Skip to main content
SpringerLink
Log in

Will California come to Europe? A Numerical Simulation

  • Published:
Journal of Industry, Competition and Trade Aims and scope Submit manuscript

Abstract

We discuss under what conditions California’s electricity crisis may happen in Western European countries, taking The Netherlands as an example. We use a simulation model containing the electricity generation and distribution sector. We simulate exogenous events, such as a sudden shift in demand levels, a sharp rise in world fuel prices and a cutback in foreign supply. We use the model to investigate whether supply remains secured under different regulatory regimes. Our results suggest a trade-off between controlled prices and security of supply. Europe’s electricity supply security is vulnerable if prices are not allowed to reflect scarcity. If prices are unrestricted however, they will reach oligopoly levels.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • De Bijl, P., Competition and regulation in Telecommunications Markets. CPB: The Hague, 2000.

    Google Scholar 

  • ECN, Nationale Energie verkenningen 1995–2020, www.ecn.nl/unit_bs/nev/ (in Dutch), 1998.

  • Harrison, M. and Kline, J.J., “Quantity competition with access fee,” International Journal of Industrial Organization, vol. 19, pp. 345–373, 2001.

    Google Scholar 

  • Kingma, D., Lijesen, M.G., and Mulder, M., NATGAS, A model of the European natural gas market, CPB discussion paper, forthcoming, 2002.

  • Laffont, J.J., Rey, P., and Tirole, J., “Network competition: overview and nondiscriminatory pricing,” Rand. Journal of Economics, vol. 29no. 1, pp. 1–37, 1998.

    Google Scholar 

  • Lijesen, M.G., End user prices in liberalised energy markets, CPB discussion paper, forthcoming, 2002.

  • Mannaerts, H.D., Lijesen, M.G., and Mulder, M., ELMAR, A model of the European electricity market, CPB discussion paper, forthcoming, 2002.

  • Van Gent, C., Elektriciteitsmarkt in Nederland robuust (Electricity market in The Netherlands robust), Het financieele dagblad February 8, 2001 (in Dutch).

Download references

Author information

Authors and Affiliations

  1. Department of energy and raw materials, CPB, Netherlands Bureau for Economic Policy Research, USA

    Mark Lijesen

  2. Department of energy and raw materials, CPB, Netherlands Bureau for Economic Policy Research, USA

    Hein Mannaerts & Machiel Mulder

Authors
  1. Mark Lijesen
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Hein Mannaerts
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Machiel Mulder
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Lijesen, M., Mannaerts, H. & Mulder, M. Will California come to Europe? A Numerical Simulation. Journal of Industry, Competition and Trade 2, 173–188 (2002). https://doi.org/10.1023/A:1020839223698

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1020839223698

Search

Navigation