IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-00995799.html
   My bibliography  Save this paper

An Analysis of the Investment Decisions on the European Electricity Markets, over the 1945-2013 Period

Author

Listed:
  • Pascal da Costa

    () (épocc - LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Bianka Shoai Tehrani

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec, ITESE - Institut de Technico-Economie des Systèmes Energétiques - Université Paris-Saclay - CEA - Commissariat à l'énergie atomique et aux énergies alternatives)

Abstract

The aim of the article is to understand how the drivers for investment decisions in the capacities of electricity production have evolved over time, from 1945 to the present day, in the specific context of Europe facing wars and conflicts, scientific and technological progress, strong political and academic developments. We study the electric investment decisions by comparing the history of the European electricity markets with the successively dominant economic theories in this field. Therefore, we highlight differences between rational behaviors, such as described by the theories, and actual behaviors of investors and governments. Thus the liberalization of electricity markets in the European Union, more than twenty-five years ago, parts of a rationalization prescribed by new economic theories. It is clear that liberalization is being discussed. First, it remains very heterogeneous, which complicates the goal of creating a large single market for electricity in the Union. Second, we see a recent re-centralization of energy policy in the European Union (EU), which takes the form of a new regulation mainly relating to climate and renewables. However, this re-regulation is different from centralized control experienced by all European electricity markets until the mid-1980s.

Suggested Citation

  • Pascal da Costa & Bianka Shoai Tehrani, 2013. "An Analysis of the Investment Decisions on the European Electricity Markets, over the 1945-2013 Period," Working Papers hal-00995799, HAL.
  • Handle: RePEc:hal:wpaper:hal-00995799
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00995799
    as

    Download full text from publisher

    File URL: https://hal.archives-ouvertes.fr/hal-00995799/document
    Download Restriction: no

    References listed on IDEAS

    as
    1. Anne Perrot, 2002. "Les frontières entre régulation sectorielle et politique de la concurrence," Revue Française d'Économie, Programme National Persée, vol. 16(4), pages 81-112.
    2. Sharkey,William W., 1983. "The Theory of Natural Monopoly," Cambridge Books, Cambridge University Press, number 9780521271943.
    3. Severin Borenstein & James Bushnell & Christopher R. Knittel, 1999. "Market Power in Electricity Markets: Beyond Concentration Measures," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 65-88.
    4. Baumol, William J, 1977. "On the Proper Cost Tests for Natural Monopoly in a Multiproduct Industry," American Economic Review, American Economic Association, vol. 67(5), pages 809-822, December.
    5. Newbery, David M., 1997. "Privatisation and liberalisation of network utilities," European Economic Review, Elsevier, vol. 41(3-5), pages 357-383, April.
    6. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743.
    7. Stiglitz, Joseph E, 1976. "Monopoly and the Rate of Extraction of Exhaustible Resources," American Economic Review, American Economic Association, vol. 66(4), pages 655-661, September.
    8. George Eads, 1971. "A.E. Kahn: The Economics of Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(2), pages 678-682, Autumn.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Wenhui Tian & Pascal da Costa & Jean-Claude Bocquet, 2015. "Inequalities of Sectors CO 2 emissions in China, USA and France, 2010-2050," Working Papers hal-01219769, HAL.

    More about this item

    Keywords

    Renewables; European Electricity Market; Electricity Investments; European Energy Market Liberalisation; Climatic issues; Renewables.;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:hal:wpaper:hal-00995799. 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: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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 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.

    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.