Long-term contracts have been often advocated as an effective remedy against market power in the ... more Long-term contracts have been often advocated as an effective remedy against market power in the electricity industry, but when contract demand by risk-averse retailers facing increasing competition is considered, an inefficient level of bilateral agreements will emerge in equilibrium. We argue that contracts markets alone are not well suited to prevent the insurgence of anticompetitive practices and have to be complemented by active behavioural prescriptions or/and interventions. Among the pro-competitive regulation practices, we study the contractual obligation measures. Building on Green (2003a), we examine whether and under what conditions such measures would retrieve marginal cost pricing in the spot market, under alternative regulatory scenarios. We discuss in particular the trade-off between the pro-competitive and the crowding-out effects of the contractual obligation and drive several policy implications.
... Ed Page 4. tor Anna CretÌ Bocconi University and IEFE (Centre of Research on Energy and Envir... more ... Ed Page 4. tor Anna CretÌ Bocconi University and IEFE (Centre of Research on Energy and Environmental Economics and Policy) via Roentgen, 1 20136 Milan Italy anna.creti@ unibocconi. it ISBN ... Milan, Italy, anna. creti@ unibocconi. ...
It has been said that “in a world of global economies and technological change such as informatio... more It has been said that “in a world of global economies and technological change such as information superhighways facilitating transfer of often exponentially growing data, it is likely that the challenge for firms may not always be to be among the first to produce the new information, but may instead be how to recognise, obtain, employ and complement the relevant innovative information” (De Bondt 1996).
This study develops a consistent framework to compare FCEV with gasoline ICE (ignition combustion... more This study develops a consistent framework to compare FCEV with gasoline ICE (ignition combustion engine) and applies this framework to the German market over the period 2015-2050. As such it provides for: - The formulation of a proper cost benefit analysis, including the definition of the abatement cost for the hydrogen technology; - The simulation of the results under various technological and cost assumptions; - The identification of the major conceptual issues to facilitate analytical developments. The sources used in the analysis are based on an update of previous industry studies. The main conclusion is that FCEV could be a socially beneficial alternative for decarbonizing part of the projected German car park at the horizon 2050. The corresponding abatement cost would fall in the range of 50 €/t CO2 to 60 €/t CO2. This range is higher than the current estimate for the normative cost of carbon as expressed in Quinet (2009 and 2013), which is around 30€/t in 2015. Still the gap...
ABSTRACT The paper applies an event study methodologyaims to investigate the macroeconomic announ... more ABSTRACT The paper applies an event study methodologyaims to investigate the macroeconomic announcements effects on Standard&Poor’s500 and oil prices. Our results provide evidence for a significant impact of the US macroeconomic news on oil prices. This impact is split into two components, namely the direct effect (common response) and indirect effect (volatility transmission). Altogether our results show that the volatility transmission is bidirectional. Not only a significant volatility transmission from the oil market to the US stock market is revealed, but also a high volatility transmission is recorded from the oil market to the stock market especially after the release of consumption indicators.
... Electric Choices: Deregulation and the Future of Electric Power. Edited by ANDREW N. KLEIT.AN... more ... Electric Choices: Deregulation and the Future of Electric Power. Edited by ANDREW N. KLEIT.ANNA CRETI. Article first published online: 14 DEC 2010. ... More content like this. Find more content: like this article. Find more content written by: ANNA CRETI. ...
We analyze a two-stage game where capacity-constrained electricity generators first choose how mu... more We analyze a two-stage game where capacity-constrained electricity generators first choose how much capacity they make available and then compete in a uniform-price auction. We study how capacity withhold-ing can be used strategically to enforce market power and how ...
This paper analyzes the role of private storage in a market for a commodity (eg natural gas) whos... more This paper analyzes the role of private storage in a market for a commodity (eg natural gas) whose supply is subject to the threat of an irreversible disruption. We focus on the medium term in which seasonality of demand and exhaustibility can be neglected. We characterize the price ...
