Regulatory Changes and their Effects on the Performance of the Spanish Electricity Pool in 2004-2006

DOI:  https://doi.org/10.12804/revistas.urosario.edu.co/economia/a.6456

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Published: Feb 13, 2018
Issue: Vol. 20 No. 2 (2017): julio-diciembre
Section Articles


Keywords: Regulation , prices , panel co-integration , Spanish electricity pool. Regulación , precios , cointegración en panel , pool eléctrico español. Regulação , preços , cointegração em painel , pool elétrico espanhol.

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Authors

John Jairo García Rendón
Jhonny Moncada Mesa Escuela de Economía y Finanzas, Universidad eafit.
Abstract

This paper examines the relation between the Gap of the marginal price in the Spanish electricity market and other variables, the industrial organization of this market, and key regulatory changes affecting the market. We estimate a panel model with a large time series dimension in a small cross section of firms. We find that, due to high market concentration, the biggest firms are pivotal in the determination of market prices, distorting them and distancing them from competitive prices. The regulatory changes implemented did not have their intended effects, but rather created more distortions and perverse incentives in the market.

Author Biographies

John Jairo García Rendón

Escuela de Economía y Finanzas, Universidad eafit.

Jhonny Moncada Mesa, Escuela de Economía y Finanzas, Universidad eafit.

Escuela de Economía y Finanzas, Universidad eafit.
How to Cite
García Rendón, J. J., & Moncada Mesa, J. (2018). Regulatory Changes and their Effects on the Performance of the Spanish Electricity Pool in 2004-2006. Revista Economía Del Rosario, 20(2), 243–273. https://doi.org/10.12804/revistas.urosario.edu.co/economia/a.6456
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