کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
985519 | 1480680 | 2015 | 21 صفحه PDF | دانلود رایگان |
• We assess the practicality of PV technology in competitive electricity markets.
• Price spikes are higher and more frequent when PV capacity is higher.
• Average (over the year) electricity price increases when PV capacity is higher.
• Profits of electricity producers that employ natural gas are higher when PV capacity rises.
• Consumer surplus decreases when the CO2 tax rate and/or the number of PV-using producers increase.
This paper develops a two-stage model with endogenous capacity and operations to assess the practicality of photovoltaic technology (PV) in competitive electricity markets. Applying our model to stylized data of California's electricity market we demonstrate that electricity price spikes are higher and more frequent the higher the PV capacity. Consequently, the average electricity price rises when construction costs of PV capacity decline due, for example, to technology improvements, bestowing market power and excessive profits on producers employing fossil-using technologies. We also show that an increase in the number of PV-using firms and higher CO2 tax reduce consumer surplus.
Journal: Resource and Energy Economics - Volume 41, August 2015, Pages 70–90