Long-term contracts have been often advocated as an effective remedy against market power in the ... more Long-term contracts have been often advocated as an effective remedy against market power in the electricity industry, but when contract demand by risk-averse retailers facing increasing competition is considered, an inefficient level of bilateral agreements will emerge in equilibrium. We argue that contracts markets alone are not well suited to prevent the insurgence of anticompetitive practices and have to be complemented by active behavioural prescriptions or/and interventions. Among the pro-competitive regulation practices, we study the contractual obligation measures. Building on Green (2003a), we examine whether and under what conditions such measures would retrieve marginal cost pricing in the spot market, under alternative regulatory scenarios. We discuss in particular the trade-off between the pro-competitive and the crowding-out effects of the contractual obligation and drive several policy implications.
... Ed Page 4. tor Anna CretÌ Bocconi University and IEFE (Centre of Research on Energy and Envir... more ... Ed Page 4. tor Anna CretÌ Bocconi University and IEFE (Centre of Research on Energy and Environmental Economics and Policy) via Roentgen, 1 20136 Milan Italy anna.creti@ unibocconi. it ISBN ... Milan, Italy, anna. creti@ unibocconi. ...
It has been said that “in a world of global economies and technological change such as informatio... more It has been said that “in a world of global economies and technological change such as information superhighways facilitating transfer of often exponentially growing data, it is likely that the challenge for firms may not always be to be among the first to produce the new information, but may instead be how to recognise, obtain, employ and complement the relevant innovative information” (De Bondt 1996).
This study develops a consistent framework to compare FCEV with gasoline ICE (ignition combustion... more This study develops a consistent framework to compare FCEV with gasoline ICE (ignition combustion engine) and applies this framework to the German market over the period 2015-2050. As such it provides for: - The formulation of a proper cost benefit analysis, including the definition of the abatement cost for the hydrogen technology; - The simulation of the results under various technological and cost assumptions; - The identification of the major conceptual issues to facilitate analytical developments. The sources used in the analysis are based on an update of previous industry studies. The main conclusion is that FCEV could be a socially beneficial alternative for decarbonizing part of the projected German car park at the horizon 2050. The corresponding abatement cost would fall in the range of 50 €/t CO2 to 60 €/t CO2. This range is higher than the current estimate for the normative cost of carbon as expressed in Quinet (2009 and 2013), which is around 30€/t in 2015. Still the gap...
ABSTRACT The paper applies an event study methodologyaims to investigate the macroeconomic announ... more ABSTRACT The paper applies an event study methodologyaims to investigate the macroeconomic announcements effects on Standard&Poor’s500 and oil prices. Our results provide evidence for a significant impact of the US macroeconomic news on oil prices. This impact is split into two components, namely the direct effect (common response) and indirect effect (volatility transmission). Altogether our results show that the volatility transmission is bidirectional. Not only a significant volatility transmission from the oil market to the US stock market is revealed, but also a high volatility transmission is recorded from the oil market to the stock market especially after the release of consumption indicators.
... Electric Choices: Deregulation and the Future of Electric Power. Edited by ANDREW N. KLEIT.AN... more ... Electric Choices: Deregulation and the Future of Electric Power. Edited by ANDREW N. KLEIT.ANNA CRETI. Article first published online: 14 DEC 2010. ... More content like this. Find more content: like this article. Find more content written by: ANNA CRETI. ...
We analyze a two-stage game where capacity-constrained electricity generators first choose how mu... more We analyze a two-stage game where capacity-constrained electricity generators first choose how much capacity they make available and then compete in a uniform-price auction. We study how capacity withhold-ing can be used strategically to enforce market power and how ...
This paper analyzes the role of private storage in a market for a commodity (eg natural gas) whos... more This paper analyzes the role of private storage in a market for a commodity (eg natural gas) whose supply is subject to the threat of an irreversible disruption. We focus on the medium term in which seasonality of demand and exhaustibility can be neglected. We characterize the price ...
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