TY - JOUR
T1 - Review article. Electricity equilibrium models with stochastic demands
AU - Levin, Nissan
AU - Zahavi, Jacob
PY - 1989
Y1 - 1989
N2 - In this paper we explicitly account for demand uncertainty in partial equilibrium models of the electricity sector, extending previous work in this area to allow for diverse technologies and temporal fluctuations of demand. Two approaches are discussed. In the first, prices are set ex ante, prior to the resolution of demand uncertainty, to maximize the expected social benefits; in the second, prices are set ex post, after demand uncertainty is resolved, to clear the market rather than rationing or leaving excess capacity idle.
AB - In this paper we explicitly account for demand uncertainty in partial equilibrium models of the electricity sector, extending previous work in this area to allow for diverse technologies and temporal fluctuations of demand. Two approaches are discussed. In the first, prices are set ex ante, prior to the resolution of demand uncertainty, to maximize the expected social benefits; in the second, prices are set ex post, after demand uncertainty is resolved, to clear the market rather than rationing or leaving excess capacity idle.
KW - Electricity
KW - demand uncertainty
KW - equilibrium models
UR - http://www.scopus.com/inward/record.url?scp=45249129723&partnerID=8YFLogxK
U2 - 10.1016/0895-7177(89)90160-X
DO - 10.1016/0895-7177(89)90160-X
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AN - SCOPUS:45249129723
SN - 0895-7177
VL - 12
SP - 911
JO - Mathematical and Computer Modelling
JF - Mathematical and Computer Modelling
IS - 7
ER -