Assessing the efficiency of US electricity markets
- Ismael E.
- Christopher L.
- Achla
The recent California's energy crisis has raised doubts about the benefits of energy deregulation. While it is true that the California electricity market is in turmoil, other electricity markets like the Pennsylvania-New Jersey-Maryland (PJM) are doing fine. This paper assesses the mark of efficiency reached by the electricity markets in California, New York, and PJM. It also compares the degree of efficiency across markets (forward vs. real time) and across time. In terms of market efficiency no significant differences between the California and PJM electricity markets were discovered in the year of California's energy crisis (2000). This research suggests that differences in price behavior between these two markets during 2000 did not arise from differences in efficiency. According to our analysis and measure of efficiency, PJM and California electricity markets are more efficient than the New York market. Also, as these markets become more mature over time, their efficiency goes up. We also found evidence that multi-settlement scheduling system leads to higher efficiency.
- Research Organization:
- Los Alamos National Laboratory (LANL), Los Alamos, NM (United States)
- Sponsoring Organization:
- USDOE
- OSTI ID:
- 975678
- Report Number(s):
- LA-UR-01-4385; TRN: US201008%%258
- Resource Relation:
- Journal Volume: 11; Journal Issue: 2; Conference: "Submitted to: Symposium 2001: Highlighting Student and Postdoctoral Research, Santa Fe, NM August 5-6"
- Country of Publication:
- United States
- Language:
- English
Similar Records
Review of the Structure of Bulk Power Markets Grid of the Future White Paper
Variability in Wind Energy Generation across the Contiguous United States