Article ID Journal Published Year Pages File Type
707479 The Electricity Journal 2007 15 Pages PDF
Abstract

In a functioning market, price performs a central role of rationing existing capacity to those who value it most and signaling the need for capacity investment. Together, price signals and demand response restrain price spikes when the system is under stress, reducing the political impulse to intervene with measures that erode incentives for capacity investment that would mitigate price excursions.

Related Topics
Physical Sciences and Engineering Energy Energy Engineering and Power Technology
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