The tech war between the U.S. and China has come faster than predicted, writes faculty scholar Moshe Vardi. If the U.S. is to protect its technological advancements, it will need to invest in both domestic and international research talent.
The authors examine how vertical market structures impact the way a tax affects gas prices, using data from gas station contracts with a major Spanish refiner. Find the article in The Economic Journal.
Raúl Bajo Buenestado, Miguel Ángel Borrella-MasJanuary 27, 2022
The ORDC has been proposed in some markets to solve the missing-money problem. The authors estimate the extent to which ORDC prices are negatively affected by wind generation, using hourly data from ERCOT between Jan. 2015 and Feb. 2019. The authors conclude that if wind penetration increases, ORDC may not be a good idea.
Scholar Raúl Bajo Buenestado examines the consumer welfare consequences of introducing capacity payments in the electricity sector, finding that capacity payments reduce price volatility and increase the reliability of the system but also cause consumers’ electricity bills to rise.
Mexico's electricity market has engaged in a deep reform process after decades of a state-owned, vertically integrated, noncompetitive closed industry. Using different modeling strategies, the authors of this paper analyze electricity transmission planning under the new industrial and institutional structure, which is characterized by a nodal pricing system and an independent system operator (ISO).
Though consumers generally pay higher electricity prices in areas with capacity markets, those markets also serve as an insurance mechanism to incentivize capacity additions and reduce the probability of extreme events. Graduate fellow Raúl Bajo Buenestado analyzes the implications of capacity markets for consumers in liberalized energy sectors.
