1,720,975 research outputs found
La delibera CIPE di attuazione del Protocollo di Kyoto: riflessioni sui contenuti
No full textRiflessioni sui contenuti della Delibera Cipe di attuazione del Protocollo di Kyoto
A note on forward contracts in leader-follower games'
No full textThis note shows that the pro-competitive effect of pre-commitments is robust to Stackelberg-like market structures. Although our results are in line with Allaz & Vila (1993)'s, the two equilibria di¤er substantially. Sequential interactions foster a monopolization of the contract market and a redistribution of market shares - and hence of profits - towards the follower. Offsetting strategies in the sense of Bain (1949a) can then occur. The use of forward sales to exclude the rival in the output market requires the leader to have a strategic advantage in the contract market, as well as some conditions on the technological structure of the industry
Electricity pricing under "Carbon emissions trading" a dominant firm with competitive fringe model
No full textThe aim of this paper is to analyze the impact of trading of CO2 emissions allowances on electricity pricing in the short run. We mainly refer to the European Emissions Trading Scheme (ETS) and are interested in understanding the role of electricity market structures. We carry out a simple analytical model useful to verify whether (and under which conditions) the impact of the ETS under market power could be lower (or higher) than that under perfect competition. We analyze a context where generators compete in a uniform, first price auction. Market power in the form of a dominant firm facing a competitive fringe model is assumed. The paper highlights that the marginal CO2 opportunity costs are fully included in energy prices when the electricity market is perfectly competitive. Under market power the impact of the ETS equals or exceeds that under the competitive scenario only when there is excess capacity and the share of most polluting plants in the market is low enough. Otherwise, the impact under market power is less than under perfect competition and significantly decreases in the degree of market concentration. This especially occurs when there is not high excess capacity and regardless of either the plant mix or the allowance price. In this case, moreover, the marginal pass-through rate is lower in the peak than in the offpeak hours and can be even nil if the degree of market concentration is high enough
Modelling power pricing under trading of CO2 emission allowances
No full textThe aim of this paper is to analyse the impact of emission trading on power pricing. We mainly refer to the European emission trading scheme (ETS) and are interested in studying the possible correlation between price change and market structure. For this purpose, we carry out a simulating model useful to verify whether (and under which conditions) the impact of the ETS under market power is lower (or higher) than that under perfect competition among generating units
Carbon allowances as inputs or financial assets: lessons learned from the Pilot Phase of the EU-ETS
No full textThis paper provides the most updated state of art in the empirical literature on carbon permits as inputs and financial assets. Analyses refer to the operation of the European market for allowances in the Pilot Phase. Results are particular intriguing as they posit the bases for future assessments
The European Carbon Market in the Financial Turmoil: some empirics from early Phase II
No full textWe estimate an Error-Correction Model by using dynamic OLS to investigate carbon price drivers in early Phase II. The futures contract negotiated from January to December 2008 on the European Climate Exchange is the focus of our analysis. We consider the allowance price as explained by oil prices, the switching price and the Dow Jones Euro Stoxx 50. The long-term cointegration analysis shows that oil was the main driver of carbon prices in 2008. Technological variables, although statistically significant, had almost no impact on the endogenous variable. The financial index has not been a statistically significant regressor. We find an adjustment speed of 8% in the cointegrating equation. The short-term estimates show a two-tier relationship. Before the financial and economic turmoil, energy inputs were the drivers of carbon prices more than financial assets. After the oil crisis, carbon markets have become sensitive to equity pricing. Brent prices have halved their impact on permit prices. This kind of "equity paradox" in CO2 price drivers represents a new finding in carbon market pricing
Gas storage services and regulation in Italy: a Delphi analysis
No full textThis article explores the economic characteristics of the Italian gas storage system. Microeconomic and qualitative methods are used to shed light on past, present and forecasted trends. Notwithstanding the entrenched stagnation of the sector, the analysis highlights a break in trends. The policy-driven phase of liberalization is ending and the market-driven phase has just begun. The former phase has granted fair access to storage, thus narrowing the drawbacks of dominant players, but it has proved dynamically inefficient. Cost-reflective tariffs, capacity constraints and low penalties have both lowered incentives to expand the range of tools for balancing gas demand and penalized industrial customers in the storage service provision. The market-driven phase has just started. The expected increase in working capacity and the entry of newcomers in the authorization process for new facilities are a progress towards the commercial use of storage. To this end, however, a further change in gas market design is needed: the creation of a well functioning spot market
Final Remarks and Policy Recommendations
No full textWe discuss the main results of the models presented in the book and draw some policy lesson
Analisi dell'impatto delle transazioni a termine sul potere di mercato nel settore elettrico
No full textAnalisi dei modelli sulla relazione tra mercato spot e mercato a termine; rivista della letterature; analisi delle decisioni di policy sull'uso dei contratti a termine come mitigazione del potere di mercato; analisi del caso francese (borsa elettrica Powernext
Im-perfectly competitive contract markets for electricity
No full textNotwithstanding academic and regulatory interests as well as empirical evidence, to date the effect of contracts on competition in electricity markets is a very controversial issue. We suggest an original approach to shed light on this debate. Modeling competition by mean of conjectural variations we demonstrate that anti-competitive effects follow the upsurge of discrimination practices. Altering the time distribution of the perfect arbitrage constraint (i.e. ex-post in spite of ex-ante) we put a bridge between IO and financial models on price manipulation. Endogenizing forward demand we provide a rationale for shifting dominant attitudes to forward markets. Finally, studying sequential choices we balance quantity and price competition with Stackelberg leadership. Simulations and qualitative estimates support our findings
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