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Agent-Based Simulations for Electricity Market Regulation Advice: Procedures and an Example

Author

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  • Weidlich Anke

    (Universität Mannheim, Dieter Schwarz Stiftungslehrstuhl fu¨ r ABWL und Wirtschaftsinformatik – E-Business und E-Government – Schloss, 68131 Mannheim, Germany)

  • Veit Daniel

    (Universität Mannheim, Dieter Schwarz Stiftungslehrstuhl für ABWL und Wirtschaftsinformatik – E-Business und E-Government – Schloss, 68131 Mannheim, Germany)

Abstract

This paper discusses the use of agent-based simulation models for regulatory advice in electricity market regulation. It briefly introduces the necessary procedures and the state-of-the-art of the methodology, and outlines its possible range of application. In a second part, the paper presents an agent-based simulation model developed by the authors. The model can be applied for analyzing different market designs and market structures in order to derive evidence for regulatory advice. This is exemplified through the analysis of two settlement rules in the balancing power market and of several divestiture scenarios of the German electricity sector.

Suggested Citation

  • Weidlich Anke & Veit Daniel, 2008. "Agent-Based Simulations for Electricity Market Regulation Advice: Procedures and an Example," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(2-3), pages 149-172, April.
    • Handle: RePEc:jns:jbstat:v:228:y:2008:i:2-3:p:149-172
    DOI: 10.1515/jbnst-2008-2-303
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    Cited by:

    1. Söderberg, Magnus & Yang, Yingkui, 2021. "Does published research influence policy outcomes? The case of regulated electricity networks in western Europe," Ratio Working Papers 346, The Ratio Institute.
    2. Markus Demary, 2011. "Transaction taxes, greed and risk aversion in an agent-based financial market model," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 6(1), pages 1-28, May.
    3. Veit, Daniel J. & Weidlich, Anke & Krafft, Jacob A., 2009. "An agent-based analysis of the German electricity market with transmission capacity constraints," Energy Policy, Elsevier, vol. 37(10), pages 4132-4144, October.
    4. Demary, Markus, 2010. "Transaction taxes and traders with heterogeneous investment horizons in an agent-based financial market model," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 4, pages 1-44.

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