We consider an economy in which competitive firms use three technologies for electricity production: pollutive fossils, intermittent renewables whose availability varies continuously over time, and storage. A Pigouvian tax implements the first-best solution. This is also the case for an...

We consider an economy in which competitive firms use three technologies for electricity production: pollutive fossils, intermittent renewables like wind or solar, and storage. We determine optimal subsidies for renewables and storage capacities when carbon pricing is imperfect. This policy is...

This work puts forward a demand response model based on both prices and incentives, which strengthens the accuracy of the demand response approach influencing the reduction or increase of the customer demand. This possibility arises from offering customers real-time and time-of-use pricing if...

A.A. Walters derived a traffic flow function, and advocated toll to cure congestion. He wanted to save lives and monies, time is money, in congestion. NYC and Hong Kong have been practicing his policy for years, but surviving drivers are still tortured by congestion. Walters’ intention is...

Electric Vehicles (EV) present a unique challenge to electric power system (EPS) operations because of the potential magnitude and timing of load increases due to EV charging. Time-of-Use (TOU) electricity pricing is an established way to reduce peak system loads. It is effective at shifting the...

In the face of capacity disruptions (due, for example, to traffic incidents or poor weather), information provision and congestion pricing are alternative alleviating policies. A state-dependent toll equals the state-dependent marginal external cost (MEC), which is higher if traffic condition is...