Silvester van Koten European University Institute, Florence CERGE-EI, Prague Experimental Energy Economics Presenting results of Van Koten, S. and Ortmann, A., 2011. “Structural versus Behavioral Remedies in the Deregulation of Electricity Markets: An Experimental Investigation Guided by Theory and Policy Concerns.”
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Silvester van Koten
European University Institute, FlorenceCERGE-EI, Prague
Experimental Energy
Economics
Presenting results of Van Koten, S. and Ortmann, A., 2011. “Structural versus Behavioral Remedies in the Deregulation of Electricity Markets: An Experimental Investigation Guided by Theory and Policy Concerns.”
Theoretical predictions (following Allaz & Vila, 1993)Silvester van Koten Experimental Energy Economics
Structural measure of divestiture
More competitors
Cournot
More competitors -> more supply & lower prices
Silvester van Koten Experimental Energy Economics
Behavioral measure of forward market
More supply of each competitor
Allaz & Villa (1993)
Forward market -> more supply & lower prices
Remedies
1. Theory
2. “Engineering”
“Engineering”
Economics Experiment
“Engineering”
Economics Experiment
“Engineering”Economics ExperimentThe new state-of-the-art LEE Laboratory (www.vse-lee.cz)
Silvester van Koten Experimental Energy Economics
3035
4045
5055
1 4 8 12 16 20 24Period
M3_mean M3F_meanM4_mean
M3, M3F, M4
Silvester van Koten Experimental Energy Economics
Structural measure effect
(1 more competitor)
Behavioral measure effect
(Forward market) >
Both measures have pro-competitive effects:– Behavioral: Introducing a forward market– Structural: Adding one more competitor
Design focus on BEHAVIORAL measure first– Behavioral measure MORE effective than structural
measure
Silvester van Koten Experimental Energy Economics
Experimental Energy Economics
• Forward market versus competition*
• Abatement decisions under the Emission Trading Scheme in the EU.
• Self-Regulatory Organisations and Governmental Oversight
Silvester van Koten Experimental Energy Economics
Questions?
Silvester van Koten
European University Institute, FlorenceCERGE-EI, Prague
Experimental Energy
Economics
Presenting results of Van Koten, S. and Ortmann, A., 2011. “Structural versus Behavioral Remedies in the Deregulation of Electricity Markets: An Experimental Investigation Guided by Theory and Policy Concerns.”