A Critique of Wolak’s Evaluation of the NZ Electricity Market: Introduction and Overview
This paper is the first in a symposium of papers that examine the 2009 report by Frank Wolak into the New Zealand electricity market. The Wolak report concluded that there had been a cumulative total of $4.3b (NZD) of overcharging in the New Zealand wholesale market over a period of seven years. In this paper, we introduce the Wolak findings in the context of the salient features of the New Zealand market, and explain that this headline figure is highly sensitive to some (quite unrealistic) assumptions about the structure of this market. The papers that follow this introduction (Hogan and Jackson, 2011, and Evans and Guthrie, 2011) examine Wolak’s methodology and its empirical application.
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- James B. Bushnell & Erin T. Mansur & Celeste Saravia, 2007.
"Vertical Arrangements, Market Structure, and Competition An Analysis of Restructured U.S. Electricity Markets,"
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13507, National Bureau of Economic Research, Inc.
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- Bushnell, James & Mansur, Erin T. & Saravia, Celeste, 2008. "Vertical Arrangements, Market Structure and Competition: An Analysis of Restructured U.S. Electricity Markets," Staff General Research Papers 13130, Iowa State University, Department of Economics.
- Lewis Evans & Graeme Guthrie & Steen Videbeck, 2008.
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Contemporary Economic Policy,
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- Lewis Evans & Greame Guthrie & Andrea Lu, 2010.
"A New Zealand Electricity Market Model: Assessment of the Effect of Climate Change on Electricity Production and Consumption,"
10_09, Motu Economic and Public Policy Research.
- Evans, Lewis & lu, Yinjia (Andrea) & Guthrie, Graeme, 2010. "A New Zealand Electricity Market Model: Assessment of the effect of climate change on electricity production and consumption," Working Paper Series 4058, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
- Lewis Evans & Graeme Guthrie, 2009. "How Options Provided by Storage Affect Electricity Prices," Southern Economic Journal, Southern Economic Association, vol. 75(3), pages 681–702, January.
- Baumol, William J & Bradford, David F, 1970. "Optimal Departures from Marginal Cost Pricing," American Economic Review, American Economic Association, vol. 60(3), pages 265-83, June.
- Oliver Browne & Stephen Poletti & David Young, 2012. "Simulating market power in the New Zealand electricity market," New Zealand Economic Papers, Taylor & Francis Journals, vol. 46(1), pages 35-50, December.
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