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Do regulatory mechanisms promote competition and mitigate market power? Evidence from Spanish electricity market

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  • Moutinho, Victor
  • Moreira, António C.
  • Mota, Jorge

Abstract

This paper estimates the relationships between bidding quantities, marginal cost and market power measures in the Spanish wholesale electricity market for two different regulatory periods: 2002–2005 and 2006–2007. Using panel econometric techniques we find differences in the impacts on bidding strategies for both periods. Hence, the marginal cost and the market power measures affect bid and net quantities. The market power measures also suggest that the coefficient is consistently positive and highly significant for both periods.

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  • Moutinho, Victor & Moreira, António C. & Mota, Jorge, 2014. "Do regulatory mechanisms promote competition and mitigate market power? Evidence from Spanish electricity market," Energy Policy, Elsevier, vol. 68(C), pages 403-412.
    • Handle: RePEc:eee:enepol:v:68:y:2014:i:c:p:403-412
    DOI: 10.1016/j.enpol.2014.01.021
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    5. Victor F. Moutinho & António C. Moreira & João Paulo C. Bento, 2018. "Strategic decisions on bilateral bidding behavior: evidence from a wholesale electricity market," Empirical Economics, Springer, vol. 54(3), pages 1353-1387, May.
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