Journal of the Association of Environmental & Resource Economists. 2017 Supplement1, Vol. 4, pS37-S84. 48p.
Clean energy, Renewable energy sources, Prices, Power resources, and Electricity
Green electricity defaults should steer individual choices to environmentally friendly alternatives and provide a match with individuals' preferences for an electricity mix. It is debatable whether green electricity defaults conform to this latter intention. Using two design elements from existing electricity markets, costly opt-out of contracts and green electricity certificates, preferences for an electricity mix are elicited in an incentivized laboratory experiment. This study then assesses whether preferences in the absence of default options match with preferences in the presence of default options. It turns out that the alignment of default intentions and preferences depends on the relative price for green electricity. Green electricity defaults at low price premia, as currently applied in several electricity markets, do not match subjects' preferences. The findings are relevant for the design of green electricity defaults. [ABSTRACT FROM AUTHOR]
Journal of Business. May2006, Vol. 79 Issue 3, p1225-1261. 37p.
Electric utilities, Stock prices, Supply & demand, Prices, Economic equilibrium, Energy demand management, and Electricity
The article analyzes the special features of electricity spot prices derived from the physics of this commodity and from the economics of supply and demand in a market pool. Besides mean reversion, a property they share with other commodities, power prices exhibit the unique feature of spikes in trajectories. We introduce a class of discontinuous processes exhibiting a "jump-reversion" component to properly represent these sharp upward moves shortly followed by drops of similar magnitude. Our approach allows to capture, for the first time to our knowledge, both the trajectorial and the statistical properties of electricity pool prices. The quality of the fitting is illustrated on a database of major U.S. power markets.
Maloney, Michael T., McCormick, Robert E., and Tollison, Robert D.
Journal of Law & Economics. Oct84, Vol. 27 Issue 2, p329. 5p. 2 Charts.
ECONOMIC policy, Prices, and Electricity
Investigates the process of economic regulation in competing political jurisdictions in the United States. Exportation of economic regulation; Impact of out-of-state sales on regulated electricity prices; Potential applications of the exportation principles.