September 23, 2009

Power Prices Work Best to Support Reliability when Prices Are Locational

Michael Giberson From a reliability perspective, the crucial aspect of the real-time wholesale prices is that they result from the security-constrained economic dispatch, which is based on a real-time assessment of grid capabilities. Experience has shown that market prices work best to support reliability when prices are locational, because locational prices that are consistent with …

Power Prices Work Best to Support Reliability when Prices Are Locational Read More »

Paternalistic Regulation and the Knowledge Problem

Lynne Kiesling A recent essay from legal scholars Todd Zywicki and Josh Wright analyzes the proposed Consumer Financial Protection Agency, and over at Volokh, Ilya Somin adds to their analysis based on his own research. Both pieces are founded on an important core idea — paternalistic regulation that is grounded in the desire to mitigate …

Paternalistic Regulation and the Knowledge Problem Read More »