Theoretical Perspectives on three Issues of Electricity Economics
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.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: Tepper School of Business, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA 15213-3890|
Web page: http://www.tepper.cmu.edu/
|Order Information:||Web: http://student-3k.tepper.cmu.edu/gsiadoc/GSIA_WP.asp|
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)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.