2004, English, Article, Working paper edition: Insufficient Incentives for Investment in Electricity Generation Neuhoff, Karsten; de Vries, Laurens

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/946
Physical Description
  • 734227 bytes, application/​pdf
  • Working Paper
Published
  • 2004-06-16T16:05:47Z
  • 2004-05
Language
  • English

Edition details

Title
  • Insufficient Incentives for Investment in Electricity Generation
Author
  • Neuhoff, Karsten
  • de Vries, Laurens
Published
  • 2004-06-16T16:05:47Z
  • 2004-05
Physical Description
  • 734227 bytes, application/​pdf
  • Working Paper
Subjects
Notes
  • In theory, competitive electricity markets can provide incentives for efficient investment in generating capacity. We show that if consumers and investors are risk averse, investment is efficient only if investors in generating capacity can sign long-term contracts with consumers. Otherwise the uncovered price risk increases financing costs, reduces equilibrium investment levels, distorts technology choice towards less capital-intensive generation and reduces consumer utility. We observe insufficient levels of long-term contracts in existing markets, possibly because retail companies are not credible counter-parties if their final customer can switch easily. With consumer franchise, retailers can sign long-term contracts, but this solution comes at the expense of the idea of retail competition. Alternative capacity mechanisms to stimulate investment are discussed.
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment