Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
707479 | The Electricity Journal | 2007 | 15 Pages |
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
Authors
Michael J. King, Kathleen King, Michael B. Rosenzweig,