Hydroeletric Generators Competing in Cascades

Detalhes bibliográficos
Autor(a) principal: Moita, Rodrigo Menon
Data de Publicação: 2020
Outros Autores: Monte, Daniel
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: https://periodicos.fgv.br/rbe/article/view/76860
Resumo: Hydroelectric generation is the main source of energy production in manycountries. When firms operate in the same river, or in cascades, the outputof an upstream firm is the input of its downstream rival. We build a dynamicstochastic duopoly model of competition in cascades and show that thedecentralized market is inefficient when rain is frequent. However, at the critical times when rain is infrequent the market allocation isefficient. In an extension of our benchmark model, we show that regulatory intervention might be necessary if peak prices are sufficiently higher than off-peak prices. In such cases, upstream firms delay production in off-peak times, limiting their rivaldownstream generators' production in peak times.
id FGV-8_481368c8086e23f4916106599bb6f1f9
oai_identifier_str oai:ojs.periodicos.fgv.br:article/76860
network_acronym_str FGV-8
network_name_str Revista Brasileira de Economia (Online)
repository_id_str
spelling Hydroeletric Generators Competing in Cascadeselectricity marketsdynamic gameshydroelectric generationHydroelectric generation is the main source of energy production in manycountries. When firms operate in the same river, or in cascades, the outputof an upstream firm is the input of its downstream rival. We build a dynamicstochastic duopoly model of competition in cascades and show that thedecentralized market is inefficient when rain is frequent. However, at the critical times when rain is infrequent the market allocation isefficient. In an extension of our benchmark model, we show that regulatory intervention might be necessary if peak prices are sufficiently higher than off-peak prices. In such cases, upstream firms delay production in off-peak times, limiting their rivaldownstream generators' production in peak times.EGV EPGE2020-03-25info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArticlesArtigosapplication/pdfhttps://periodicos.fgv.br/rbe/article/view/76860Revista Brasileira de Economia; Vol. 74 No. 1 (2020): JAN-MAR; 49-63Revista Brasileira de Economia; v. 74 n. 1 (2020): JAN-MAR; 49-631806-91340034-7140reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGVenghttps://periodicos.fgv.br/rbe/article/view/76860/77562Copyright (c) 2020 Revista Brasileira de Economiainfo:eu-repo/semantics/openAccessMoita, Rodrigo MenonMonte, Daniel2020-03-25T16:09:44Zoai:ojs.periodicos.fgv.br:article/76860Revistahttps://periodicos.fgv.br/rbe/https://periodicos.fgv.br/rbe/oai||rbe@fgv.br1806-91340034-7140opendoar:2024-03-06T13:03:48.083718Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)true
dc.title.none.fl_str_mv Hydroeletric Generators Competing in Cascades
title Hydroeletric Generators Competing in Cascades
spellingShingle Hydroeletric Generators Competing in Cascades
Moita, Rodrigo Menon
electricity markets
dynamic games
hydroelectric generation
title_short Hydroeletric Generators Competing in Cascades
title_full Hydroeletric Generators Competing in Cascades
title_fullStr Hydroeletric Generators Competing in Cascades
title_full_unstemmed Hydroeletric Generators Competing in Cascades
title_sort Hydroeletric Generators Competing in Cascades
author Moita, Rodrigo Menon
author_facet Moita, Rodrigo Menon
Monte, Daniel
author_role author
author2 Monte, Daniel
author2_role author
dc.contributor.author.fl_str_mv Moita, Rodrigo Menon
Monte, Daniel
dc.subject.por.fl_str_mv electricity markets
dynamic games
hydroelectric generation
topic electricity markets
dynamic games
hydroelectric generation
description Hydroelectric generation is the main source of energy production in manycountries. When firms operate in the same river, or in cascades, the outputof an upstream firm is the input of its downstream rival. We build a dynamicstochastic duopoly model of competition in cascades and show that thedecentralized market is inefficient when rain is frequent. However, at the critical times when rain is infrequent the market allocation isefficient. In an extension of our benchmark model, we show that regulatory intervention might be necessary if peak prices are sufficiently higher than off-peak prices. In such cases, upstream firms delay production in off-peak times, limiting their rivaldownstream generators' production in peak times.
publishDate 2020
dc.date.none.fl_str_mv 2020-03-25
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Articles
Artigos
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://periodicos.fgv.br/rbe/article/view/76860
url https://periodicos.fgv.br/rbe/article/view/76860
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://periodicos.fgv.br/rbe/article/view/76860/77562
dc.rights.driver.fl_str_mv Copyright (c) 2020 Revista Brasileira de Economia
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2020 Revista Brasileira de Economia
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv EGV EPGE
publisher.none.fl_str_mv EGV EPGE
dc.source.none.fl_str_mv Revista Brasileira de Economia; Vol. 74 No. 1 (2020): JAN-MAR; 49-63
Revista Brasileira de Economia; v. 74 n. 1 (2020): JAN-MAR; 49-63
1806-9134
0034-7140
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
_version_ 1798943115599413248

Registros relacionados