Tag Archives: D. Newbery

EPRG 0503

Gert Brunekreeft, David Newbery Should Merchant Transmission Investment be Subject to a Must-offer Provision? EPRG 0503  | Non-Technical Summary | PDF Abstract: Merchant electricity transmission investment is a practically relevant example of an unregulated investment with monopoly properties. However, while leaving the investment decision to the market, the regulator may decide to prohibit capacity withholding… Read more

EPRG 0628

Richard Gilbert, David Newbery Electricity Merger Policy in the Shadow of Regulation EPRG 0628 Non-Technical Summary | PDF Also published in: “Antitrust and Regulation in the EU and US: Legal and Economic Perspectives”, ed. P. Leveque and H Shelanski, Edward Elgar 2010 Abstract: Electricity mergers pose distinctive challenges for competition policy – in market definition… Read more

EPRG 0626

Fabien Roques, David Newbery, William Nuttall Fuel mix diversification incentives in liberalised electricity markets: a Mean-Variance Portfolio Theory Approach EPRG 0626 Non-Technical Summary | PDF Also published in: Energy Economics 30 (4) 2008, 1831-1849. Available at: ScienceDirect Abstract: The risks and returns associated with different choices of electricity generation technology cannot properly be considered in… Read more

EPRG 0624

David Newbery Power Reform, Private Investment and Regional Co-operation EPRG 0624 Non-Technical Summary | PDF Also published in: Newbery, D.M. (2007) ‘Power sector reform, private investment and regional co-operation’ chapter 6 in South Asia – Regional Integration and Growth, Washington, D.C.: World Bank Report 37858-SAS, pp 107-28, McMillan Press, India Abstract: Modern infrastructure, particularly electricity,… Read more

EPRG 0619

Fabien Roques, William Nuttall, David Newbery Using Probabilistic Analysis to Value Power Generation Investments Under Uncertainty EPRG 0619 Non-Technical Summary | PDF Abstract: This paper reviews the limits of the traditional ‘levelised cost’ approach to properly take into account risks and uncertainties when valuing different power generation technologies. We introduce a probabilistic valuation model of… Read more

EPRG 0611

David Newbery The Relationship Between Regulation and Competition Policy for Network Utilities EPRG 0611 Non-Technical Summary | PDF Abstract: One of the central questions facing the regulatory and competition authorities is whether to delegate the regulation of the potentially competitive elements of the utility to specialised regulatory agencies, or whether they should be solely subject… Read more

EPRG 0722

Michael Grubb, David Newbery Pricing Carbon for Electricity Generation: National and International Dimensions EPRG 0722 Non-Technical Summary | PDF Abstract: In this paper, which forms a chapter in the forthcoming Book “Delivering a Low Carbon Electricity System: Technologies, Economics and Policy”2, Grubb and Newbery examine how carbon for electricity generation should be priced. They begin… Read more

EPRG 0720

Chris Hope, David Newbery Calculating the Social Cost of Carbon EPRG 0720 Non-Technical Summary | PDF Abstract: The paper1 discusses the determination of the social cost of carbon (SCC) using the PAGE2002 model used in the Stern Review. The SCC depends sensitively on assumptions about future economic development, the range and likelihood of economic and… Read more

EPRG 0829

Pär Holmberg, David Newbery and Daniel Ralph Supply Function Equilibria: Step functions and continuous representations EPRG 0829 Non-Technical Summary | PDF Also published in: Holmberg, P,Newbery D & Ralph, D, “Supply Function Equilibria: Step functions and continuous representations”, Journal of Economic Theory Abstract: In most wholesale electricity markets generators must submit step-function offers of supply… Read more

EPRG 0824

David Newbery Analytic Solutions for Supply Function Equilibria: Uniqueness and Stability EPRG 0824 Non-Technical Summary | PDF Also published in: Holmberg, P., D.M. Newbery and D. Ralph (2008) ‘Supply Function Equilibria: Step functions and continuous representations’, submitted to Journal of Economic Theory Abstract: Supply Function Equilibria (SFE) offer an attractive equilibrium concept for an electricity… Read more

EPRG 0821

 David Newbery Predicting market power in wholesale electricity markets EPRG 0821 Non-Technical Summary | PDF Also published in: Newbery, David (2009). “Predicting Market Power in Wholesale Electricity Markets,” RSCAS Working Papers 2009/03, European University Institute Abstract: The traditional measure of market power is the HHI, which gives implausible results given the low elasticity of demand… Read more

EP 72

David Newbery Why tax energy? Towards a more rational policy EP 72  | Non-Technical Summary | PDF Abstract: The same fuels are taxed at widely different rates in different countries while different fuels are taxed at widely different rates within and across countries. Coal, oil and gas are all used to generate electricity, but are… Read more

