Michael Giberson The marginal cost of generation from a wind power generator is essentially zero, which means once the generation is installed you pretty much want to use every bit of wind power generated. A problem, of course, is that wind-based generation is not particularly dispatchable. You don’t tell it when to run, you just …
Wind Power and Real-time Pricing: Mutual Benefits Read More »
Michael Giberson Recently, William Hogan gave a presentation at IDEI and the Toulouse School of Economics titled Electricity Market Design: Coordination, Pricing and Incentives, or, as he more colloquially puts it early in the talk, “Electricity market pricing, and how to think about it.” The 42 minute video is available from the EU Energy Policy …
Electricity Market Pricing and How to Think About It Read More »
Michael Giberson That is the goal. Few numbers show up in the Christian Science Monitor article to support that claim, but the people discussed are launching a business with the goal of improving the design further and then go to production. The key innovations appear to be in the cheaper process to produce the appropriately …
Michael Giberson Arnold Kling has some interesting insights on what is sometimes pejoratively referred to as price gouging: One of the issues that [Russ Robert’s didactic novel, The Price of Everything] raises–the very first one, in fact–is the morality of raising prices when something becomes scarce, such as flashlights after a weather disaster. Russ makes …
On the Morality of Raising Prices in an Emergency Read More »
Michael Giberson What is the current and future state of regional wholesale electricity markets? FERC wants to know, and so it has assembled a panel of experts to appear at a July 1, 2008, technical conference to be held at the Commission. All interested persons are invited to attend, and there is no registration required. …
Current and Future State of Regional Wholesale Electricity Markets Read More »
Michael Giberson Will Wilkinson points to a post by Joshua Knobe discussing a philosophy experiment conducted by U. of Arizona philosophers Chris Freiman and Shaun Nichols. Here is how Knobe describes the experiment: Subjects were randomly assigned either to receive [an] ‘abstract’ question or a ‘concrete.’ Subjects who had been assigned to receive an abstract …
Fairness Reasoning in the Abstract and the Concrete Read More »
Michael Giberson Rich Sweeney, at Common Tragedies, raises the question “Is dynamic pricing green?” Riffing off of Lynne’s article in Smart Grid News and a complementary post here on Knowledge Problem, Rich acknowledges that dynamic pricing for retail power can encourage load shifting away from peaks and may even reduce consumption overall. But, he suggests, …
Will Dynamic Retail Power Prices Help the Environment? Read More »
Michael Giberson Steven Stoft, at the EU Energy Policy Blog, observes that market driven conservation is a slow process: Conservation is the main way consumers respond to high market prices. When price goes up, consumption comes down–but it takes a while for the full price effect to play out. Market-driven conservation is a slow process–slow …
Conservation of Resources: Prices Change Everything Read More »
Michael Giberson Grant McCracken cries out: “JSTOR, get out of the way!” [T]his stuff is bought and paid for. It is time to release it into the public domain. Surely, there is a university server somewhere that would assume the costs. Google, I am quite sure, would be willing to shoulder the burden. The fact …
Michael Giberson Julio J. Rotemberg has a paper out about emotional reactions to prices and their policy implications. (“Behavioral aspects of price setting, and their policy implications.”) I think he is working on some interesting issues, but he comes up with such lousy “policy implications” at the end of the article that it ruined it …
Price Gouging Laws: Emotions, Economics, and Policy Read More »
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