Imperfect Markets Versus Imperfect Regulation In Us Electricity Generation
Download Imperfect Markets Versus Imperfect Regulation In Us Electricity Generation full books in PDF, epub, and Kindle. Read online free Imperfect Markets Versus Imperfect Regulation In Us Electricity Generation ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Imperfect Markets Versus Imperfect Regulation in U.S. Electricity Generation
Author | : Steve Cicala |
Publisher | : |
Total Pages | : 59 |
Release | : 2017 |
Genre | : Electric power production |
ISBN | : |
Download Imperfect Markets Versus Imperfect Regulation in U.S. Electricity Generation Book in PDF, Epub and Kindle
This paper measures changes in electricity generation costs caused by the introduction of market mechanisms to determine output decisions in service areas that were previously using command-and-control-type operations. I use the staggered transition to markets from 1999-2012 to evaluate the causal impact of liberalization using a nationwide panel of hourly data on electricity demand and unit-level costs, capacities, and output. To address the potentially confounding effects of unrelated fuel price changes, I use machine learning methods to predict the allocation of output to generating units in the absence of markets for counterfactual production patterns. I find that markets reduce production costs by $3B per year by reallocating output among existing power plants: Gains from trade across service areas increase by 20% based on a 10% increase in traded electricity, and costs from using uneconomical units fall 20% from a 10% reduction in their operation.