Pontificia Universidad Católica de Chile Pontificia Universidad Católica de Chile
Enzo Sauma y Shmuel Oren. 2008. Who Have Incentives to Expand the Power Transmission System? Proceedings of the Institute for Operations Research and the Management Science (INFORMS) Annual Meeting, Washington D.C., U.S.A., 12 – 15 de Octubre, 2008 (2008)

Who Have Incentives to Expand the Power Transmission System?

Revista : Proceedings of the Institute for Operations Research and the Management Science (INFORMS) Annual Mee
Tipo de publicación : Conferencia No A*

Abstract

In this paper, we study the economic-incentive structures for long-term transmission investment that curently exist in the United States. In particular, we analyze the incentives/disincentives that some specific market participants (holder of transmission rights, merchant investors, and generation firms) have to make socially efficient transmission expansions. We also propose some variations to the actual incentive structures that could improve efficiency from a social-welfare perspective.