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Economic Impact Of Electric Power Industry Deregulation On The State Of Washington: A General Equilibrium Analysis

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  • Coupal, Roger H.
  • Holland, David W.

Abstract

Electric power markets are being deregulated nationwide with different impacts depending upon current policies and historical circumstances from region to region. The Pacific Northwest, with its historic abundance of low-cost hydropower and dependence on public power, with experience deregulation and conditioned by this legacy. This analysis focuses on the economic impacts of deregulation on the State of Washington. A 31-sector computable general equilibrium model is used to evaluate the impacts of Washington's economy. In a most likely scenario, electricity exports expand to high-priced regions. The impact on the state economy is a reduction in gross state product as a result of high electricity prices. Returns to capital increase, but returns to private capital and to labor decrease because much of the financial gain accrues to public power.

Suggested Citation

  • Coupal, Roger H. & Holland, David W., 2002. "Economic Impact Of Electric Power Industry Deregulation On The State Of Washington: A General Equilibrium Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(1), pages 1-17, July.
  • Handle: RePEc:ags:jlaare:31085
    DOI: 10.22004/ag.econ.31085
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    Cited by:

    1. Akkemik, K. Ali & Oğuz, Fuat, 2011. "Regulation, efficiency and equilibrium: A general equilibrium analysis of liberalization in the Turkish electricity market," Energy, Elsevier, vol. 36(5), pages 3282-3292.
    2. Finnoff, David & Tschirhart, John, 2008. "Linking dynamic economic and ecological general equilibrium models," Resource and Energy Economics, Elsevier, vol. 30(2), pages 91-114, May.
    3. Keshab Raj Bhattarai, 2007. "Capital Accumulation, Growth and Redistribution: General Equilibrium Impacts of Energy and Pollution Taxes in UK," Energy and Environmental Modeling 2007 24000005, EcoMod.
    4. Eric L. Prentis, 2014. "Deregulation & Privatization: Texas Electric Power Market Evidence," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 5(2), pages 117-126.
    5. Erisa Dautaj Şenerdem & K. Ali Akkemik, 2020. "Evaluation of the reform in the Turkish electricity sector: a CGE analysis," International Journal of Economic Policy Studies, Springer, vol. 14(2), pages 389-419, August.
    6. McDermott, Shana M. & Finnoff, David C. & Shogren, Jason F., 2013. "The welfare impacts of an invasive species: Endogenous vs. exogenous price models," Ecological Economics, Elsevier, vol. 85(C), pages 43-49.
    7. Kosnik, Lea, 2008. "Consolidation and ownership trends of nonfederal hydropower generating assets, 1980-2003," Energy Economics, Elsevier, vol. 30(3), pages 715-731, May.
    8. Bhattacharyya, Ranajoy & Ganguly, Amrita, 2017. "Cross subsidy removal in electricity pricing in India," Energy Policy, Elsevier, vol. 100(C), pages 181-190.
    9. Sumei Chen & Lingyun He, 2013. "Deregulation or Governmental Intervention? A Counterfactual Perspective on China's Electricity Market Reform," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 21(4), pages 101-120, July.

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