On the economic incentives of CBP market in Korean electricity wholesale market
0
조회
0
다운로드
1
인용
0
참고문헌
초록
We investigate four incentives in CBP(Cost Based Pool) market in the Korean electricity wholesale market: 1) incentive to over-report the variable cost, 2) incentive to withhold the generating capacity, 3) incentive to reduce the cost, 4) the possibility of optimal fuel mix. It is shown that an incentive to over-report the variable cost exists, market power can be exercised through capacity withholding, an incentive to reduce the cost is not fully provided, and finally in case of two kinds of fuels, optimal fuel mix can be attained in the long-run equilibrium. But with more than two kinds of fuels, optimal fuel mix cannot be guaranteed in the long-run equilibrium.
Abstract
We investigate four incentives in CBP(Cost Based Pool) market in the Korean electricity wholesale market: 1) incentive to over-report the variable cost, 2) incentive to withhold the generating capacity, 3) incentive to reduce the cost, 4) the possibility of optimal fuel mix. It is shown that an incentive to over-report the variable cost exists, market power can be exercised through capacity withholding, an incentive to reduce the cost is not fully provided, and finally in case of two kinds of fuels, optimal fuel mix can be attained in the long-run equilibrium. But with more than two kinds of fuels, optimal fuel mix cannot be guaranteed in the long-run equilibrium.
참고문헌 (8)
- Mocie, "The basic plan for restructuring the electricity industry" (1999)
- Mocie, "The implementation plan for restructuring the electricity indus-try" (1999)
- Mocie, "A study on enhancing competition among Gencos" (2005)
- KPX, "A study on Incentive Policy for Capacity Investment in Electricity Wholesale Competition Market" (2001)
- KPX, "A study on evaluating and improving CBP market" (2005)
- Kim, Y., "A study on the determination of the whole-sale price in Korean electricity market", The Korean Journal of Industrial Organization, 16(1), pp.93~122 (2003)
- Green, R., "Competition in the British Electricity Spot Market", Journal of Political Economy, 100, pp.929~53 (1992)
- Klemperer, P., "Supply Function Equilibria in Oligopoly under Uncertainty", Econometrica, 57, pp.1243~1277 (1989)