IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v39y2011i1p187-199.html
   My bibliography  Save this article

Using the decentralized and liberalized electricity market microworld (LEMM) as an educational tool

Author

Listed:
  • Pasaoglu, Güzay

Abstract

Decentralized and liberalized electricity market involves a great deal of interdisciplinary concepts, including economic, commercial, environmental and technological issues. Consequently, the system is complicated. Accordingly, nowadays introductory courses focusing on the electricity market dynamics have been added to the curriculum at many universities. However, as the electricity market dynamics are complicated, it is not straightforward for students to understand. A teaching tool to assist students to better understand strategic behaviors in the market is thus in high demand. Due to these reasons, Liberalized Electricity Market Microworld (LEMM), incorporating a system dynamics based simulation model, is developed. The LEMM's contribution to the students learning and understanding of the decentralized and liberalized electricity market dynamics have been explored by organizing game sessions with the LEMM for totally 49 students who participated in "Energy Policy and Planning" course in Bogazici University. The findings obtained from the exploratory study reveal that the students improved their understanding of the liberalized and decentralized electricity market through the game session with the LEMM. In this paper, the general characteristics of the LEMM and the underlying model are presented, the microworlds', particularly the LEMM's potential contribution to learning and teaching is discussed.

Suggested Citation

  • Pasaoglu, Güzay, 2011. "Using the decentralized and liberalized electricity market microworld (LEMM) as an educational tool," Energy Policy, Elsevier, vol. 39(1), pages 187-199, January.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:1:p:187-199
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(10)00718-4
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Langley, Paul A. & Morecroft, John D. W., 2004. "Performance and learning in a simulation of oil industry dynamics," European Journal of Operational Research, Elsevier, vol. 155(3), pages 715-732, June.
    2. Senge, Peter M. & Sterman, John D., 1992. "Systems thinking and organizational learning: Acting locally and thinking globally in the organization of the future," European Journal of Operational Research, Elsevier, vol. 59(1), pages 137-150, May.
    3. Bakken, Bent & Gould, Janet & Kim, Daniel, 1992. "Experimentation in learning organizations: A management flight simulator approach," European Journal of Operational Research, Elsevier, vol. 59(1), pages 167-182, May.
    4. K Warren & P Langley, 1999. "The effective communication of system dynamics to improve insight and learning in management education," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(4), pages 396-404, April.
    5. Ford, Andrew, 1999. "Cycles in competitive electricity markets: a simulation study of the western United States," Energy Policy, Elsevier, vol. 27(11), pages 637-658, October.
    6. E R Larsen & D W Bunn, 1999. "Deregulation in electricity: understanding strategic and regulatory risk," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(4), pages 337-344, April.
    7. John D. Sterman, 1989. "Modeling Managerial Behavior: Misperceptions of Feedback in a Dynamic Decision Making Experiment," Management Science, INFORMS, vol. 35(3), pages 321-339, March.
    8. Don N. Kleinmuntz, 1985. "Cognitive Heuristics and Feedback in a Dynamic Decision Environment," Management Science, INFORMS, vol. 31(6), pages 680-702, June.
    9. Pasaoglu Kilanc, Guzay & Or, Ilhan, 2008. "A decision support tool for the analysis of pricing, investment and regulatory processes in a decentralized electricity market," Energy Policy, Elsevier, vol. 36(8), pages 3026-3034, August.
    10. Graham, Alan K. & Morecroft, John D. W. & Senge, Peter M. & Sterman, John D., 1992. "Model-supported case studies for management education," European Journal of Operational Research, Elsevier, vol. 59(1), pages 151-166, May.
    11. Bunn, Derek W. & Larsen, Erik R., 1992. "Sensitivity of reserve margin to factors influencing investment behaviour in the electricity market of England and Wales," Energy Policy, Elsevier, vol. 20(5), pages 420-429, May.
    12. Sterman, John D., 1989. "Misperceptions of feedback in dynamic decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 43(3), pages 301-335, June.
    13. Dyner, Isaac & Larsen, Erik & Franco, Carlos Jaime, 2009. "Games for electricity traders: Understanding risk in a deregulated industry," Energy Policy, Elsevier, vol. 37(2), pages 465-471, February.
    14. Dyner, Isaac & Larsen, Erik R., 2001. "From planning to strategy in the electricity industry," Energy Policy, Elsevier, vol. 29(13), pages 1145-1154, November.
    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. Teufel, Felix & Miller, Michael & Genoese, Massimo & Fichtner, Wolf, 2013. "Review of System Dynamics models for electricity market simulations," Working Paper Series in Production and Energy 2, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).

