Publications

Tierney, Susan. Regulatory Treatment of Purchased Power: Pass Through or Profit Center? Give Away or Value Creation? Presentation to the HEPG 52nd Plenary Session. October, 2008. 26 pages.

Ludwigson, Jon. Oversight of RTO's. Presentation to the Harvard Electricity Policy Group 53rd Plenary Session, December 11, 2008. 13 pages.

Glazer, Craig. RTO Accountability: The Mission and the Measurement. Presentation to the Harvard Electricity Policy Group 53rd Plenary Session, December 11, 2008. 26 pages.

Holstein, Michael. RTO Performance: Are They Accountable? Presentation to the Harvard Electricity Policy Group 53rd Plenary Session, December 11, 2008. 8 pages.

Kelly, Susan. RTO Performance, or - "What's My Motivation Here" Presentation to the Harvard Electricity Policy Group 53rd Plenary Session, December 11, 2008. 14 pages.

Jaeger, Doug. Beneficiaries of Transmission Expansion: Who, Where, When and How Much? 31 May 2007. Presentation, 17 pages.

Adams, Kurt. Beneficiaries Pay: Why and How Much? 31 May 2007. Presentation, 14 pages.

Moeller, Clair. Electrical Transmission Tariffs: Who Benefits, Who Pays, and Who Decides? 31 May 2007. Presentation, 8 pages.

Hogan, William. Electricity Market Hybrids: Mixed Market Designs and Infrastructure Investments. September 18, 2007. Presentation, 26 pages.

Baldick, Ross and Ashley Brown, James Bushnell, Susan Tierney and Terry Winter. A National Perspective on Allocating the Costs of New Transmission Investment: Practice and Principles. September, 2007. Paper, 86 pp.

Baldick, Ross and Ashley Brown, James Bushnell, Susan Tierney and Terry Winter. A National Perspective on Allocating the Costs of New Transmission Investment: Practice and Principles. September, 2007. Paper, 86 pp.

Baldick, Ross and Ashley Brown, James Bushnell, Susan Tierney and Terry Winter. A National Perspective on Allocating the Costs of New Transmission Investment: Practice and Principles. September, 2007. Paper, 86 pp.

Ott, Andrew. Transmission Expansion Analysis. 31 May 2007. Presentation, 12 pages.

Hartridge, Olivia. Carbon Markets: Why and How? Presentation to the HEPG Fifty-First Plenary Session, 1 June 2007.  19 pages.

Woodfin, Dan. Competitive Renewable Energy Zones: Texas' Solution to the Poultry Dilemma? 16 March 2007. Presentation, 15 pages.

Tierney, Susan. Decoding Developments in Today's Electric Industry - Ten Points in the Prism. October 2007. 38 pages.

Zachmann, Georg and Christian von Hirschhausen. First Evidence of Asymmetric Cost Pass-through of EU Emissions Allowances: Examining Wholesale Electricity Prices in Germany. March 2007. Paper, 8 pages.

 

 

This paper applies the literature on asymmetric price transmission to the emerging commodity market for EU emissions allowances (EUA). We utilize an error correction model and an autoregressive distributed lag model to measure the relationship between CO2 price changes and the development of wholesale electricity prices. Using data from the German market for electricity and EUAs, we find that the rising prices of EUAs have a stronger impact on wholesale electricity prices than falling prices -- the first empirical evidence of asymmetric cost pass-through for these new allowances.

 

Zachmann, Georg and Christian von Hirschhausen. First Evidence of Asymmetric Cost Pass-through of EU Emissions Allowances: Examining Wholesale Electricity Prices in Germany. March 2007. Paper, 8 pages.

 

 

This paper applies the literature on asymmetric price transmission to the emerging commodity market for EU emissions allowances (EUA). We utilize an error correction model and an autoregressive distributed lag model to measure the relationship between CO2 price changes and the development of wholesale electricity prices. Using data from the German market for electricity and EUAs, we find that the rising prices of EUAs have a stronger impact on wholesale electricity prices than falling prices -- the first empirical evidence of asymmetric cost pass-through for these new allowances.

 

Stavins, Robert. Global Climate Change: What is to be Done? An Economic Perspective. 1 June 2007. Presentation, 15 pages. See also Beyond Kyoto: Getting Serious About Climate Change. The Milken Institute Review, First Quarter 2005. Article, 10 pages.

Murphy, Frederic and Yves Smeers. On the Impact of Forward Markets on Investment in Oligopolistic Markets with Reference to Electricity. Part I: Deterministic Demand. 15 June 2007, 38 pages.

 

 

This paper analyzes the properties of three capacity games in an oligopolistic market with Cournot players and deterministic demand. In the first game, capacity and the operation of that capacity is determined simultaneously. This is the classic open-loop Cournot game. In the second game, capacity is decided in the first stage and the operation of that capacity is determined in the second stage. The first-stage decision of each player is contingent on the solution of the second-stage game. This is a two-stage, closed-loop game. We show that when the solution exists, it is the same as the solution in the first game. However, it does not always exist. The third game has three stages with a futures position taken between the capacity stage and the operations stage and is also a closed-loop game. As with the second game, the equilibrium is the same as the open-loop game when it exists. However, the conditions for existence are more restrictive with forward markets added. When both games have an equilibrium, the solution values are identical. The results are very different from games with no capacity stage as studied by Allaz and Vila (1993), where they concluded that forward markets can ameliorate market power.