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Neither Lucky Nor Good - The Case of Electricity Deregulation in California

  • Jason P. Martinek

    (Federal Reserve Bank of Kansas City, USA)

  • Michael J. Orlando

    (Federal Reserve Bank of Kansas City, USA)

We present an integrated summary of the various factors that contributed to shortages of electrical power in California in 2000. Several necessary conditions for the crisis are identified. We conclude that a sufficient remedy may be defined by policies that mitigate the limited incentives to invest in transmission capacity.

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File URL: http://www.esr.ie/Vol33_1Orlando.pdf
File Function: First version, 2002
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Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 33 (2002)
Issue (Month): 1 ()
Pages: 75-82

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Handle: RePEc:eso:journl:v:33:y:2002:i:1:p:75-82
Contact details of provider: Web page: http://www.esr.ie

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  1. Paul Joskow & Edward Kahn, 2001. "A Quantitative Analysis of Pricing Behavior in California's Wholesale Electricity Market During Summer 2000," NBER Working Papers 8157, National Bureau of Economic Research, Inc.
  2. Severin Borenstein & James Bushnell & Frank Wolak, 2000. "Diagnosing Market Power in California's Restructured Wholesale Electricity Market," NBER Working Papers 7868, National Bureau of Economic Research, Inc.
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