Vertical Integration and Capacity Investment in the Electricity Sector

David Brown and David Sappington

No 2020-5, Working Papers from University of Alberta, Department of Economics

Abstract: We examine the incentives for and the effects of vertical integration in the electricity sector. We find that vertical integration generally reduces retail prices and increases industry capacity investment, consumer surplus, and total welfare. Unilateral vertical integration is pro table, so it arises in equilibrium. However, ubiquitous vertical integration can reduce aggregate industry pro fit.

Keywords: Vertical Integration; Capacity Investment; Electricity Sector (search for similar items in EconPapers)
JEL-codes: L51 L94 Q28 Q40 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2020-04-27
New Economics Papers: this item is included in nep-com, nep-ene, nep-gen, nep-ind and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://sites.ualberta.ca/~econwps/2020/wp2020-05.pdf Full text (application/pdf)

Related works:
Journal Article: Vertical integration and capacity investment in the electricity sector (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:albaec:2020_005

Access Statistics for this paper

More papers in Working Papers from University of Alberta, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Joseph Marchand ().