IDEAS home Printed from https://ideas.repec.org/a/diw/diwvjh/82-3-11.html
   My bibliography  Save this article

Der Strommarkt als soziale Institution: eine erweiterte Perspektive auf die deutsche Diskussion um Kapazitätsmechanismen

Author

Listed:
  • Saskia Ellenbeck
  • Peter Schmidt
  • Antonella Battaglini
  • Johan Lilliestam

Abstract

The fear that the current market design could lead to underinvestment in flexible capacity in the German power market is often countered with proposals for capacity markets to ensure the security of future electricity supply. This article challenges this narrow view of an unambiguous logical connection between a reformation of the power market design and a change in investment behavior and develops a broader perspective for the interpretation of the current market outcome. We create a theoretical framework based on insights from institutional economics and the new economic sociology. We find that in addition to the formal market design, the material opportunities, the coupling of the electricity sector with related systems, expectations about the future market development, and strategic actor behavior may have an influence on the investment decisions in the power market. The analysis indicates that investment in flexible capacity can be possible even within the current market design, if the material, financial, and/or institutional opportunities and expectations change. Ausgangspunkt für Forderungen nach einer Einführung von Kapazitätsmechanismen im deutschen Strommarkt ist die Beobachtung, dass das gegenwärtige Investitionsverhalten der Marktakteure zu einem unzureichenden Niveau der Stromversorgungssicherheit führen könnte. In dem vorliegenden Beitrag wird die enge logische Verknüpfung zwischen Investitionstätigkeit und einer Änderung des formellen Marktdesigns hinterfragt und eine erweiterte Perspektive für die Interpretation des gegenwärtigen Marktergebnisses erarbeitet. Den theoretischen Rahmen dafür bieten die Institutionenökonomie und die Neue Wirtschaftssoziologie. Neben dem Strommarktdesign werden als weitere Einflussfaktoren auf das Verhalten der Marktakteure die materiellen Opportunitäten im Inland und in gekoppelten Strommärkten, die Erwartungen über künftige Marktentwicklungen und das strategische Verhalten der Marktakteure identifiziert. Unsere Analyse zeigt, dass Investitionen in flexible Kapazitäten durchaus auch innerhalb des bestehenden Marktdesigns bei einer Veränderung der materiellen, finanziellen und/oder institutionellen Opportunitäten und Erwartungen angestoßen werden könnten.

Suggested Citation

  • Saskia Ellenbeck & Peter Schmidt & Antonella Battaglini & Johan Lilliestam, 2013. "Der Strommarkt als soziale Institution: eine erweiterte Perspektive auf die deutsche Diskussion um Kapazitätsmechanismen," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 82(3), pages 171-182.
    • Handle: RePEc:diw:diwvjh:82-3-11
    DOI: 10.3790/vjh.82.3.171
    as

    Download full text from publisher

    File URL: https://doi.org/10.3790/vjh.82.3.171
    Download Restriction: no
    File URL: https://libkey.io/10.3790/vjh.82.3.171?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Canós, José H. & Borges, Marcos R.S. & Penadés, Ma Carmen & Gómez, Abel & Llavador, Manuel, 2013. "Improving emergency plans management with SAGA," Technological Forecasting and Social Change, Elsevier, vol. 80(9), pages 1868-1876.
    2. Agarwal, Vikas & Ma, Linlin, 2013. "Managerial multitasking in the mutual fund industry," CFR Working Papers 13-10, University of Cologne, Centre for Financial Research (CFR).
    3. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    4. Christian von Hirschhausen & Claudia Kemfert & Friedrich Kunz & Roman Mendelevitch, 2013. "Europäische Stromerzeugung nach 2020: Beitrag erneuerbarer Energien nicht unterschätzen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 80(29), pages 3-13.
    5. Samuel H. Cox & Yijia Lin & Ruilin Tian & Luis F. Zuluaga, 2013. "Mortality Portfolio Risk Management," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 80(4), pages 853-890, December.
    6. Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
    7. Beckert, Jens, 2007. "The social order of markets," MPIfG Discussion Paper 07/15, Max Planck Institute for the Study of Societies.
    8. Tang, Wenzhe & Li, Zhuoyu & Qiang, Maoshan & Wang, Shuli & Lu, Youmei, 2013. "Risk management of hydropower development in China," Energy, Elsevier, vol. 60(C), pages 316-324.
    9. Singh Chauhan, Bhagirath (ed.), 2013. "Management strategies for weedy rice in Asia," IRRI Books, International Rice Research Institute (IRRI), number 164498.
    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. Saskia Ellenbeck & Andreas Beneking & Andrzej Ceglarz & Peter Schmidt & Antonella Battaglini, 2015. "Security of Supply in European Electricity Markets—Determinants of Investment Decisions and the European Energy Union," Energies, MDPI, vol. 8(6), pages 1-19, June.

