This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
Journal of Economic Perspectives: Vol. 16 No. 1 (Winter 2002)
JEP Volume. 16, Issue 1 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter
Full-text Article (Complimentary)
View Comments on This Article (0) | Login to post a comment
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
The Trouble With Electricity Markets: Understanding California's Restructuring Disaster
Article Citation
Borenstein, Severin. 2002. "The Trouble With Electricity Markets: Understanding California's Restructuring Disaster."
The Journal of Economic Perspectives,
16(1): 191-211.
DOI: 10.1257/0895330027175
DOI: 10.1257/0895330027175
Abstract
In June 2000, after two years of fairly smooth operation, California's deregulated wholesale electricity market began producing extremely high prices and threats of supply shortages. The upheaval demonstrated dramatically why most current electricity markets are extremely volatile: demand is difficult to forecast and exhibits virtually no price responsiveness, while supply faces strict production constraints and prohibitive storage costs. This structure leads to periods of surplus and of shortage, the latter exacerbated by sellers' ability to exercise market power. Electricity markets can function much more smoothly, however, if they are designed to support price-responsive demand and long-term wholesale contracts for electricity.
Article Full-Text Access
Full-text Article (Complimentary)
Authors
Borenstein, Severin (University of California Energy Institute and Haas School of Business, University of California, Berkeley, California, US)
Comments
View Comments on This Article (0) | Login to post a comment
