Natural Resource Economics Commons^™

Market Mechanisms And Price Volatility In New York Electricity Markets, Kimberly Blecich

Honors Theses

The past two decades have born witness to a cascade of new legislation and market design measures to restructure the United States’ electric power industry from price-setting regulatory agencies to competitive markets. Deregulation was intended to increase competition and improve market efficiency while preserving the reliability of the transmission system. Results have varied in success, and deregulation has invariably led to an increase in both the overall price level of electricity and volatility of those prices. Investigating these deregulation consequences is crucial for market operations and retrospective analyses of deployed mechanism outcomes. The objective of this study is to extend …