    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. Saskia Ellenbeck & Andreas Beneking & Andrzej Ceglarz & Peter Schmidt & Antonella Battaglini, 2015. "Security of Supply in European Electricity Markets—Determinants of Investment Decisions and the European Energy Union," Energies, MDPI, vol. 8(6), pages 1-19, June.
    2. Lu, Ren & Ruan, Min & Reve, Torger, 2016. "Cluster and co-located cluster effects: An empirical study of six Chinese city regions," Research Policy, Elsevier, vol. 45(10), pages 1984-1995.
    3. Heiman, Amir & Gordon, Ben & Zilberman, David, 2019. "Food beliefs and food supply chains: The impact of religion and religiosity in Israel," Food Policy, Elsevier, vol. 83(C), pages 363-369.
    4. López-Bayón, Susana & González-Díaz, Manuel & Solís-Rodríguez, Vanesa & Fernández-Barcala, Marta, 2018. "Governance decisions in the supply chain and quality performance: The synergistic effect of geographical indications and ownership structure," International Journal of Production Economics, Elsevier, vol. 197(C), pages 1-12.
    5. Mihael A. Jeklic, 2023. "Can you trust your lawyer's call? Legal advisers exhibit myside bias resistant to debiasing interventions," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 20(2), pages 409-433, June.
    6. Krickx, Guido A., 1995. "Vertical integration in the computer mainframe industry: A transaction cost interpretation," Journal of Economic Behavior & Organization, Elsevier, vol. 26(1), pages 75-91, January.
    7. Brown, Philip & Roper, Simon, 2017. "Innovation and networks in New Zealand farming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), July.
    8. Kong, Dongmin & Pan, Yue & Tian, Gary Gang & Zhang, Pengdong, 2020. "CEOs' hometown connections and access to trade credit: Evidence from China," Journal of Corporate Finance, Elsevier, vol. 62(C).
    9. Schmid, Andreas, 2007. "Incentive Compatibility and Efficiency in the contractual Insurer-Provider Relationship: Economic Theory and practical Implications: The Case of North Carolina," MPRA Paper 23311, University Library of Munich, Germany, revised 2008.
    10. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    11. Cici, Gjergji & Gehde-Trapp, Monika & Göricke, Marc-André & Kempf, Alexander, 2014. "What they did in their previous life: The investment value of mutual fund managers' experience outside the financial sector," CFR Working Papers 14-11, University of Cologne, Centre for Financial Research (CFR).
    12. Susan Velasco Portillo, 2015. "El agotamiento del régimen fordista boliviano y la financiarización de YPFB," Revista Lebret, Universidad Santo Tomás - Bucaramanga, vol. 7, pages 308-325, December.
    13. Franzini, Maurizio & Raitano, Michele, 2019. "Earnings inequality and workers’ skills in Italy," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 215-224.
    14. Andersson, Thomas, 1991. "Approaches to Partnerships Causing Asymmetries Between Japan and the West," Working Paper Series 320, Research Institute of Industrial Economics, revised Feb 1992.
    15. Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2017. "Social Network Structure and The Trade-Off Between Social Utility and Economic Performance," KAE Working Papers 2017-026, Warsaw School of Economics, Collegium of Economic Analysis.
    16. Paskalev, Zdravko & Yildirim, Huseyin, 2017. "A theory of outsourced fundraising: Why dollars turn into “Pennies for Charity”," Journal of Economic Behavior & Organization, Elsevier, vol. 137(C), pages 1-18.
    17. Schneider, Christian O. & Bremen, Philipp & Schönsleben, Paul & Alard, Robert, 2013. "Transaction cost economics in global sourcing: Assessing regional differences and implications for performance," International Journal of Production Economics, Elsevier, vol. 141(1), pages 243-254.
    18. Steven F. Koch, 2005. "Love and Addiction: The Importance of Commitment," Working Papers 200516, University of Pretoria, Department of Economics.
    19. Jeonghwa Cha & Kyungbo Park & Hangook Kim & Jongyi Hong, 2023. "Crisis Index Prediction Based on Momentum Theory and Earnings Downside Risk Theory: Focusing on South Korea’s Energy Industry," Energies, MDPI, vol. 16(5), pages 1-20, February.
    20. Ian Carrillo & David Pellow, 2021. "Critical environmental justice and the nature of the firm," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(3), pages 815-826, September.

    More about this item

    Keywords

    Capacity mechanism; energy-only market design; social institutions; expectations;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

    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:diw:diwvjh:82-3-11. 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: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.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.