Generation Capacity Expansion in a Risky Environment: A Stochastic Equilibrium Analysis

References

• Anderson D. Models for determining least-cost investments in electricity supply. Bell J. Econom. Management Sci. (1972) 3(1):267–299Crossref, Google Scholar
• Arellano M. S., Serra P. A model of market power in electricity industries subject to peak load pricing. Energy Policy (2007) 35(10):5130–5135Crossref, Google Scholar
• Artzner P., Delbaen F., Eber J.-M., Heath D. Coherent measures of risk. Math. Finance (1989) 9:203–228Crossref, Google Scholar
• Artzner P., Delbaen F., Eber J.-M., Heath D., Ku H. Coherent multiperiod risk measurement. (2002) . Working paper, ETH, Zurich, http://www.math.ethz.ch/~delbaenGoogle Scholar
• Artzner P., Delbaen F., Eber J.-M., Heath D., Ku H. Coherent multiperiod risk adjusted values and Bellman's principle. Ann. Oper. Res. (2007) 152(1):5–22Crossref, Google Scholar
• Boom A., Buehler S. Restructuring electricity markets when demand is uncertain: Effects on capacity investments, retail prices and welfare. (2007) . Discussion paper 2007–09, Center for Industrial Economics, Department of Economics, University of Copenhagen, CopenhagenGoogle Scholar
• Burtraw D., Palmer K. L. Compensation rules for climate policy in the electricity sector. J. Policy Anal. Management (2008) 27(4):819–847Crossref, Google Scholar
• Cabero J., Ventosa M., Cerisola S., Baillo A. Modeling risk management in oligopolistic electricity markets: A Benders decomposition approach. IEEE Trans. Power Systems (2010) 25(1):263–271Crossref, Google Scholar
• Carlton D. Peak load pricing with stochastic demand. Amer. Econom. Rev. (1977) 67(5):1006–1010Google Scholar
• Chao H.-P. Peak load pricing and capacity planning with demand and supply uncertainty. Bell J. Econom. (1983) 14(1):179–190Crossref, Google Scholar
• Cramton P., Kerr S. Tradable carbon permit auctions: How and why to auction not grandfather. Energy Policy (2002) 30(4):333–345Crossref, Google Scholar
• Cramton P., Stoft S. The convergence of market designs for adequate generating capacity with special attention to the CAISO's resource adequacy program. (2006) . White paper for California Electricity Oversight Board, April 2006Google Scholar
• Crew M., Chitru S. F., Kleindorfer P. R. The theory of peak-load pricing: A survey. J. Regulatory Econom. (1995) 8(3):215–248Crossref, Google Scholar
• de Frutos M.-A., Fabra N. Endogenous capacities and price competition: The role of demand uncertainty. (2007) . CEPR Discussion Paper 6096, Centre for Economic Policy Research, LondonGoogle Scholar
• de Frutos M.-A., Fabra N., von der Fehr N.-E. Investment incentives and auction design in electricity markets. (2008) . CEPR Discussion Paper 6626, Centre for Economic Policy Research, LondonGoogle Scholar
• Eichhorn A., Römisch W. Polyhedral risk measures in stochastic programming. SIAM J. Optim. (2005) 16(1):69–95Crossref, Google Scholar
• Fan L., Hobbs B. F., Norman C. S. Risk aversion and CO2 regulatory uncertainty in power generation investment: Policy and modeling implications. J. Environ. Econom. Management (2010) 60(3):193–208Crossref, Google Scholar
• Gabszewicz J., Poddar S. Demand fluctuation and capacity utilization under duopoly. Econom. Theory (1997) 10(1):131–146Crossref, Google Scholar
• Grimm V., Zoettl G. Strategic capacity choice under uncertainty: The impact of market structure on investment and welfare. (2008) . Working paper, University of Cologne, Cologne, GermanyGoogle Scholar
• Gürkan G., Ozdemir O., Smeers Y. Capacity investment in electricity markets: Perfect competition. (2009) . Working paper, Department of Econometrics and Operations Research, Tilburg University, Tilburg, The NetherlandsGoogle Scholar
