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Upstream producers that possess market power, sell forwards with a lengthy duration to regional electricity companies (REC). As part of the liberalization of the electricity market, RECs have been privatized and exposed to a possible bankruptcy threat if spot prices have fallen below their...
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uncertainty and hedging opportunities. Market transparency is modeled by means of the informational content of publicly observable … production depends on the firm's technology. Inparticular, more transparency may result in lower average output even though on … average more labor has been used in the production process. We also analyze the link between market transparency and the …
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This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for … commodity-exporting countries. The introduction of hedging instruments such as futures and options enhances domestic welfare …
Persistent link: https://www.econbiz.de/10014402269
This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for … commodity-exporting countries. The introduction of hedging instruments such as futures and options enhances domestic welfare …
Persistent link: https://www.econbiz.de/10012677894