Electricity markets in transition: Market distortions associated with retail price controls

Brown, David P.; Eckert, Andrew; Eckert, Heather

doi:10.1016/j.tej.2017.04.010

Cited by 17 publications

(6 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Ouyang et al (2018), Tan et al (2019), and Guan and Xing (2022) measure energy price distortions using the Cobb-Douglas production function. Moreover, using other methods, some scholars measured the price distortions of different energy products such as coal, electricity, and natural gas (Chai et al, 2009;Brown et al, 2017;Cui and Wei, 2017;Shi and Sun, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

Coordinating economic growth and carbon emission reduction in China: evidence from the optimal levels of energy price distortions

Sha

2023

Front. Energy Res.

View full text Add to dashboard Cite

Distorted energy prices cause resource mismatch and hinder the coordinated development of economic growth and carbon emission reduction (CDEC) in China. Therefore, it is essential to determine the optimal levels of energy price distortions. This paper first measures the price distortions of fossil and renewable energy sources and applies a panel smooth transition regression model to assess the optimal threshold values for the degree of energy price distortions. The results show that 1) Fossil energy price distortions are negative, and the price distortion for renewable energy is positive. 2) Energy price distortions inhibit CDEC, and this effect is regionally heterogeneous. 3) The panel smooth transformation model results indicate that distorted energy prices have a nonlinear impact on CDEC. CDEC is significantly hampered in the low regime by distorted fossil energy prices and facilitated in the high regime. In contrast, the distorted renewable energy price shows positive in the low regime and negative in the high regime. We also obtain the optimal intervals for the degree of energy price distortions that promote CDEC. With the target of “growth” and “carbon reduction,” this study provides a reference for improving the energy pricing mechanism and exploring the effective ways of CDEC.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Coordinating economic growth and carbon emission reduction in China: evidence from the optimal levels of energy price distortions

Sha

2023

Front. Energy Res.

View full text Add to dashboard Cite

show abstract

“…Besant-Jones ( 2006 ) believes that service quality, green economic growth, and government fiscal level drive power market reform in developing economies. Brown et al ( 2017 ) argued that revising power markets through various technology reforms and policies, infrastructure, pricing, and fiscal policies lead to efficient electricity tariffs. Xu and Guo ( 2017 ) highlighted the role of electric power market reforms to eliminate monopolies in developing nations.…”

Section: Literature Reviewmentioning

confidence: 99%

Ways to achieve universal access to sustainable electricity in Southeast Asia

Taghizadeh–Hesary

Rasoulinezhad

Phoumin

2022

Econ Change Restruct

View full text Add to dashboard Cite

This paper proposes a multidimensional dependent variable, namely the Green Power Index, as an appropriate proxy for a sustainable power market and assesses its determinants. For this purpose, we apply the product lifecycle management estimator with the panel Autoregressive Distributive Lag framework for the annual data of 2000–2019 of nine Southeast Asian countries. The findings revealed that Southeast Asian nations consider the following as appropriate accelerators to a sustainable power market in the short and long run: economic growth, improved foreign direct investment inflow, increased share of research and development, governance, and privatisation. Conversely, an increase in the price of electricity may slow it down. Empirical findings show that major policy implications include implementing electricity tariff classifications, accelerating economic recovery in the post-COVID-19, boosting bilateral trade and investments and partnerships among Southeast Asian countries and other economic powers in Asia and others.

show abstract

“…This was for households using prepayment meters, generally the most vulnerable consumers. Price caps are widely used instruments of regulation (Braeutigam and Panzar, 1993;Brown et al, 2017;Cowan, 2002;Dobbs, 2004;Parker, 1997;Simshauser, 2014) and these proposals have become part of the active debate on the operation of the UK electricity market. They have subsequently been implemented for a subset of customers (Ofgem, 2017).…”

Section: Motivationmentioning

confidence: 99%

“…To begin, for analytical clarity the model we adopt is extremely stripped down and sparse. We therefore do not deal with the practical problems of introducing, implementing and monitoring the policy (Brown et al, 2017). For example, it is important to be able to separate the markets in an efficient manner, plus there is the question of whether subsidising fuel use is the most effective way of dealing with the difficulties faced by low income households (Felder 2010;Simshauser and Nelson 2014).…”

Section: Motivationmentioning

confidence: 99%

The welfare impacts of discriminatory price tariffs

Danias

Swales

2018

Energy Economics

View full text Add to dashboard Cite

This paper examines the use of asymmetric tariffs as a regulatory instrument. A monopoly setup is adopted in which the firm sells in two markets but price controls are introduced in just one. The regulator's objective is to increase consumer welfare through this price discriminatory practice, with the firm operating under a profit constraint. We consider cases where consumer welfare in the two markets is weighted both equally and unequally and also cases where the cost of supplying the two retail markets is determined in a monopsonistic input market. The results suggest that in certain situations controlling prices in only one market could be a desirable option from a welfare perspective.

show abstract

Electricity markets in transition: Market distortions associated with retail price controls

Cited by 17 publications

References 16 publications

Coordinating economic growth and carbon emission reduction in China: evidence from the optimal levels of energy price distortions

Coordinating economic growth and carbon emission reduction in China: evidence from the optimal levels of energy price distortions

Ways to achieve universal access to sustainable electricity in Southeast Asia

The welfare impacts of discriminatory price tariffs

Contact Info

Product

Resources

About