A Critique of Wolak’s Evaluation of the NZ Electricity Market: The Incentive to Exercise Market Power with Elastic Demand and Transmission Loss
Type of content
Discussion / Working Papers
UC permalink
Publisher's DOI/URI
Thesis discipline
Degree name
Publisher
College of Business and Economics
University of Canterbury. Department of Economics and Finance
University of Canterbury. Management
University of Canterbury. Department of Economics and Finance
University of Canterbury. Management
Journal Title
Journal ISSN
Volume Title
Language
Date
2011
Authors
Hogan, S.
Jackson, P.
Abstract
This paper is the second in a symposium of papers that examine the 2009 report by Frank Wolak into the New Zealand electricity market. In this paper, we discuss the Report’s measures of the ability and incentives of generators to exercise unilateral market power. We show that the construction and interpretation of these measures are highly sensitive to some key assumptions, particularly those concerning the elasticity of demand for electricity in the wholesale market and the amount of transmission loss on the national grid.
Description
RePEc Working Paper Series: No. 09/2011
Citation
Hogan, S., Jackson, P. (2011) A Critique of Wolak’s Evaluation of the NZ Electricity Market: The Incentive to Exercise Market Power with Elastic Demand and Transmission Loss. Department of Economics and Finance. 20pp..
Keywords
Wolak Report, electricity markets, market power
Ngā upoko tukutuku/Māori subject headings
ANZSRC fields of research
Fields of Research::38 - Economics::3801 - Applied economics::380114 - Public economics - publicly provided goods
Field of Research::09 - Engineering::0906 - Electrical and Electronic Engineering::090607 - Power and Energy Systems Engineering (excl. Renewable Power)
Field of Research::09 - Engineering::0906 - Electrical and Electronic Engineering::090607 - Power and Energy Systems Engineering (excl. Renewable Power)