abdala, Manuel A., 2008. "Governance of competitive transmission investment in weak institutional systems," Energy Economics, Elsevier, vol. 30(4), pages 1306-1320, July.
    3. Littlechild, Stephen C. & Skerk, Carlos J., 2008. "Transmission expansion in Argentina 4: A review of performance," Energy Economics, Elsevier, vol. 30(4), pages 1462-1490, July.
    4. Stephen C. Littlechild & Carlos J. Skerk, 2004. "Regulation of transmission expansion in Argentina Part I: State ownership, reform and the Fourth Line," Working Papers EP61, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    5. Rosellon, Juan, 2007. "An incentive mechanism for electricity transmission expansion in Mexico," Energy Policy, Elsevier, vol. 35(5), pages 3003-3014, May.
    6. Littlechild, Stephen C. & Ponzano, Eduardo A., 2008. "Transmission expansion in Argentina 5: The regional electricity forum of Buenos Aires province," Energy Economics, Elsevier, vol. 30(4), pages 1491-1526, July.
    7. Pollitt, Michael, 2008. "Electricity reform in Argentina: Lessons for developing countries," Energy Economics, Elsevier, vol. 30(4), pages 1536-1567, July.
    8. Littlechild, Stephen C. & Skerk, Carlos J., 2008. "Transmission expansion in Argentina 1: The origins of policy," Energy Economics, Elsevier, vol. 30(4), pages 1367-1384, July.
    9. Stephen C. Stephen C. & Carlos J. Skerk, 2004. "Regulation of Transmission Expansion in Argentina: Part II – Developments Since the Fourth Line," Working Papers EP62, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    10. Lars Schewe & Martin Schmidt & Johannes Thürauf, 2020. "Computing technical capacities in the European entry-exit gas market is NP-hard," Annals of Operations Research, Springer, vol. 295(1), pages 337-362, December.
    11. repec:cty:dpaper:10.1080/0013791x.2011.573615 is not listed on IDEAS
    12. Beyza, Jesus & Ruiz-Paredes, Hector F. & Garcia-Paricio, Eduardo & Yusta, Jose M., 2020. "Assessing the criticality of interdependent power and gas systems using complex networks and load flow techniques," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 540(C).
    13. Thomas-Olivier Léautier & Véronique Thelen, 2009. "Optimal expansion of the power transmission grid: why not?," Journal of Regulatory Economics, Springer, vol. 36(2), pages 127-153, October.
    14. Daniel de Wolf, 2017. "Mathematical Properties of Formulations of the Gas Transmission Problem," Post-Print halshs-02396747, HAL.
    15. Liang, Yingzong & Hui, Chi Wai, 2018. "Convexification for natural gas transmission networks optimization," Energy, Elsevier, vol. 158(C), pages 1001-1016.
    16. Bao, Minglei & Hui, Hengyu & Ding, Yi & Sun, Xiaocong & Zheng, Chenghang & Gao, Xiang, 2023. "An efficient framework for exploiting operational flexibility of load energy hubs in risk management of integrated electricity-gas systems," Applied Energy, Elsevier, vol. 338(C).
    17. Mengying Xue & Tianhu Deng & Zuo‐Jun Max Shen, 2019. "Optimizing natural gas pipeline transmission with nonuniform elevation: A new initialization approach," Naval Research Logistics (NRL), John Wiley & Sons, vol. 66(7), pages 547-564, October.
    18. Paul Joskow & Jean Tirole, 2005. "Merchant Transmission Investment," Journal of Industrial Economics, Wiley Blackwell, vol. 53(2), pages 233-264, June.
    19. Xie, Shiwei & Hu, Zhijian & Wang, Jueying & Chen, Yuwei, 2020. "The optimal planning of smart multi-energy systems incorporating transportation, natural gas and active distribution networks," Applied Energy, Elsevier, vol. 269(C).
    20. Conrado Borraz-Sánchez & Dag Haugland, 2013. "Optimization methods for pipeline transportation of natural gas with variable specific gravity and compressibility," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 21(3), pages 524-541, October.
    21. Zhou, Li & Liao, Zuwei & Wang, Jingdai & Jiang, Binbo & Yang, Yongrong & Du, Wenli, 2015. "Energy configuration and operation optimization of refinery fuel gas networks," Applied Energy, Elsevier, vol. 139(C), pages 365-375.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:30:y:2008:i:4:p:1321-1333. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.