We analyse time-varying tolling in the stochastic bottleneck model with price-sensitive demand and uncertain capacity. We find that price sensitivity and its interplay with uncertainty have important implications for the effects of tolling on travel costs, welfare and consumers. We evaluate...

The marginal cost of electricity fluctuates hour-by-hour, yet retail customers typically face flat prices. Using data from all seven US wholesale markets and a new method to evaluate alternative rates set in advance that accounts for equilibrium price effects, we estimate efficiency gains...

Much of energy economics curricula involves the study of techno-economic aspects of energy systems with an increasing focus devoted to fostering an understanding of the interactions between innovative technologies and adaptive markets. As the interplay of these dynamics and their impacts on...

This study investigates airport congestion pricing and capacity investment with cost recovery consideration. Two countries’ airports are interlinked and served by each country’s home carrier. Our global welfare maximization shows that when per-passenger subsidies are not feasible under...