IDEAS home Printed from https://ideas.repec.org/a/cdh/commen/261.html
   My bibliography  Save this article

Power Failure: Addressing the Causes of Underinvestment, Inefficiency and Governance Problems in Ontario's Electricity Sector

Author

Listed:
  • Michael Wyman

Abstract

Economic and policy problems plague Ontario’s electricity sector six years after the government’s initial attempt at market liberalization in 2002. Several changes of direction later, the electricity sector has a hybrid structure of regulation and market forces, with a central procurement role assigned to the Ontario Power Authority (OPA). This paper questions whether a central procurement approach represents the best means of achieving a well-functioning electricity sector and, if not, what better approach exists.

Suggested Citation

  • Michael Wyman, 2008. "Power Failure: Addressing the Causes of Underinvestment, Inefficiency and Governance Problems in Ontario's Electricity Sector," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 261, May.
    • Handle: RePEc:cdh:commen:261
    as

    Download full text from publisher

    File URL: https://www.cdhowe.org/public-policy-research/power-failure-addressing-causes-underinvestment-inefficiency-and-governance-problems-ontario%E2%80%99s
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jaccard,Mark, 2006. "Sustainable Fossil Fuels," Cambridge Books, Cambridge University Press, number 9780521679794, October.
    2. Green, R., 1996. "The Electricity Contract Market," Cambridge Working Papers in Economics 9616, Faculty of Economics, University of Cambridge.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Wyman, 2014. "Rethinking Ontario’s Electricity System with Consumers in Mind," e-briefs 182, C.D. Howe Institute.
    2. Rosenbloom, Daniel & Meadowcroft, James, 2014. "The journey towards decarbonization: Exploring socio-technical transitions in the electricity sector in the province of Ontario (1885–2013) and potential low-carbon pathways," Energy Policy, Elsevier, vol. 65(C), pages 670-679.
    3. Arthur J. Cockfield, 2008. "Finding Silver Linings in the Storm: An Evaluation of Recent Canada-US Crossborder Developments," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 272, September.
    4. Peter W. Hogg, 2008. "A Question of Parliamentary power: Criminal Law and the Control of Greenhouse Gas Emissions," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 114, August.
    5. Holburn, Guy L.F., 2012. "Assessing and managing regulatory risk in renewable energy: Contrasts between Canada and the United States," Energy Policy, Elsevier, vol. 45(C), pages 654-665.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luigi Bottecchia & Pietro Lubello & Pietro Zambelli & Carlo Carcasci & Lukas Kranzl, 2021. "The Potential of Simulating Energy Systems: The Multi Energy Systems Simulator Model," Energies, MDPI, vol. 14(18), pages 1-27, September.
    2. Frank A. Wolak, 2001. "An Empirical Analysis of the Impact of Hedge Contracts on Bidding Behavior," NBER Working Papers 8212, National Bureau of Economic Research, Inc.
    3. repec:bla:ausecr:v:41:y:2008:i:4:p:349-370 is not listed on IDEAS
    4. Peter Cramton & Robert Wilson, 1998. "A Review of ISO New England's Proposed Market Rules," Papers of Peter Cramton 98mdi, University of Maryland, Department of Economics - Peter Cramton.
    5. Hugh Rudnick & Juan-Pablo Montero, 2002. "Second Generation Electricity Reforms in Latin America and the California Paradigm," Journal of Industry, Competition and Trade, Springer, vol. 2(1), pages 159-172, June.
    6. Gasmi, Farid & Oviedo, Juan Daniel, 2009. "Investment in Transport Infrastructure, and Gas-Gas Competition," TSE Working Papers 09-121, Toulouse School of Economics (TSE).
    7. Jordi Brandts & Paul Pezanis‐Christou & Arthur Schram, 2008. "Competition with forward contracts: a laboratory analysis motivated by electricity market design," Economic Journal, Royal Economic Society, vol. 118(525), pages 192-214, January.
    8. Paweł Modrzyński & Robert Karaszewski, 2022. "Urban Energy Management—A Systematic Literature Review," Energies, MDPI, vol. 15(21), pages 1-17, October.
    9. Newbery, David M., 1997. "Privatisation and liberalisation of network utilities," European Economic Review, Elsevier, vol. 41(3-5), pages 357-383, April.
    10. Hussein M. K. Al-Masri & Abed A. Al-Sharqi & Sharaf K. Magableh & Ali Q. Al-Shetwi & Maher G. M. Abdolrasol & Taha Selim Ustun, 2022. "Optimal Allocation of a Hybrid Photovoltaic Biogas Energy System Using Multi-Objective Feasibility Enhanced Particle Swarm Algorithm," Sustainability, MDPI, vol. 14(2), pages 1-20, January.
    11. David M. Newbery & Thomas Greve, 2013. "The Strategic Robustness of Mark-up Equilibria," Cambridge Working Papers in Economics 1341, Faculty of Economics, University of Cambridge.
    12. Nathalie Spittler & Ganna Gladkykh & Arnaud Diemer & Brynhildur Davidsdottir, 2019. "Understanding the Current Energy Paradigm and Energy System Models for More Sustainable Energy System Development," Energies, MDPI, vol. 12(8), pages 1-22, April.
    13. Sandro Sapio & Agnieszka Wylomanska, 2008. "The impact of forward trading on the spot power price volatility with Cournot competition," HSC Research Reports HSC/08/02, Hugo Steinhaus Center, Wroclaw University of Technology.
    14. Martin Kreuzberg & Christoph Riechmann, 1999. "Deregulation and Regulation in the European Power Market," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 68(4), pages 566-578.
    15. Alhamwi, Alaa & Medjroubi, Wided & Vogt, Thomas & Agert, Carsten, 2017. "GIS-based urban energy systems models and tools: Introducing a model for the optimisation of flexibilisation technologies in urban areas," Applied Energy, Elsevier, vol. 191(C), pages 1-9.
    16. Frank Wolak, 2000. "An Empirical Analysis of the Impact of Hedge Contracts on Bidding Behavior in a Competitive Electricity Market," International Economic Journal, Taylor & Francis Journals, vol. 14(2), pages 1-39.
    17. Bower, John & Bunn, Derek, 2001. "Experimental analysis of the efficiency of uniform-price versus discriminatory auctions in the England and Wales electricity market," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 561-592, March.
    18. Kennedy, David, 2002. "Regulatory reform and market development in power sectors of transition economies: the case of Kazakhstan," Energy Policy, Elsevier, vol. 30(3), pages 219-233, February.
    19. Graeme S. Hawker & Keith R. W. Bell, 2020. "Making energy system models useful: Good practice in the modelling of multiple vectors," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 9(1), January.
    20. Lowrey, Craig, 1997. "The pool and forward contracts in the UK electricity supply industry," Energy Policy, Elsevier, vol. 25(4), pages 413-423, March.
    21. Oskari Lähdeaho & Olli-Pekka Hilmola & Riitta Kajatkari, 2020. "Maritime supply chain sustainability: South-East Finland case study," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-15, December.

    More about this item

    Keywords

    governance and public institutions;

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdh:commen:261. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kristine Gray (email available below). General contact details of provider: https://edirc.repec.org/data/cdhowca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.