In this paper, we analyze Nash equilibria between electricity producers selling their production on an electricity market and buying CO2 emission allowances on an auction carbon market. The producers’ strategies integrate the coupling of the two markets via the cost functions of the electricity production. We set out a clear Nash equilibrium on the power market that can be used to compute equil...

With federal policies to curb carbon emissions stagnating in the US, California is taking action alone. Sub-national policies can lead to high rates of emissions leakage to other regions as state-level economies are closely connected, including integration of electricity markets. Using a calibrated general equilibrium model, we estimate that California’s cap-and-trade program without restrictio...

A theory advanced in regulatory hearings holds that market performance will be improved if one side of themarket is forced to publicly reveal preferences. For example, wholesale electricity producers claim that retail electricity consumers would pay lower prices if wholesale public utility demand is disclosed to producers. Experimental markets studied here featured decentralized, privately nego...

In 1994 over 18 per cent of Irish households possessed a free electricity allowance. This creates complications in using the 1994-95 Household Budget Survey to estimate an Engel curve for electricity expenditure. Ignoring the allowances leads to biased estimates of elasticities and distorts comparisons between sectors. Examining the sub-populations with and without allowances results in conclus...

The risks and returns associated with different choices of electricity generation technology cannot properly be considered in isolation. The paper considers their impact on an investing company, using Mean-Variance Portfolio (MVP) theory to identify optimal generation portfolios in liberalised electricity markets characterised by fuel, CO2, and electricity price risk. The paper demonstrates the...

The interdependence of electricity and natural gas is becoming a major energy policy and regulatory issue in all jurisdictions around the world. The increased role of gas fired plants in renewable-based electricity markets and the dependence on gas imports make this issue particular striking for the European energy market. In this paper we provide a comprehensive combined analysis of electricit...

The day-ahead electricity market is closely related to other commodity markets such as the fuel and emission markets and is increasingly playing a significant role in human life. Thus, in the electricity markets, accurate electricity price forecasting plays significant role for power producers and consumers. Although many studies developing and proposing highly accurate forecasting models exist...

Existing studies that consider the techno-economics of residential heating systems typically focus on their performance within present-day energy systems. However, the energy system within which these technologies operate will need to change radically if climate change mitigation is to be achieved. This article addresses this problem by modelling small-scale heating techno-economics in the cont...

Electricity systems are undergoing unprecedented change, with growing capacity for low-carbon generation, and an increasingly distributed approach to network control. Furthermore, the severity of climate related threats is projected to increase. To improve our understanding of the risks from these changes, this paper presents a novel modeling approach to assess the resilience of future electric...