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Who Should Own a Renewable Technology? Ownership Theory and an Application

Talat Genc and Stanley Reynolds

No 1703, Working Papers from University of Guelph, Department of Economics and Finance

Abstract: We investigate the market implications of ownership of a new low-cost production technology. We relate our theoretical findings to measuring the impact of renewable energy penetration into electricity markets and examine how the ownership of renewable capacity changes market outcomes (prices, outputs, emissions). As the current public policies influence the renewable energy ownership, this research provides useful insights for policy makers. We show that ownership of renewable capacity will matter when there is market power in energy market. We apply our findings to the Ontario wholesale electricity market to analyze the impact of different ownership structures for wind capacity expansions. We show that consumers enjoy better air quality under the largest firm's ownership, but at the expense of higher prices. We find that market structure and the shape of generation cost functions are the key drivers explaining the impact of renewable ownership on market outcomes.

Keywords: Market structure; technology ownership; renewable energy; greenhouse gas emissions (search for similar items in EconPapers)
JEL-codes: D4 L1 Q2 Q4 Q5 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2017
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-ene, nep-env, nep-reg and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Who should own a renewable technology? Ownership theory and an application (2019) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:gue:guelph:2017-03

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