| ID | 125613 |
| Title Proper | Assessing welfare impact of entry into power market |
| Language | ENG |
| Author | Cho, In-Koo ; Kim, Hyunsook |
| Publication | 2013. |
| Summary / Abstract (Note) | This paper calculates the welfare impact of a new entrant based on the location of entry in the Korean electricity market. We use two different models. One is the optimal fuel mix model to estimate the effect of a new entry in the long run. The other is the variable cost minimization model to assess the contribution of an existing installed private generator in the short run. A specific private generator, which has a cost advantage, saves a substantial amount of system-wide variable costs. We show that the right location for a new entrant can save power generation costs significantly, even if a new entrant does not have a cost advantage. |
| `In' analytical Note | Energy Policy Vol.61; Oct 2013: p.1046-1054 |
| Journal Source | Energy Policy Vol.61; Oct 2013: p.1046-1054 |
| Key Words | Entry ; Network Constraint ; Social Welfare |