IDEAS home Printed from https://ideas.repec.org/a/rsk/journ2/2180818.html
   My bibliography  Save this article

Transmission congestion and market power: the case of the Norwegian electricity market

Author

Listed:
  • Faisal Mehmood Mirza and Olvar Bergland

Abstract

ABSTRACT We estimate the noncompetitive effects of transmission congestion in the Norwegian electricity market and test the hypothesis that opportunities for producers to exercise their market power increase when transmission constraints become binding. By specifying a structural model and using hourly data for southern Norway from February 2004 to April 2008, we find that, on average, prices have remained close to the competitive equilibrium, but producers more often exercise their market power during some specific hours when transmission constraint becomes binding. However, average markups above the marginal costs in any of these specific hours do not exceed 1%.

Suggested Citation

Handle: RePEc:rsk:journ2:2180818
as

Download full text from publisher

File URL: https://www.risk.net/system/files/import/protected/digital_assets/5406/jem_mirza_web.pdf
Download Restriction: no
---><---

More about this item

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:rsk:journ2:2180818. 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.

We have no bibliographic references for this item. You can help adding them by using 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: Thomas Paine (email available below). General contact details of provider: https://www.risk.net/journal-of-energy-markets .

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.