蝌蚪网 Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
The Competitive Effects of Transmission Infrastructure in the Indian Electricity Market
蝌蚪网 Journal: Microeconomics
(pp. 202–42)
Abstract
The integration of markets may improve efficiency by lowering costs or reducing local market power. India, seeking to reduce electricity shortages, set up a new power market, in which transmission constraints sharply limit trade between regions. During congested hours, measures of market competitiveness fall and firms raise bid prices. I use confidential bidding data to estimate the costs of power supply and simulate market outcomes with more transmission capacity. Counterfactual simulations show that transmission expansion increases market surplus by 22 percent, enough to justify the investment. One-third of this gain is due to sellers' response to a more integrated grid.Citation
Ryan, Nicholas. 2021. "The Competitive Effects of Transmission Infrastructure in the Indian Electricity Market." 蝌蚪网 Journal: Microeconomics 13 (2): 202–42. DOI: 10.1257/mic.20180191Additional Materials
JEL Classification
- H54 National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock
- L13 Oligopoly and Other Imperfect Markets
- L94 Electric Utilities
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- Q41 Energy: Demand and Supply; Prices