Vertical separation vs. independent downstream entry in an electricity network: Experimental insights

Ciarreta, Aitor, Fatas, Enrique, Georgantzís, Nikolaos and Gutiérrez-Hita, Carlos (2017) Vertical separation vs. independent downstream entry in an electricity network: Experimental insights. Electric Power Systems Research, 143. 728–738. ISSN 0378-7796

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    Abstract

    We analyze a realistic simulation of a complex electricity network. We obtain the data with a series of experimental sessions designed to closely replicate the Spanish electricity market. In the experiments reported here we compare the status quo with two alternative regulatory market structures. In one of them, labeled as vertical separation, we impose that power generating firms and electricity distributors operate as independent business groups. In the second, we study the effect of entry by independent end-suppliers. Both alternative scenarios dominate the status quo in terms of market efficiency, but the latter of them dominates the former.

    Item Type: Article
    Uncontrolled Keywords: spanish electricity market,vertical relations,laboratory experiments
    Faculty \ School: Faculty of Social Sciences > School of Economics
    University of East Anglia > Faculty of Social Sciences > Research Groups > Experimental Economics
    University of East Anglia > Faculty of Social Sciences > Research Groups > Behavioural and Experimental Economics
    Related URLs:
    Depositing User: Pure Connector
    Date Deposited: 03 Nov 2016 17:00
    Last Modified: 25 Jul 2018 12:53
    URI: https://ueaeprints.uea.ac.uk/id/eprint/61240
    DOI: 10.1016/j.epsr.2016.10.034

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