Market power is typically an important concern in restructured electricity markets. This paper shows that financial traders, who trade alongside physical buyers and sellers, can increase competitiveness and lead to lower consumer prices by effectively competing with generators and restricting their market power.
In this paper, the authors explore role of imperfect information and attentional biases in the context of energy efficiency investments by quantifying how alternative informational interventions affect tenants' acceptance of rent increases in exchange for improved energy efficiency of their heating appliance.
Christopher Knittel, Konstantinos Metaxoglou, Anson Soderbery and Andre Trindade examine the effect of the US Shale Gas Boom on global trade, consumption of coal, and CO2 emissions and the results show that the total quantity of coal traded around in the absence of the Boom is essentially the same as the actual...
In a new CEEPR Working Paper, the authors delineate various aspects of equity and fairness that regulators must grapple with when designing electricity tariffs and show that more economically efficient tariffs can improve several aspects of equity. The research argues that DER adoption under existing tariff schemes may increase inequities already present in the power system.
In a new CEEPR Working Paper, the authors show that inefficiencies from having separate markets to correct an environmental externality are significantly mitigated when firms participate in an integrated product market, using data from an integrated wholesale electricity market.
Climate and energy policies lead to a declining market for the incumbent technologies in electricity markets. Facing the challenge of closures, incumbent firms have incentives to coordinate closures through cross-ownership to achieve a collusive phase-out. For the Nordic nuclear industry, a quantification shows a highly distorted phase-out, both for the consumer surplus and the environment.
In "The Future of Nuclear Energy in a Carbon-Constrained World," released by the MIT Energy Initiative on Sept. 3, the authors analyze the reasons for the current global stall of nuclear energy...
Data analytics will play a major role in advancing global energy efficiency and high performance building goals nationally and globally. As the fault detection and diagnostics industry emerges and...
A new paper compares EU and US electricity market designs, arguing for a focus on correct price formation in the short-term to incentivize investments and reliability. Increased demand-side...
In light of the decentralization of the power sector, a new CEEPR Working Paper carefully considers how industry structure regulations impacts competition, market development, and the efficiency of...
Jacopo Buongiorno and John Parsons, co-directors of the MITEI LCEC for Advanced Nuclear Energy Systems, discuss how to overcome the challenges and realize the benefits of expanding nuclear power.
Christopher Knittel and Francis O'Sullivan, co-directors of the MITEI LCEC for Electric Power Systems Research, are exploring cleaner, more reliable, and more cost-effective solutions.
In 2013, the UK introduced radical market reform to meet the new challenges - a change which some critics denounced as a return to central planning, whilst others feared the costs. The results to...
In a new CEEPR Working Paper, the authors examine the response of vehicle purchase behavior to China’s largest national subsidy program for fuel efficient vehicles during 2010 and 2011.
Soon-to-be assistant professor of applied economics focuses on development and deployment solutions that can help the world move to a low-carbon future.