Seamless Electricity Trade between Canada and US Northeast
We analyse how the wholesale electricity market deregulation could modify exchanges between three Canadian regions (Ontario, Quebec and New Brunswick) and two U.S. regions (New York and New England), which were already trading electricity before the regulatory change took place in 1997. We find that the pre-1997 exchanges already made possible fuel cost savings of $397.2 million per year while deregulation adds annual savings of $358.7 million. Canadian regions are the main beneficiaries under the assumption that exports are priced at the marginal costs of the importing regions. Imports from the Canadian regions, although significant, are not large enough to lower the marginal costs of the U.S. regions. Hence electricity deregulation across the border should not significantly decrease prices in the U.S. regions although the latter are becoming more dependant upon imports from Canada. Greenhouse gas emissions increase by 4.3 Mt CO2 eq. in the wake of the open wholesale electricity market because of the low cost of coal, particularly in Ontario. Environmental concerns and the limited availability of additional hydroelectric power in Canada could change the trade patterns as electricity demand continue to grow.
|Date of creation:||2003|
|Contact details of provider:|| Postal: Bureau 2245, Pavillon J.-A.-DeSève, Québec (Québec) G1K 7P4|
Phone: (418) 656-2096
Fax: (418) 656-7412
Web page: http://www.green.ecn.ulaval.ca
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:lvl:lagrcr:0308. 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: (Manuel Paradis)
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.