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This study provides estimates of the price and Morishima substitution elasticities between energy and non-energy inputs in two Canadian energy-intensive manufacturing industries: Primary Metal and Cement. The elasticities are estimated using annual industry-level KLEM data (1961-2003) and relying on two flexible functional forms: the Translog and the Symmetric Generalized McFadden (SGM) cost functions. In addition to the point estimates, the confidence intervals of the elasticities are computed using Studentized bootstrap resampling techniques. For both industries, the estimation results suggest that capital, labour, material and energy are pairwise substitutes and that energy is the most substitutable input. However, the low magnitudes of the estimated elasticities do not seem to offer great flexibility to these industries to adapt to high increases in energy prices., 1. INTRODUCTION This study provides econometric estimates of substitution elasticities between energy and non-energy inputs, as well as their confidence intervals for selected Canadian manufacturing industries. Successive oil crises and [...]

A study was conducted to determine how responsive energy demand is to changes in energy prices, and to examine energy price shocks. Findings indicate that most of the price shocks since the 1970s have been driven by a combination of strong global demand for industrial commodities and expectation shifts that increase demand for crude oil.

Auctions serve as a primary pricing mechanism in various market segments of a deregulated power industry. In day-ahead (DA) energy markets, strategies such as uniform price, discriminatory, and second-price uniform auctions result in different price settlements and thus offer different levels of market power. In this paper, we present a nonzero sum stochastic game theoretic model and a reinforcement learning (RL)-based solution framework that allow assessment of market power in DA markets. Since there are no available methods to obtain exact analytical solutions of stochastic games, an RL-based approach is utilized, which offers a computationally viable tool to obtain approximate solutions. These solutions provide effective bidding strategies for the DA market participants. The market powers associated with the bidding strategies are calculated using well-known indexes like Herfindahl-Hirschmann index and Lerner index and two new indices, quantity modulated price index (QMPI) and revenue-based market power index (RMPI), which are developed in this paper. The proposed RL-based methodology is tested on a sample network. Index Terms--Auctions, average reward stochastic games, competitive Markov decision processes (CMDPs), deregulated electricity markets, market power, reinforcement learning (RL).

Introduction and summary The price and availability of energy has long been a critical concern to industrialized nations. In 2002, the industrialized nations as represented by the Organization for Economic [...]

Using information from United Kingdom's energy markets, models for residential and industrial sectors are developed to analyze the effects of liberalization and consumption differences on the energy prices. For the purpose, VAR and cointegration techniques are used.

A data of close to 2500 of ChinaEs energy intense enterprise is studied to understand the decline of energy intensity during 1977-1999, at the beginning of the economic reforms in China. The results showed that the rise in energy prices, research and development costs, changes in the industrial structure are the real reasons for the decline in intensity and energy use in China

The decision on technology adoption of manufacturing plants in response to government-aided energy audits is analyzed. The results indicate that the adoption rates are higher for projects with shorter paybacks, lower costs, bigger annual sales and greater energy conservation and this implies that subsidies are more effective at promoting energy efficient technologies than energy price increases.

A model shows that an increasing number of subsystems causes unity of price elasticity.

This is an analysis of the benefits distribution to consumers and firms due to price regulation in Spain's energy sector. The pro-consumer and pro-industry biases in the regulator's pricing policies are assessed by comparing alternate benchmarks with evolving energy prices.

There is a link between actual gross domestic product decreases and oil price increases.

In recent years a great deal of interest has been paid to the market-based pricing of electrical power. Electrical power contracts often contain embedded options, the valuations of which require a stochastic model for electricity prices. Successful stochastic models exist for modeling price variations in traditional commodities. Electricity is critically different from these commodities as it is difficult to store and, on short time scales, its price is highly inelastic. This has important implications for stochastic spot price models of electricity. Several stochastic models of electricity spot prices already exist. In these random models, price returns play a dominant role. In this paper, we lead a guided tour through existing electricity price data to motivate a new stochastic electricity price model different in that it directly models price. We apply the new model to the problem of pricing options on electrical power and discuss these preliminary results. Index Terms--Electricity pricing, energy pricing, forward prices, option pricing, power pricing, spot price model.

CALIFORNIA IS THE NATION'S LARGEST state, with a population of 34 million, and its economy produces more that all but a handful of nations on the planet. Thus, the electricity [...]

EARLY LAST DECADE, CONGRESS PASSED legislation that allows the deregulation of wholesale electricity production and prices in the United States. Under the legislation, states or regions that implement deregulation must [...]

In this paper, we define a system of advanced analytical methods and tools for secure and efficient operation of the power system in the emerging energy markets. For this purpose, we first define the concept of the Independent System Operator (ISO) as a 'generic' operator of an open-access transmission system. We then identify those functions of the ISO that are essential for the security and efficiency of power system operation and identify and describe a system of analytical tools that would enable the ISO to perform the bulk of these functions. Keywords: Utility Industry Restructuring, Independent System Operator, Power System Scheduling, Power System Dispatch, Power System Modeling, Security Controlled Optimization, Optimal Power Flow