EP 71

Paul Twomey, Richard Green, Karsten Neuhoff, David Newbery A Review of the Monitoring of Market Power: The Possible Roles of TSOs in Monitoring for Market Power Issues in Congested Transmission Systems EP 71  | Non-Technical Summary | PDF   Abstract: The paper surveys the literature and publicly available information on market power monitoring in electricity… Read more

EP 15

David Newbery, Tanga McDaniel Auctions and trading in energy markets – an economic analysis EP 15  | Non-Technical Summary | PDF Abstract: Auctions are playing an increasingly prominent role in the planning and operation of energy markets. Comparing the New Electricity Trading Arrangements to the former electricity Pool in England and Wales requires some analysis… Read more

EP 12

David Newbery Regulatory Challenges to European Electricity Liberalistation EP 12  | Non-Technical Summary | PDF Abstract: The European Commission proposed to reform the Electricity and Gas Directives to improve access to transmission, increase cross-border capacity, and fully open the electricity and gas markets. The California electricity crisis has weakened support for liberalisation, removed the commitment… Read more

EP 07

Richard Gilbert, Karsten Neuhoff, David Newbery Allocating Transmission to Mitigate Market Power in Electricity Networks EP 07 | Non-Technical Summary | PDF Abstract: We ask what conditions transmission contracts increase or mitigate market power. We show that the allocation process of transmission rights is crucial. In an efficient arbitraged uniform price auction, generators will only… Read more

EP 01

David Newbery Issues and options for restructuring electricity supply industries EP01 | Non-Technical Summary | PDF Abstract: The electricity supply industry is highly capital-intensive, whose success depends critically upon the management of its investment. In most developing countries investment is poorly managed, poorly maintained, and often inadequate. Inadequate regulation or political control lead to low… Read more

EPRG 0815

David Newbery Under-pricing electricity and the puzzle of regulatory accounting EPRG 0815 Non-Technical Summary | PDF Abstract: State-owned electricity companies typically set prices that are too low to finance new investment when needed, and which create additional problems where private investment is sought. The paper asks to what extent this can be attributed to historic… Read more

EPRG 1023

David M Newbery Oil Shortages, Climate Change and Collective Action EPRG 1023 | Non-Technical Summary | PDF | Appendix Also published in: Philosophical Transactions of Royal Society Publishing A, 13 May 2011 vol. 369 (1942), pp1748-1761 – Text Abstract: Concerns over future oil scarcity might not be so worrying but for the high carbon content of… Read more

EPRG 1011

David M. Newbery A Nuclear Future? UK Government Policy and the Role of the Market EPRG 1011 | Non-Technical Summary | PDF Also published in: Economic Affairs 30 (2) 2010, 21-27. Available at Wiley InterScience Abstract: Meeting carbon targets requires decarbonising electricity. The least cost strategy involves nuclear power. In a liberalised electricity market, the… Read more

EPRG 1007

Pär Holmberg and David Newbery The supply function equilibrium and its policy implications for wholesale electricity auctions EPRG 1007  | Non-Technical Summary | PDF Also published in: Holmberg, P. and Newbery, D. M. (2010), “The Supply Function Equilibrium and its Policy Implications for Wholesale Electricity Auctions”, Utilities Policy 18(4) Abstract: The supply function equilibrium provides… Read more

EPRG 1126

David Newbery Reforming Competitive Electricity Markets to Meet Environmental Targets EPRG 1126  | Non-Technical Summary | PDF Abstract: The UK and other EU countries are concerned to deliver secure, sustainable and affordable electricity, to meet challenging targets for decarbonisation and renewable energy. The UK Government has consulted and concluded that the present electricity market arrangements… Read more

EPRG 1120

David Newbery Contracting for wind generation EPRG1120  | Non-Technical Summary | PDF Also published in: Economics of Energy & Environmental Policy , 1(2) EPRG 1120 Abstract: The UK Government proposes offering long-term Feed-in-Tariffs (FiTs) to low-carbon generation to reduce risk and encourage new entrants. Their preference is for a Contract-for-Difference (CfD) or a premium FiT… Read more

David Newbery

David Newbery, C.B.E., F.B.A. Director of EPRG, Emeritus Professor of Economics, Faculty of Economics, University of Cambridge Sc.D. (Cantab.) Ph.D. (Cantab.) M.A. (Cantab.) Email: dmgn@cam.ac.uk Tel: +44 (0)1223 335248 Address: Faculty of Economics, Sidgwick Ave, Cambridge Research Projects: TSEC 1, CESSA Research Interests: Liberalization, privatisation, competition and regulation in network industries, particularly electricity; Transmission access… Read more