Transmission-constrained oligopoly in the Japanese electricity market

Energy Economics

Volumn 31, Issue 5, 2009, Pages 690-701

  Tanaka, Makoto ^a  

^a NATIONAL GRADUATE INSTITUTE FOR POLICY STUDIES   (Japan)

Author keywords

Complementarity; Cournot; Divestiture; Electricity; Transmission

Indexed keywords

COMPLEMENTARITY; COURNOT; DIVESTITURE; ELECTRIC POWER COMPANY; ELECTRICITY MARKET; LINEAR COMPLEMENTARITY; MARKET POWER; TRANSMISSION CAPACITIES; TRANSMISSION CONGESTION; TRANSMISSION LINE; WESTERN REGION; WHOLESALE ELECTRICITY MARKETS;

COMMERCE; COMPETITION; ELECTRIC UTILITIES;

TRAFFIC CONGESTION;

ECONOMIC ANALYSIS; ELECTRICITY; ENERGY MARKET; MODELING; OLIGOPOLY;

ASIA; EURASIA; FAR EAST; JAPAN;

EID: 67650726849     PISSN: 01409883     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.eneco.2009.03.004     Document Type: Article

References (26)

1. Agency for Natural Resources and Energy, ANRE. 7th Meeting of Electricity Industry Committee, reference document (2002) (in Japanese)
2. Agency for Natural Resources and Energy, ANRE. 1st Meeting of Power Grid Utilization System WG, reference document (2002) (in Japanese)
3. Agency for Natural Resources and Energy, ANRE. Outlook for Electric Supply and Demand (2003) (in Japanese)
4. Agency for Natural Resources and Energy, ANRE (2006) Report by the Subcommittee to Evaluate System Reforms, reference materials.
5. Akiyama, S., and Hosoe, N., (2006) "A Spatial Equilibrium Analysis of Transmission Charge Reform in Japan's Electric Power Industry," RIETI Discussion Paper Series 06-E-022.
6. Berry C.A., Hobbs B.F., Meroney W.A., O'Neill R.P., and Stewart Jr. W.R. Understanding how market power can arise in network competition: a game theoretic approach. Utilities Policy 8 (1999) 139-158
7. Borenstein S., Bushnell J.B., and Stoft S. The competitive effects of transmission capacity in a deregulated electricity industry. Rand Journal of Economics 31 2 (2000) 294-325
8. Cardell J.B., Hitt C.C., and Hogan W.W. Market power and strategic interaction in electricity networks. Resource and Energy Economics 19 (1997) 109-137
9. Dirkse S.P., and Ferris M.C. The PATH solver: a non-monotone stabilization scheme for mixed complementarity problems. Optimization Methods and Software 5 (1995) 123-156
10. Federation of Electric Power Companies of Japan, FEPC. Handbook of Electric Power Industry (2002) (in Japanese)
11. Green R. Increasing competition in the british electricity spot market. Journal of Industrial Economics 44 (1996) 205-216
12. Green R. The electricity contract market in England and Wales. Journal of Industrial Economics 47 (1999) 107-124
13. Hasuike, K., and Kanemoto, Y., (2005) "Policy Evaluation for Oligopolistic Markets-A Case of Wholesale Electricity Market," RIETI Discussion Paper Series 05-J-024 (in Japanese).
14. Hattori T. A simulation analysis of the potential for market power in the western segment of the prospective Japanese electricity market. Paper presented at Advanced Workshop in Regulation and Competition, 16th Annual Western Conference, San Diego, California (2003)
15. Helman, U. (2003) "Oligopolistic Competition in Wholesale Electricity Markets: Theory, Large-Scale Simulation and Policy Analysis using Complementarity Models," Ph.D. Thesis, The Johns Hopkins University.
16. Hobbs B.F. Linear complementarity models of Nash-Cournot competition in bilateral and POOLCO power markets. IEEE Transactions on Power Systems 16 (2001) 194-202
17. Hobbs B.F., and Helman U. Complementarity-based equilibrium modeling for electric power markets. In: Bunn D.W. (Ed). Modeling Prices in Competitive Electricity Markets (2004), J. Wiley, London, U.K.
18. Hobbs B.F., Metzler C.B., and Pang J.-S. Strategic gaming analysis for electric power systems: an MPEC approach. IEEE Transactions on Power Systems 15 (2000) 637-645
19. Metzler C.B., Hobbs B.F., and Pang J.-S. Nash-Cournot equilibria in power markets on a linearized DC network with arbitrage: formulations and properties. Networks and Spatial Economics 3 2 (2003) 123-150
20. Ookawara T. Topics on power demand and supply in Tokyo area. In: Hatta T., and Yashiro N. (Eds). Economic Solutions to Tokyo's Problem (1995), University of Tokyo Press, Tokyo, Japan (in Japanese)
21. Schweppe F.C., Caramanis M.C., Tabors R.D., and Bohn R.E. Spot Pricing of Electricity (1988), Kluwer Academic Publishers, Norwell, MA
22. Smeers, Y., and Jing-Yuan, W., (1997) "Spatially Oligopolistic Model with Opportunity Cost Pricing for Transmission Capacity Reservations-A Variational Inequality Approach," Universite' Catholique de Louvain, CORE Discussion Paper 9717.
23. Tanaka, M. (2006) "A simulation analysis of transmission-constrained oligopoly in the wholesale electricity market," RIETI discussion paper series 06-J-010 (in Japanese).
24. Tanaka M. Extended price cap mechanism for efficient transmission expansion under nodal pricing. Networks and Spatial Economics 7 3 (2007) 257-275
25. Viscusi W.K., Harrington J.E., and Vernon J.M. Economics of Regulation and Antitrust. Fourth ed. (2005), MIT Press, Cambridge, MA
26. Yao J., Oren S.S., and Adler I. Two-settlement electricity markets with price caps and Cournot generation firms. European Journal of Operational Research 181 3 (2007) 1279-1296