IDEAS home Printed from
   My bibliography  Save this paper

Theoretical Perspectives on three Issues of Electricity Economics


  • Yves Balasko


Electricity economics has stimulated the development of important branches of economic theory like the theories of peak-load and second-best pricing. Its problems are rarely simple and their difficulty is often aggravated by the non-storable nature of electricity. First intuitions can even be mis-leading. The three issues of electricity economics considered in this paper (two-part electricity pricing, the equilibria of electricity markets and their number, the endogenous determination of the extent of power outages) belong to this category. Proper answers require either the recourse to lesser known properties of the general equilibrium model (about the number of equilibria for example) or new approaches (the two-part pricing question) and models (the endogenous determination of the volume of power outages). Like other theoretical developments that have stemmed from electricity issues, these developments have a range of applications that extend beyond electricity economics.

Suggested Citation

  • Yves Balasko, "undated". "Theoretical Perspectives on three Issues of Electricity Economics," GSIA Working Papers 2001-E18, Carnegie Mellon University, Tepper School of Business.
  • Handle: RePEc:cmu:gsiawp:-998384135

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Arellano, M. Soledad & Serra, Pablo, 2007. "Spatial peak-load pricing," Energy Economics, Elsevier, vol. 29(2), pages 228-239, March.
    2. José Pablo Arellano, 2004. "Principios para Tarificar la Transmisión Eléctrica," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 41(123), pages 231-253.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:cmu:gsiawp:-998384135. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Steve Spear). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.