• Hogan W. W. On an “energy-only” electricity market design for resource adequacy. (2005) (HEPG, Harvard University, Cambridge, MA) Google Scholar
• Joskow P., Helm D. Competitive electricity markets and investment in new generation capacity. The New Energy Paradigm (2007) (Oxford University Press, Oxford, UK) Google Scholar
• Joskow P., Tirole J. Reliability and competitive electricity markets. RAND J. Econom. (2007) 38(1):60–84Crossref, Google Scholar
• Kannan A., Shanbhag U. V., Kim H. M. Risk-based generalized Nash games in power markets: Characterization and computation of equilibria. (2009) . University of Illinois. Submitted for publicationGoogle Scholar
• Morlat G., Bessière F. Vingt-cinq ans d'économie électrique. Monographie de Recherche Opérationnelle (1971) 11(Dunod, Paris) Google Scholar
• Murphy F. H., Smeers Y. Generation capacity expansion in imperfectly competitive restructured electricity markets. Oper. Res. (2005) 53(4):646–661Link, Google Scholar
• Murphy F. H., Sen S., Soyster A. L. Electric utility expansion planning in the presence of existing capacity: A nondifferentiable, convex programming approach. Comput. Oper. Res. (1987) 14(1):19–31Crossref, Google Scholar
• Neuhoff K., Matthes F. C. The role of auctions for emissions trading. (2008) . Report, Climate Strategies, http://www.climatestrategies.org/research/our-reports/category/1.htmlGoogle Scholar
• Oggioni G., Smeers Y. Evaluating the impact of average cost based contracts on the industrial sector in the European emission trading scheme. Central Eur. J. Oper. Res. (2009) 17(2):181–217Crossref, Google Scholar
• Oren S. Generation adequacy via call option obligations: Safe passage to the promised land. Electricity J. (2005) 18(9):28–42Crossref, Google Scholar
• Panzar J. C. A neoclassical approach to peak-load pricing. Bell J. Econom. (1976) 7(2):521–530Crossref, Google Scholar
• Reynolds S. S., Wilson B. J. Bertrand-Edgeworth competition, demand uncertainty, and asymmetric outcomes. J. Econom. Theory (2000) 92(1):122–141Crossref, Google Scholar
• Rockafellar R. T., Uryasev S. Conditional value-at-risk for general loss distributions. J. Banking Finance (2002) 26(7):1443–1471Crossref, Google Scholar
• Ruszyński A., Shapiro A. Optimization of convex risk functions. Math. Oper. Res. (2006) 31(3):433–452Link, Google Scholar
• Sherali H. D., Staschus K., Huacuz J. M. An integer programming approach and implementation for an electric utility capacity planning problem with renewable energy sources. Management Sci. (1987) 33(7):831–847Link, Google Scholar
• Sirikum J., Techanitisawad A., Kachitvichyanukul V. A new efficient GA-Benders' decomposition method for power generation expansion planning with emission controls. IEEE Trans. Power Systems (2007) 22(3):1092–1100Crossref, Google Scholar
• Stoft S.Power System Economics (2002) (IEEE Press, New York) Crossref, Google Scholar
• von der Fehr N.-H., Harbord D. C. Capacity investment and competition in decentralised electricity markets. (1997) . Memorandum, 27, Department of Economics, University of Oslo, OsloGoogle Scholar
• Zhao J., Hobbs B. F., Pang J.-S. Long-run equilibrium modeling of emissions allowance allocation systems in electric power markets. Oper. Res. (2010) 58(3):529–548Link, Google Scholar
• Zöttl G. Investment decisions in liberalized electricity markets: A framework of peak load pricing with strategic firms. (2008) . CORE Discussion Paper 2008/41, Université Catholique de Louvain, Louvain-la-Neuve, BelgiumGoogle Scholar