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Learning from electricity markets: How to design a resilience strategy

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  • Fabra, Natalia
  • Motta, Massimo
  • Peitz, Martin

Abstract

Security of supply concerns are at the forefront of the public debate. The pandemic and post-pandemic times have demonstrated that preparing for global shocks requires the quick availability of some essential goods and services, including energy. Private incentives are typically insufficient for an economy to be prepared for rare events with large negative impacts. Instead, governments and preferably supranational institutions should implement mechanisms that make sure that prevention, detection and mitigation measures are taken. The economics of electricity capacity mechanisms provides valuable lessons for the provision of essential goods in such events, which need to be complemented with other elements aimed at mitigating the causes and impacts of potential crises.

Suggested Citation

  • Fabra, Natalia & Motta, Massimo & Peitz, Martin, 2022. "Learning from electricity markets: How to design a resilience strategy," Energy Policy, Elsevier, vol. 168(C).
    • Handle: RePEc:eee:enepol:v:168:y:2022:i:c:s030142152200341x
    DOI: 10.1016/j.enpol.2022.113116
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    References listed on IDEAS

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    Cited by:

    1. Ferriani, Fabrizio & Gazzani, Andrea, 2023. "The impact of the war in Ukraine on energy prices: Consequences for firms’ financial performance," International Economics, Elsevier, vol. 174(C), pages 221-230.
    2. Massimo Motta & Michele Polo, 2024. "Supply Chain Disruption and Precautionary Industrial Policy," Working Papers 1466, Barcelona School of Economics.
    3. Guinea, Laurentiu & Pérez, Rafaela & Ruiz, Jesús, 2024. "Asymmetric effects of financial volatility and volatility-of-volatility shocks on the energy mix," Finance Research Letters, Elsevier, vol. 61(C).
    4. Sai, Wei & Pan, Zehua & Liu, Siyu & Jiao, Zhenjun & Zhong, Zheng & Miao, Bin & Chan, Siew Hwa, 2023. "Event-driven forecasting of wholesale electricity price and frequency regulation price using machine learning algorithms," Applied Energy, Elsevier, vol. 352(C).
    5. Komorowska, Aleksandra & Kaszyński, Przemysław & Kamiński, Jacek, 2023. "Where does the capacity market money go? Lessons learned from Poland," Energy Policy, Elsevier, vol. 173(C).
    6. Lee, Chien-Chiang & Hussain, Jafar, 2023. "Energy sustainability under the COVID-19 outbreak: Electricity break-off policy to minimize electricity market crises," Energy Economics, Elsevier, vol. 125(C).

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