Price Dynamics in a Network of Decentralized Power Markets

Arthur S De Vany and W. Walls

Journal of Regulatory Economics, 1999, vol. 15, issue 2, 123-40

Abstract: In this paper, we model the dynamic behavior of prices in a network of interconnected, but decentralized, electric power markets--an architecture very different from the centralized exchanges and power pools currently being implemented by many state regulators. We estimate dynamic equations of unregulated, wholesale power prices at spot markets scattered over an eleven-state trading region. The results indicate that this decentralized system of power and transmission trading produces prices that are efficient and dynamically stable over this vast network. Price convergence in the power market is similar to what has been observed in the recently deregulated natural gas market. Copyright 1999 by Kluwer Academic Publishers

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (34)

Downloads: (external link)
http://journals.kluweronline.com/issn/0922-680X/contents link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
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:kap:regeco:v:15:y:1999:i:2:p:123-40

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11149/PS2

Access Statistics for this article

Journal of Regulatory Economics is currently edited by Menaham Spiegel

More articles in Journal of Regulatory Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().