    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. Federico Cosenz & Guido Noto, 2016. "Applying System Dynamics Modelling to Strategic Management: A Literature Review," Systems Research and Behavioral Science, Wiley Blackwell, vol. 33(6), pages 703-741, November.
    2. Arango-Aramburo, Santiago & Bernal-García, Sebastián & Larsen, Erik R., 2021. "Renewable energy sources and the cycles in deregulated electricity markets," Energy, Elsevier, vol. 223(C).
    3. Teufel, Felix & Miller, Michael & Genoese, Massimo & Fichtner, Wolf, 2013. "Review of System Dynamics models for electricity market simulations," Working Paper Series in Production and Energy 2, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    4. Arango, Santiago & Castañeda, Jaime A. & Larsen, Erik R., 2013. "Mothballing in power markets: An experimental study," Energy Economics, Elsevier, vol. 36(C), pages 125-134.
    5. Álvarez-Uribe, Karla C. & Arango-Aramburo, Santiago & Larsen, Erik R., 2018. "Forward contracts in electricity markets and capacity investment: A simulation study," Utilities Policy, Elsevier, vol. 54(C), pages 1-10.
    6. Marrero-Trujillo, Verónica & Arias-Gaviria, Jessica & Arango-Aramburo, Santiago & Larsen, Erik R., 2023. "Gamification model for communicating and evaluating renewable energy planning," Utilities Policy, Elsevier, vol. 84(C).
    7. Torres, Juan Pablo & Kunc, Martin & O'Brien, Frances, 2017. "Supporting strategy using system dynamics," European Journal of Operational Research, Elsevier, vol. 260(3), pages 1081-1094.
    8. Langley, Paul A. & Morecroft, John D. W., 2004. "Performance and learning in a simulation of oil industry dynamics," European Journal of Operational Research, Elsevier, vol. 155(3), pages 715-732, June.
    9. Lane, David C., 1999. "Social theory and system dynamics practice," European Journal of Operational Research, Elsevier, vol. 113(3), pages 501-527, March.
    10. Gogi, Anastasia & Tako, Antuela A. & Robinson, Stewart, 2016. "An experimental investigation into the role of simulation models in generating insights," European Journal of Operational Research, Elsevier, vol. 249(3), pages 931-944.
    11. Paich, Mark. & Sterman, John., 1992. "Boom, bust and failures to learn in experimental markets," Working papers 3441-92., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    12. Hasani, Masoud & Hosseini, Seyed Hamid, 2011. "Dynamic assessment of capacity investment in electricity market considering complementary capacity mechanisms," Energy, Elsevier, vol. 36(1), pages 277-293.
    13. Hasani-Marzooni, Masoud & Hosseini, Seyed Hamid, 2011. "Dynamic model for market-based capacity investment decision considering stochastic characteristic of wind power," Renewable Energy, Elsevier, vol. 36(8), pages 2205-2219.
    14. Gencer, Busra & Larsen, Erik Reimer & van Ackere, Ann, 2020. "Understanding the coevolution of electricity markets and regulation," Energy Policy, Elsevier, vol. 143(C).
    15. Ibanez-Lopez, A.S. & Martinez-Val, J.M. & Moratilla-Soria, B.Y., 2017. "A dynamic simulation model for assessing the overall impact of incentive policies on power system reliability, costs and environment," Energy Policy, Elsevier, vol. 102(C), pages 170-188.
    16. Arias-Gaviria, Jessica & Arango-Aramburo, Santiago & Lamadrid L, Alberto J., 2022. "The effects of high penetrations of renewable energy sources in cycles for electricity markets: An experimental analysis," Energy Policy, Elsevier, vol. 166(C).
    17. Saysel, Ali Kerem & Hekimoğlu, Mustafa, 2013. "Exploring the options for carbon dioxide mitigation in Turkish electric power industry: System dynamics approach," Energy Policy, Elsevier, vol. 60(C), pages 675-686.
    18. Dyner, Isaac & Larsen, Erik & Franco, Carlos Jaime, 2009. "Games for electricity traders: Understanding risk in a deregulated industry," Energy Policy, Elsevier, vol. 37(2), pages 465-471, February.
    19. Arango, Santiago & Moxnes, Erling, 2012. "Commodity cycles, a function of market complexity? Extending the cobweb experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 321-334.
    20. Oliva, Rogelio, 2003. "Model calibration as a testing strategy for system dynamics models," European Journal of Operational Research, Elsevier, vol. 151(3), pages 552-568, December.

    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:eee:enepol:v:39:y:2011:i:1:p:187-199. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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.