Technology Choices in the U.S. Electricity Industry before and after Market Restructuring

Zsuzsanna Csereklyei and David Stern

The Energy Journal, 2018, vol. 39, issue 5, 157-182

Abstract: We study the drivers of the adoption of electricity generation technologies between 1970 and 2014 in the lower 48 U.S. states. Since the 1990s, major electricity market restructuring took place in some parts of the United States. We explore the implications of changing from a regulated “cost-of-service†, or rate of return, system to liberalized wholesale electricity markets on technology and fuel choices.We find that wholesale market restructuring resulted in significant immediate investment in various natural gas technologies due to higher expected profits, and a reduction in coal investments. In states that adopted liberalized wholesale electricity markets, higher natural gas price expectations resulted in more investment in coal and renewable technologies, while higher coal price expectations resulted in lower coal-fired baseload power investments. Natural gas price expectations, therefore, have the potential to significantly shape the power generation landscape of the futur

Keywords: Technology choices; Electricity industry; Market restructuring (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.5547/01956574.39.5.zcse (text/html)

Related works:
Journal Article: Technology Choices in the U.S. Electricity Industry before and after Market Restructuring (2018)
Working Paper: Technology choices in the U.S. electricity industry before and after market restructuring (2017)
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:sae:enejou:v:39:y:2018:i:5:p:157-182

DOI: 10.5547/01956574.39.5.zcse

Access Statistics for this article

More articles in The Energy Journal
Bibliographic data for series maintained by SAGE Publications ().