Tools
Tools
De Villemeur, Étienne
and Vinella, Annalisa
(2010)
Long-term contracting in hydro-thermal electricity generation: welfare and environmental impact.
TSE Working Paper, n. 10-182, Toulouse
Preview |
Text
Download (597kB) | Preview |
Abstract
We consider electricity generation industries where thermal operators imperfectly compete with hydro operators that manage a (scarce) water stock stored in reservoirs over a natural cycle. We explore how the exercise of intertemporal market power affects social welfare and environmental quality. We show that, as compared to the outcome of spot markets, long-term contracting either exacerbates or alleviates price distortions, depending upon the consumption pattern over the water cycle. Moreover, it induces a second-order environmental effect that, in the presence of a thermal competitive fringe, is critically related to the thermal market shares in the different periods of the cycle. We conclude by providing policy insights.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | 13 July 2010 |
| Place of Publication: | Toulouse |
| JEL Classification: | L13 - Oligopoly and Other Imperfect Markets L93 - Air Transportation Q50 - General |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 18 Jan 2012 06:02 |
| Last Modified: | 27 Oct 2021 13:35 |
| OAI Identifier: | oai:tse-fr.eu:22932 |
| URI: | https://publications.ut-capitole.fr/id/eprint/3401 |
Available Versions of this Item
- Long-term contracting in hydro-thermal electricity generation: welfare and environmental impact. (deposited 18 Jan 2012 06:02) [Currently Displayed]
