Since 2014
Hydroeletric Generators Competing in Cascades
Revista Brasileira de Economia
View Archive Info| Field | Value | |
| Title |
Hydroeletric Generators Competing in Cascades
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| Creator |
Moita, Rodrigo Menon; Insper
Monte, Daniel |
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| Subject |
electricity markets, dynamic games, hydroelectric generation
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| 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.
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| Publisher |
EGV EPGE
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| Contributor |
Instituto Acende Brasil
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| Date |
2020-03-25
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Articles Artigos |
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| Format |
application/pdf
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| Identifier |
http://bibliotecadigital.fgv.br/ojs/index.php/rbe/article/view/76860
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| Source |
Revista Brasileira de Economia; v. 74, n. 1 (2020): JAN-MAR; 49-63
Revista Brasileira de Economia; v. 74, n. 1 (2020): JAN-MAR; 49-63 1806-9134 0034-7140 |
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| Language |
eng
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| Relation |
http://bibliotecadigital.fgv.br/ojs/index.php/rbe/article/view/76860/77562
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| Rights |
Direitos autorais 2020 Revista Brasileira de Economia
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