[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpio/0402003.html
   My bibliography  Save this paper

Uncertainty over Demand and the Energy Market

Author

Listed:
  • Federico Boffa

    (Northwestern University)

Abstract
The paper examines the three following issues connected to the energy market: 1.Uncertainty ex ante over demand, and the consequent choice of risking to either overproduce, or to underserve the market. 2.Capacity constraints for the energy firms, with the consequence that production is shared by a number of plants. 3.High fixed costs of setting up the distribution procedure, which make it likely to have regional monopolies in the retail market. The questions that the paper tries to answer are the following: 1) Will the energy firms be willing to connect in order to avoid blackouts? The answer in the paper is yes, but we did not consider the fixed cost of establishing the connection, very important indeed 2) What is the optimal structure of the market, i.e., what would the outcome of an unregulated process be? Would this outcome avoid blackouts?

Suggested Citation

  • Federico Boffa, 2004. "Uncertainty over Demand and the Energy Market," Industrial Organization 0402003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0402003
    Note: Type of Document - pdf; prepared on winXP; pages: 40. Preliminary
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/io/papers/0402/0402003.pdf
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • L - Industrial Organization

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpio:0402003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.