IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v36y2015i2p1-28.html
   My bibliography  Save this article

Competition in the Dutch Electricity Market: An Empirical Analysis over 2006-2011

Author

Listed:
  • Machiel Mulder

Abstract

We assess the development of competition in the Dutch electricity wholesale market over 2006-2011. In this period domestic generation capacity, both centralized and decentralized, as well as the cross-border transmission capacity increased. Using hourly plant-level data of centralized units and engineering-costs estimates, we estimate the weighted average Lerner index. During super peak hours, the annual average value of this index decreased from 0.23 in 2006 to 0.03 in 2011, indicating more competition. We find indications that the increase in competition can be attributed to the extension of cross-border connections, a higher price elasticity of net demand and more Bertrand-like competition. Enhancing the role of decentralized generation as well as fostering integration of markets seem to be effective measures to promote competition.

Suggested Citation

  • Machiel Mulder, 2015. "Competition in the Dutch Electricity Market: An Empirical Analysis over 2006-2011," The Energy Journal, , vol. 36(2), pages 1-28, April.
    • Handle: RePEc:sae:enejou:v:36:y:2015:i:2:p:1-28
    DOI: 10.5547/01956574.36.2.1
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.36.2.1
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.36.2.1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:reg:rpubli:73 is not listed on IDEAS
    2. Willems, Bert & Rumiantseva, Ina & Weigt, Hannes, 2009. "Cournot versus Supply Functions: What does the data tell us?," Energy Economics, Elsevier, vol. 31(1), pages 38-47, January.
    3. Grant R. McDermott & Øivind A. Nilse, 2014. "Electricity Prices, River Temperatures, and Cooling Water Scarcity," Land Economics, University of Wisconsin Press, vol. 90(1), pages 131-148.
    4. OGGIONI, Giorgia & SMEERS, Yves, 2013. "Market failures of market coupling and counter-trading in Europe: an illustrative model based discussion," LIDAM Reprints CORE 2553, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. repec:dgr:rugsom:13003-eef is not listed on IDEAS
    6. Georg Gebhardt and Felix Hoffler, 2013. "How Competitive is Cross-border Trade of Electricity? Theory and Evidence from European Electricity Markets," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    7. Richard Green, 2007. "EU Regulation and Competition Policy among the Energy Utilities," Discussion Papers 08-01, Department of Economics, University of Birmingham.
    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. Machiel Mulder, 2015. "Competition in the Dutch Electricity Market: An Empirical Analysis over 2006-2011," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    2. Grossi, Luigi & Heim, Sven & Waterson, Michael, 2014. "A vision of the European energy future? The impact of the German response to the Fukushima earthquake," The Warwick Economics Research Paper Series (TWERPS) 1047, University of Warwick, Department of Economics.
    3. Alexander Zerrahn & Daniel Huppmann, 2017. "Network Expansion to Mitigate Market Power," Networks and Spatial Economics, Springer, vol. 17(2), pages 611-644, June.
    4. Alexander Zerrahn & Daniel Huppmann, 2014. "Network Expansion to Mitigate Market Power: How Increased Integration Fosters Welfare," Discussion Papers of DIW Berlin 1380, DIW Berlin, German Institute for Economic Research.
    5. Grossi, Luigi & Heim, Sven & Waterson, Michael, 2017. "The impact of the German response to the Fukushima earthquake," Energy Economics, Elsevier, vol. 66(C), pages 450-465.
    6. repec:hal:wpaper:halshs-00816355 is not listed on IDEAS
    7. Bowei Guo & Giorgio Castagneto Gissey, 2019. "Cost Pass-through in the British Wholesale Electricity Market: Implications of Brexit and the ETS reform," Working Papers EPRG1937, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    8. Holmberg, Pär & Willems, Bert, 2015. "Relaxing competition through speculation: Committing to a negative supply slope," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 236-266.
    9. Bonenti, Francesca & Oggioni, Giorgia & Allevi, Elisabetta & Marangoni, Giacomo, 2013. "Evaluating the EU ETS impacts on profits, investments and prices of the Italian electricity market," Energy Policy, Elsevier, vol. 59(C), pages 242-256.
    10. Felten, Björn & Osinski, Paul & Felling, Tim & Weber, Christoph, 2021. "The flow-based market coupling domain - Why we can't get it right," Utilities Policy, Elsevier, vol. 70(C).
    11. Bjørndal, Endre & Bjørndal, Mette & Rud, Linda & Alangi, Somayeh Rahimi, 2017. "Market Power Under Nodal and Zonal Congestion Management Techniques," Discussion Papers 2017/14, Norwegian School of Economics, Department of Business and Management Science.
    12. Martin Weibelzahl & Alexandra Märtz, 2020. "Optimal storage and transmission investments in a bilevel electricity market model," Annals of Operations Research, Springer, vol. 287(2), pages 911-940, April.
    13. Matthias Janssen & Magnus Wobben, "undated". "Electricity Pricing and Market Power - Evidence from Germany," Working Papers 200121, Institute of Spatial and Housing Economics, Munster Universitary.
    14. David P. Brown & Andrew Eckert, 2018. "Analyzing the Impact of Electricity Market Structure Changes and Mergers: The Importance of Forward Commitments," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(1), pages 101-137, February.
    15. Trillas, Francesc, 2010. "Electricity and telecoms reforms in the EU: Insights from the economics of federalism," Utilities Policy, Elsevier, vol. 18(2), pages 66-76, June.
    16. van Koten, Silvester & Ortmann, Andreas, 2013. "Structural versus behavioral remedies in the deregulation of electricity markets: An experimental investigation motivated by policy concerns," European Economic Review, Elsevier, vol. 64(C), pages 256-265.
    17. Bergler, Julian & Heim, Sven & Hüschelrath, Kai, 2017. "Strategic capacity withholding through failures in the German-Austrian electricity market," Energy Policy, Elsevier, vol. 102(C), pages 210-221.
    18. Michele Fioretti & Jorge Tamayo, 2021. "Saving for a Dry Day: Coal, Dams, and the Energy Transition," Working Papers hal-03389152, HAL.
    19. Juha Teirilä and Robert A. Ritz, 2019. "Strategic Behaviour in a Capacity Market? The New Irish Electricity Market Design," The Energy Journal, International Association for Energy Economics, vol. 0(The New E).
    20. Friedrich Kunz & Alexander Zerrahn, 2013. "The Benefit of Coordinating Congestion Management in Germany," Discussion Papers of DIW Berlin 1298, DIW Berlin, German Institute for Economic Research.
    21. Mulder, Machiel & Schoonbeek, Lambert, 2013. "Decomposing changes in competition in the Dutch electricity market through the residual supply index," Energy Economics, Elsevier, vol. 39(C), pages 100-107.

    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:sae:enejou:v:36:y:2015:i:2:p:1-28. 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: SAGE Publications (email available below). General contact details of provider: .

    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.