Marija Ilic, Eric Hsieh, Prasad Remanan Transmission Pricing of Distributed Multilateral Energy Transactions to Ensure System Security and Guide Economic Dispatch EP 18 | Non-Technical Summary | PDF Abstract: In this paper we provide a simulations-based demonstration of a hybrid electricity market that combines the distributed competitive advantages of decentralized markets with the system security… Continue Reading
Karsten Neuhoff Integrating Transmission and Energy Markets Mitigates Market Power EP 17 | Non-Technical Summary | PDF Continue Reading
Raffaella Mota The Restructuring and Privatisation of Electricity Distribution and Supply Business in Brazil: A Social Cost-Benefit Analysis EP 16 | Non-Technical Summary | PDF Continue Reading
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… Continue Reading
Preetum Domah Technical Efficiency in Electricity Generation – The Impact of Smallness and Isolation of Island Economies EP 14 | Non-Technical Summary | PDF Abstract: This paper conducts a comparative technical efficiency analysis of electricity generators in 16 small island economies using panel data, and two methodologies: data envelopment analysis (DEA) and stochastic frontier analysis… Continue Reading
A Denny Ellerman, Juan-Pablo Montero The Temporal Efficiency of SO2 Emissions Trading EP 13 | Non-Technical Summary | PDF Abstract: This paper provides an empirical evaluation of the temporal efficiency of the US Acid Rain Program, which implemented a nationwide market for trading and banking sulphur dioxide (SO2) emission allowances. We first develop a model… Continue Reading
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… Continue Reading
Preetum Domah, Michael G Pollitt, Jon Stern Modelling the costs of electricity regulation: Evidence of human resource constraints in developing countries EP 11 | Non-Technical Summary | PDF Abstract: Successful electricity industry reform depends on the presence of an appropriately staffed regulatory agency for the liberalised sector. However developing countries can have resource constraints that… Continue Reading
Gert Brunekreeft Regulatory Threat in Vertically Related Markets: The Case of German Electricity EP 10 | Non-Technical Summary | PDF Abstract: This paper applies the concept of regulatory threat to analyse the electricity supply industry in Germany, where in contrast to other European member states, there is no ex-ante regulation of network access charges. Instead,… Continue Reading
Stephen Littlechild Competition in Retail Electricity Supply EP 09 | Non-Technical Summary | PDF Abstract: This paper presents an analysis and defence of competition in retail electricity supply. It includes some account of its development in the UK over the last dozen years, to the point where all retail price controls have now been removed.… Continue Reading
Tooraj Jamasb Reform and Regulation of the Electricity Sectors in Developing Countries EP 08 | Non-Technical Summary | PDF Abstract: The 1990s witnessed a worldwide trend toward electricity sector reforms in developed and developing economies. These reforms have generally been based on private participation, regulatory reform, and competition in the sector. This paper reviews and… Continue Reading
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… Continue Reading
Tanga McDaniel, Karsten Neuhoff Auctions to gas transmission access: The British experience EP 06 | Non-Technical Summary | PDF Abstract: When access to monopoly owned networks is constrained auctioning access rights can increase the efficiency of allocations relative to negotiation and grandfathering when there is sufficient competition among network users. Historically, access rights to entry… Continue Reading
Karsten Neuhoff Optimal congestion treatment for bilateral electricity trading EP 05 | Non-Technical Summary | PDF Abstract: How to treat transmission constraints in electricity markets that are not based on a pool but on bilateral trading? Three approaches are currently discussed: First, the system operator resolves constraints and socialises costs; second, physical transmission contracts; third,… Continue Reading
Tanga McDaniel, Karsten Neuhoff Use of long-term auctions for network investment EP 04 | Non-Technical Summary | PDF Abstract: Short-term auctions for access to entry terminals of the British gas-network appear to successfully allocate scarce resources and capture scarcity rent. Now long-term auctions are being introduced to guide future capacity expansion decisions. In our model… Continue Reading
Toru Hattori, Tooraj Jamasb, Michael G Pollitt A comparison of UK and Japanese electricity distribution performance 1985-1998: lessons for incentive regulation EP 03 | Non-Technical Summary | PDF Abstract: International comparisons can be used to study relative efficiency of decision-making units in an industry in a wider context. In particular, cross-country comparisons can, help regulators of… Continue Reading
Paul Joskow, Edward Kahn A quantitative analysis of pricing behaviour in California’s wholesale electricity market during summer 2000: the final word EP 02 | Non-Technical Summary | PDF Abstract: During the Summer of 2000, wholesale electricity prices in California were nearly 500% higher than they were during the same months in 1998 or 1999. This… Continue Reading
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… Continue Reading
Presentation Download The lights stayed on for EPRG Festival of Social Science and Cambridge Science Festival Event The EPRG held a panel event on Thursday 11 March in Little Hall under the ESRC Festival of Social Science and the Cambridge Festival of Science. Open to all, an audence made up of academic, researchers and the general… Continue Reading
