The California Electricity Market Debacle - On Liberalization Promises and Regulatory Failures

Kumkar, Lars

doi:10.2139/ssrn.315488

Abstract

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The California Electricity Market Debacle - On Liberalization Promises and Regulatory Failures

Lars Kumkar

University of Kiel - Research Dept. 3 (Regional and Infrastructure Economics)

February 2002

Kiel Working Paper No. 1097

Abstract:
This paper discusses the California electricity market debacle and asks which lessons could be drawn from the Californian experience. It analyzes the market developments and depicts the reasons for the market meltdown. It is shown that the present situation in California may be only the calm before the next storm. Essential questions concerning regulatory policy are unsettled, and the Californian policymakers at present do not seem to be able to resolve the problems largely stemming from their own past decisions. The paper however argues that for several reasons a similar fate does not threaten the European electricity markets at present.

Number of Pages in PDF File: 40

JEL Classification: K2, L2, L5, L9, Q4

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Date posted: June 19, 2002

Suggested Citation

Kumkar, Lars, The California Electricity Market Debacle - On Liberalization Promises and Regulatory Failures (February 2002). Kiel Working Paper No. 1097. Available at SSRN: http://ssrn.com/abstract=315488 or http://dx.doi.org/10.2139/ssrn.315488

Contact Information

Lars Kumkar (Contact Author)

University of Kiel - Research Dept. 3 (Regional and Infrastructure Economics) ( email )

P.O. Box 4309
D-24100
Kiel
Germany