A Spatial Equilibrium Analysis of Transmission Charge Reform in Japan's Electric Power Industry

Shu-ichi Akiyama and Nobuhiro Hosoe

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: A key intention of the regulatory reform of transmission charge schemes on Japan's electric power market was to promote inter-regional competition between power suppliers by lowering long-distance transmission charges with a postage-stamp charge scheme. This can lead to extensive use of inter-regional links and cause congestion. Congestion segments the market into several regional markets, making the reform less successful. We developed a nine-region spatial equilibrium model to simulate the reform at the peak-load hour. We found the reform would lead to significant increases of inter-regional transmission and congestion at the link between the 50-Hz area and the 60-Hz area.

Pages: 20 pages
Date: 2006-04
New Economics Papers: this item is included in nep-com, nep-ene, nep-geo and nep-sea
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:06022

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