Energy Policies: the Good, the Bad and the Ugly Using interactive technology, the EPRG explains which current energy policies (carbon prices, renewable subsidies, winter fuel payments, smart meters etc) make economic sense, which should be dropped and which will always be messy? Presentation Download Podcast available at Judge Business School Website More podcasts of the… Continue Reading
Energy Policy: Should Scientist be in Charge? The EPRG lifts the lid on the long-standing dispute between engineers and economists. Who knows best and whose contributions should be used to solve the problems of energy usage in the UK today? We look for the middle ground between the two. Audience participation though interactive voting is… Continue Reading
In September 2008 a special edition of the Energy Journal was produced in honour of Professor David Newbery. On the 12 and 13 September 2008 a Dinner and Conference was also held in his honour with presentations from the authors of papers in the Journal Conference Agenda Stephen Littlechild – Chairs of Applied Economics and… Continue Reading
William Yu and Michael Pollitt Does Liberalisation cause more electricity blackouts? Evidence from a global study of newspaper reports EPRG 0902 | Non-Technical Summary | PDF Abstract: There is a public perception that electricity liberalisation is the major cause of recent electricity blackouts. This is reflected in the newspaper reporting of blackouts. By contrast, it… Continue Reading
Tooraj Jamasb and Michael Pollitt Electricity Sector Liberalisation and Innovation: An Analysis of the UK Patenting Activities EPRG 0901 | Non-Technical Summary | PDF Also published in: Jamasb, T. and Pollitt, M. ‘Electricity Sector Liberalisation and Innovation: An Analysis of the UK Patenting Activities’, Research Policy Abstract: Liberalisation has had a marked effect on innovative activities… Continue Reading
François Lévêque France’s new Electricity Act: a barrier against the market and the European Union EPRG 1036 | Non-Technical Summary | PDF Abstract: This paper undertakes an ex ante assessment of the new French Electricity Act which was adopted in November 2010. This act gives EDF’s rivals access to a portion of the electricity generated… Continue Reading
Dominique Finon The Efficiency of Policy Instruments for the Deployment of CCS as a Large-sized Technology EPRG 1035 | Non-Technical Summary | PDF Abstract: This paper analyses a set of policy instruments designed to support investment during the learning phase of CCS technology, following the demonstration stage. The focus is on specific barriers to learning… Continue Reading
Aoife Brophy Haney, Tooraj Jamasb, Laura M. Platchkov, Michael G. Pollitt Demand-side Management Strategies and the Residential Sector: Lessons from International Experience EPRG 1034 | Non-Technical Summary | PDF Abstract: This paper explores demand side management (DSM) strategies, including both demand response and energy efficiency policies. The aim is to uncover what features might strengthen… Continue Reading
Vladimir Parail Properties of Electricity Prices and the Drivers of Interconnector Revenue EPRG 1033 | Non-Technical Summary | PDF Abstract: This paper examines the drivers behind revenues of merchant electricity interconnectors and the effect of arbitrage trading over interconnectors on the level and volatility of electricity prices in the connected markets. It sets out a… Continue Reading
Tim Laing and Michael Grubb Low Carbon Electricity Investment: The Limitations of Traditional Approaches and a Radical Alternative EPRG 1032 | Non-Technical Summary | PDF Abstract: Moving to a very low carbon electricity system is central to meeting the goals of UK energy policy, and indeed to the wider global challenge of tackling climate change.… Continue Reading
Florent Silve and Pierre Noël Cost Curves for Gas Supply Security: The Case of Bulgaria EPRG 1031 | Non-Technical Summary | PDF Abstract: We evaluate the cost-effectiveness of various policy options and infrastructure investment proposals to improve the security of gas supply in Bulgaria, one of the most gas insecure countries in the European Union.… Continue Reading
Aoife Brophy Haney and Michael G. Pollitt New Models of Public Ownership in Energy EPRG 1030 | Non-Technical Summary | PDF Abstract: This paper discusses some of the new and continuing ways in which the public sector is involved in the electricity / energy sector around the world. This involvement continues to be significant in… Continue Reading
Aurélie Méjean and Chris Hope The Effect of CO2 Pricing on Conventional and Non-Conventional Oil Supply and Demand EPRG 1029 | Non-Technical Summary | PDF Abstract: What would be the effect of CO2 pricing on global oil supply and demand? This paper introduces a model describing the interaction between conventional and non-conventional oil supply in… Continue Reading
Helena Meier Health Satisfaction and Energy Spending EPRG 1028 | Non-Technical Summary | PDF Abstract: This study explores the link between energy spending and health satisfaction. We aim to show that energy spending is a driver of health satisfaction and therefore of the overall quality of life of individuals. This has important implications for policy… Continue Reading
