Employing the new regression tests for Convergence, Club Convergence and Clustering proposed by Phillips and Sul (2007), this paper models and analyzes the behavior of China‘s energy sectors. Energy market ̳convergence clusters‘ are identified using new price data and their regional spatial distributions are mapped for four major fuel types; coal, gasoline, diesel and electricity. It is found t...

17 T he NEA carries out economic studies on a regular basis to assist member countries in their own assessments in support of decision making for the power sector. As part of the studies carried out under the NEA Nuclear Development Committee, several computer tools have been used to calculate the costs of electricity generation, their various elements and their sensitivity to different paramet...

1 Background The Japanese government is conducting electricity system reform in stages and plans to complete this reform by 2020. Historically, all electricity related services in Japan have been overseen by regional monopolistic entities. After the reform is completed, both the wholesale and retail electricity markets will be perfectly competitive, as in most countries in the EU, and many stat...

Pricing options on electrical power is important because of the worldwide trend toward deregulated electricity markets. It is fascinating because of the exotic nature of most power derivatives and because of the many unique features of electricity markets. One of these unique features is that electrical power cannot, in appreciable quantities, be stored. While this plays havoc with arbitrage-fr...

We study the consistency of behavioural simulation methods used to model the operations of wholesale electricity markets. We include di¤erent supply and demand representations and propose the Experience-Weighted Attractions method (Camerer and Ho, 1999) to encompass several behavioural paradigms. We compare the results across assumptions and to standard economic theory predictions. The match is...

Abstract In this article we analyze firms investment incentives in liberalized electricity markets. Since electricity is economically non storable, it is optimal for firms to invest in a differentiated portfolio of technologies in order to serve strongly fluctuating demand. Prior to the Liberalization of electricity markets, for regulated monopolists, optimal investment and pricing strategies h...

In this paper, we develop optimal electricity storage control policies to manage chargingand discharging activities for plug-in hybrid electric vehicles for the benefit of an energy mar-ket participant. We first develop models for both risk-neutral and risk-averse aggregators toparticipate only in a real-time market. The proposed models capture the impact of the charg-ing and di...

In recent years Agent-based Computational Economics (ACE) has become an increasingly important method in market simulation. After liberalization of many former governmental owned or controlled industries the used operations research models are not longer sufficient to simulate market behavior due to individual action and increasing competition. Agentbased simulation appears to be an alternative...

This article argues that competitive electricity markets are prone to the same cycles of boom and bust that appear in commodity markets and in a specialized industry like real estate. The article then demonstrates how boom and bust might appear in the western electricity system using computer simulation. A “business as usual” simulation shows that the west might be at the crest of a building bo...