The supply function model of the English electricity spot market is extended to include equilibrium in a contract market in the presence of entry threats, both of which have dramatic effects on the determination of equilibrium. The paper presents an analytically tractable model which can be...

The market power of the incumbents means that average pool prices are set by the costs of entry. Reforms which raise entry costs will be proposed and should be resisted. Reforms to capacity payments may have little effect on prices, but could affect system security. The values of Value of Lost...

If a monopolist is selling a commodity to consumers who could, if they chose, produce a close substitute, but only after incurring heavy capital investment (we have oil in mind), then the monopolist's optimal limit pricing strategy may involve randomizing prices even though stable prices would...

The paper assesses the distributional and efficiency/disincentive aspects of the Greek indirect tax system, which provides 60 percent of total tax revenue. The marginal welfare costs of broad commodity groups were computed to identify welfare-improving directions of reform. The disincentive...

The paper assesses the distributional and efficiency/disincentive aspects of the Greek indirect tax system, which provides 60% of total tax revenue. The marginal welfare costs of broad commodity groups were computed to identify welfare-improving directions of reform. The disincentive effects...

In this paper the environmental benefits of optimal tolls in eight English towns are estimated. Tolls are simulated using the SATURN model (Simulation and Assignment of Traffic to Urban Road Networks) with associated software to simulate the changes in traffic patterns resulting from cordon...

The paper conducts a social cost benefit analysis of the privatisation and restructuring of state-owned Central Electricity Generating Board whichn generated and transmitted all publicly supplied electricity in England and Wales until 1990.

Non-uniform indirect taxes treat equals and those unequal differently (horizontal inequity and vertical redistribution). Horizontal inequity is caused by taste differences among similar households, but some excises are designed to reflect social, not revealed, preferences. We apply two...

High fossil fuel prices have rekindled interest in nuclear power. This paper identifies specific nuclear characteristics making it unattractive to merchant generators in liberalised electricity markets, and argues that non-fossil fuel technologies have an overlooked ‘option value’ given fuel...