Tooraj Jamasb, Luis Orea and Michael G. Pollitt Estimating Marginal Cost of Quality Improvements: The Case of the UK Electricity Distribution Companies EPRG 1027 | Non-Technical Summary | PDF Abstract: The main aim of this paper is to develop an econometric approach to estimation of marginal costs of improving quality of service. We implement this… Continue Reading
Chi Kong Chyong, Pierre Noёl and David M. Reiner The Economics of the Nord Stream Pipeline System EPRG 1026 | Non-Technical Summary | PDF Abstract: We calculate the total cost of building Nord Stream and compare its levelised unit transportation cost with the existing options to transport Russian gas to western Europe. We find that… Continue Reading
Christian Growitsch, Tooraj Jamasb, and Heike Wetzel Efficiency Effects of Quality of Service and Environmental Factors: Experience from Norwegian Electricity Distribution EPRG 1025 | Non-Technical Summary | PDF Also published in: Growitsch, C, Jamasb, T & Wetzel, H (2012) “Efficiency effects of observed and unobserved heterogeneity: Evidence from Norwegian electricity distribution networks”. Energy Economics Volume… Continue Reading
Thomas P. Triebs, Michael G. Pollitt and John E. Kwoka The Direct Costs and Benefits of US Electric Utility Divestitures Note: This Working Paper has been superseded by EPRG WP #1525. Continue Reading
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… Continue Reading
Harry van der Weijde and Benjamin F. Hobbs Locational-based Coupling of Electricity Markets: Benefits from Coordinating Unit Commitment and Balancing Markets EPRG 1022 | Non-Technical Summary | PDF Also published in: Journal of Regulatory Economics, June 2011, vol.39 (3), pp 223-251 Abstract: We formulate a series of stochastic models for committing and dispatching electric generators… Continue Reading
Thomas P. Triebs and Michael G. Pollitt Ownership and competition: Finding Performance Breaks for Great Britain’s Power Plants Continue Reading
Tooraj Jamasb, Luis Orea, Michael G. Pollitt Weather Factors and Performance of Network Utilities: A Methodology and Application to Electricity Distribution EPRG 1020 | Non-Technical Summary | PDF Abstract: Incentive regulation and efficiency analysis of network utilities often need to take the effect of important external factors, such as the weather conditions, into account. This… Continue Reading
Andreas Ehrenmann and Yves Smeers Stochastic Equilibrium Models for Generation Capacity Expansion EPRG 1019 | Non-Technical Summary | PDF Abstract: Capacity expansion models in the power sector were among the first applications of operations research to the industry. We introduce stochastic equilibrium versions of these models that we believe provide a relevant context for looking… Continue Reading
Michel-Alexandre Cardin, Steven J. Steer, William J. Nuttall, Geoffrey T. Parks, Leonardo V.N. Gonçalves, Richard de Neufville Minimizing the Cost of Innovative Nuclear Technology Through Flexibility: The Case of a Demonstration Accelerator-Driven Subcritical Reactor Park EPRG 1018 | Non-Technical Summary | PDF | Cost Model Abstract: Presented is a methodology to analyze the expected Levelised… Continue Reading
Stephen Littlechild The Creation of a Market for Retail Electricity Supply EPRG 1017 | Non-Technical Summary | PDF Also published in: Stephen Littlechild, (2010). “The Creation of a Market for Retail Electricity Supply,” RSCAS Working Papers 2010/57, European University Institute Abstract: In September 1989, as part of its privatization program, the Government laid down an… Continue Reading
Yves Smeers, Giorgia Oggioni, Elisabetta Allevi and Siegfried Schaible Generalized Nash Equilibrium and Market Coupling in the European Power System EPRG 1016 | Non-Technical Summary | PDF Abstract: “Market Coupling” is currently seen as the most advanced market design in the restructuring of the European electricity market. Market coupling, by construction, introduces what is generally… Continue Reading
Jevgenijs Steinbuks Interfuel Substitution and Energy Use in the UK Manufacturing Sector EPRG 1015 | Non-Technical Summary | PDF Abstract: This paper investigates interfuel substitution in the UK manufacturing sector. Econometric models of interfuel substitution are applied to energy inputs aggregated by their energy use, and separately for thermal heating processes, where interfuel substitution is… Continue Reading
Lin Fan, Benjamin F. Hobbs and Catherine S. Norman Risk Aversion and CO2 Regulatory Uncertainty in Power Generation Investment: Policy and Modeling Implications EPRG 1014 | Non-Technical Summary | PDF Abstract: Our simulation considers producers in a competitive energy market. Risk averse producers face uncertainty about future carbon regulation. Investment decisions are a two-stage equilibrium… Continue Reading
Steven J. Steer, Michel-Alexandre Cardin, William J. Nuttall, Geoffrey T. Parks and Leonardo V. N. Gonçalves Hedging Against Technology Risks of the Accelerator System of a First-of-a-Kind Accelerator-Driven Subcritical Reactor EPRG 1013 | Non-Technical Summary | PDF Abstract: Demonstrating the generation of electricity with Accelerator-Driven Subcritical Reactor (ADSR) technology will incur substantial financial risk both… Continue Reading
Aoife Brophy Haney and Michael G.Pollitt Exploring the Determinants of “best practice” in Network Regulation: The Case of the Electricity Industry EPRG 1012 | Non-Technical Summary | PDF Also published in: Brophy Haney, A & Pollitt, M (2011) “Exploring the Determinants of “best practice” in Network Regulation: The Case of the Electricity Industry”, Energy Policy… Continue Reading
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… Continue Reading