IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v42y2021i5p247-282.html
   My bibliography  Save this article

Transmission Integration and the Market for Congestion Revenue Rights

Author

Listed:
  • Gaurav Doshi
  • Xiaodong Du

Abstract

Texas electricity market saw a recent integration of electricity transmission as a part of Competitive Renewable Energy Zones (CREZ). Exploiting the commissioning date of CREZ based transmission integration as an exogenous shock, we analyze the effect of transmission expansion on market clearing prices of Congestion Revenue Rights (CRR). Reduced form estimates suggest that excess transmission led to a lowering of CRR prices for contracts at all Times of Use. We find strong evidence of spatial, distributional, and firm specific heterogeneity. The paper shows that transmission expansion enhanced efficiency of the CRR market in terms of a spatial convergence in prices and a decrease in aggregate auction expenditure of approximately $260 million over a period of 4.5 years post CREZ.

Suggested Citation

  • Gaurav Doshi & Xiaodong Du, 2021. "Transmission Integration and the Market for Congestion Revenue Rights," The Energy Journal, , vol. 42(5), pages 247-282, September.
    • Handle: RePEc:sae:enejou:v:42:y:2021:i:5:p:247-282
    DOI: 10.5547/01956574.42.5.gdos
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.42.5.gdos
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.42.5.gdos?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. Ariaster B. Chimeli & Rodrigo R. Soares, 2017. "The Use of Violence in Illegal Markets: Evidence from Mahogany Trade in the Brazilian Amazon," American Economic Journal: Applied Economics, American Economic Association, vol. 9(4), pages 30-57, October.
    Full references (including those not matched with items on IDEAS)

    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. Eduardo Ferraz & Rodrigo Soares & Juan Vargas, 2022. "Unbundling the relationship between economic shocks and crime," Chapters, in: Paolo Buonanno & Paolo Vanin & Juan Vargas (ed.), A Modern Guide to the Economics of Crime, chapter 8, pages 184-204, Edward Elgar Publishing.
    2. Ceren Baysan & Marshall Burke & Felipe González & Solomon Hsiang & Edward Miguel, 2018. "Economic and Non-Economic Factors in Violence: Evidence from Organized Crime, Suicides and Climate in Mexico," NBER Working Papers 24897, National Bureau of Economic Research, Inc.
    3. Luiza M Karpavicius & Ariaster Chimeli, 2023. "Forest Protection and Human Health: The Case of Malaria in the Brazilian Amazon," Working Papers, Department of Economics 2023_08, University of São Paulo (FEA-USP), revised 26 Jul 2023.
    4. Rozo, Sandra V., 2020. "Unintended effects of illegal economic activities: Illegal gold mining and malaria," World Development, Elsevier, vol. 136(C).
    5. Mateus Dias & Luiz Felipe Fontes, 2024. "The Effects of a Large-Scale Mental Health Reform: Evidence from Brazil," American Economic Journal: Economic Policy, American Economic Association, vol. 16(3), pages 257-289, August.
    6. Soares, Rodrigo R. & Souza, Danilo, 2023. "Too Much of a Good Thing: Accelerated Growth and Crime," IZA Discussion Papers 16002, Institute of Labor Economics (IZA).
    7. Juan Camilo Castillo & Daniel Mejía & Pascual Restrepo, 2020. "Scarcity without Leviathan: The Violent Effects of Cocaine Supply Shortages in the Mexican Drug War," The Review of Economics and Statistics, MIT Press, vol. 102(2), pages 269-286, May.
    8. Gaurav Khanna & Carlos Medina & Anant Nyshadham & Jorge Tamayo & Nicolas Torres, 2023. "Formal Employment and Organised Crime: Regression Discontinuity Evidence from Colombia," The Economic Journal, Royal Economic Society, vol. 133(654), pages 2427-2448.
    9. Vicente Cardoso & Marcelo Resende, 2018. "Police and Crime: Further Evidence from a Quasi-Natural Experiment," CESifo Working Paper Series 7064, CESifo.
    10. Heid, Benedikt & Márquez-Ramos, Laura, 2023. "International environmental agreements and imperfect enforcement: Evidence from CITES," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    11. Eva-Maria Egger, 2022. "Internal Migration and Crime in Brazil," Economic Development and Cultural Change, University of Chicago Press, vol. 71(1), pages 223-259.
    12. Dias, Lucas Cardoso Corrêa & Cícero, Vinicius Curti, 2024. "Donkey business: trade, resource exploitation, crime and violence in a contestable market," OSF Preprints qreum, Center for Open Science.
    13. Burgess, Robin & Costa, Francisco J M & Olken, Ben, 2019. "The Brazilian Amazon’s Double Reversal of Fortune," SocArXiv 67xg5, Center for Open Science.
    14. Baysan, Ceren & Burke, Marshall & González, Felipe & Hsiang, Solomon & Miguel, Edward, 2019. "Non-economic factors in violence: Evidence from organized crime, suicides and climate in Mexico," Journal of Economic Behavior & Organization, Elsevier, vol. 168(C), pages 434-452.
    15. Daron Acemoglu & Giuseppe De Feo & Giacomo Davide De Luca, 2020. "Weak States: Causes and Consequences of the Sicilian Mafia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(2), pages 537-581.
    16. Beverelli, Cosimo & Ticku, Rohit, 2020. "Illicit trade and infectious diseases," WTO Staff Working Papers ERSD-2020-13, World Trade Organization (WTO), Economic Research and Statistics Division.
    17. Dorothy Kronick, 2020. "Profits and Violence in Illegal Markets: Evidence from Venezuela," Journal of Conflict Resolution, Peace Science Society (International), vol. 64(7-8), pages 1499-1523, August.
    18. Giacomo Battiston & Gianmarco Daniele & Marco Le Moglie & Paolo Pinotti, 2022. "Fueling Organized Crime: The Mexican War on Drugs and Oil Thefts," BAFFI CAREFIN Working Papers 22171, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    19. Tomás E. Murphy & Martín Rossi, 2017. "Following the Poppy Trail: Causes and Consequences of Mexican Drug Cartels," Working Papers 130, Universidad de San Andres, Departamento de Economia, revised Dec 2017.
    20. Ísis F. Lira & Laura de Carvalho Schiavon & Ricardo da Silva Freguglia, 2024. "Electronic monitoring of working time and labour market outcomes: Evidence from Brazil," Industrial Relations Journal, Wiley Blackwell, vol. 55(3), pages 205-221, May.

    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:sae:enejou:v:42:y:2021:i:5:p:247-282. 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: SAGE Publications (email available below). General contact details of provider: .

    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.