Intermittent nature of wind power faced ISO and power producers with new challenges. Wind power uncertainty has increased the required reserve capacity and deployment reserve. Consequently, large-scale wind power generation increases ISO costs and consequently reserve prices. On the other hand, since wind power producers are price taker, large-scale wind power generation decreases residual dema...

Real energy prices jumped by 80% from 1973 to 1974. At the same time, the market value of firms plunged by 40%. Is the energy crisis responsible for the dramatic decline in the stock market? Many economists, starting with Baily (1981), have concluded that higher energy prices resulted in the effective scrappage of a substantial fraction of the capital stock. The fall in the stock market reflect...

as a result of higher crude oil prices, in one hand, it is expected that alternative energy resources consumption is increased and consumers change their behavior to decline energy intensity too. on the other hand, more alternative energy consumption can leads to a decline of crude oil aggregate demand. therefore, existence of mutual causality between crude oil price and alternative energy cons...

From Bayesian estimates of a vector autoregression (VAR) which allows for both coefficient drift and stochastic volatility, we obtain the following three results. First, beginning in approximately 1975, the responsiveness of core inflation to changes in energy prices in the United States fell rapidly and remains muted. Second, this decline in the passthrough of energy inflation to core prices h...

Introduction In “The Ethics of Dynamic Pricing,” Faruqui (Faruqui 2010) lays out a case for improved efficiency in using dynamic prices for retail electricity tariffs and addresses various issues about the distributional effects of alternative pricing mechanisms. The principal contrast is between flat or nearly constant energy prices and time-varying prices that reflect more closely the margina...