Environmental implications of market structure: Shale gas and electricity markets
We examine the environmental implications of market structure using the exogenous variation in the price of natural gas paid by U.S. electric power producers in the aftermath of the Shale Boom. We find that electric power producers were more responsive to fuel prices in vertically integrated markets...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Article |
| Language: | English |
| Published: |
Elsevier BV
2021
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| Online Access: | https://hdl.handle.net/1721.1/130160 |
| _version_ | 1811070414654275584 |
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| author | Knittel, Christopher Roland Metaxoglou, Konstantinos Trindade, André |
| author2 | Sloan School of Management |
| author_facet | Sloan School of Management Knittel, Christopher Roland Metaxoglou, Konstantinos Trindade, André |
| author_sort | Knittel, Christopher Roland |
| collection | MIT |
| description | We examine the environmental implications of market structure using the exogenous variation in the price of natural gas paid by U.S. electric power producers in the aftermath of the Shale Boom. We find that electric power producers were more responsive to fuel prices in vertically integrated markets than in restructured markets, and we explore the underlying factors driving this heterogeneity in responses. Although differences in the capacity of the most efficient gas power plants between the two market structures are the most important factor, we consider others. The heterogeneity in the response of power plant operators to fuel prices has material implications for carbon dioxide emissions. |
| first_indexed | 2024-09-23T08:35:36Z |
| format | Article |
| id | mit-1721.1/130160 |
| institution | Massachusetts Institute of Technology |
| language | English |
| last_indexed | 2024-09-23T08:35:36Z |
| publishDate | 2021 |
| publisher | Elsevier BV |
| record_format | dspace |
| spelling | mit-1721.1/1301602022-09-30T09:50:23Z Environmental implications of market structure: Shale gas and electricity markets Knittel, Christopher Roland Metaxoglou, Konstantinos Trindade, André Sloan School of Management We examine the environmental implications of market structure using the exogenous variation in the price of natural gas paid by U.S. electric power producers in the aftermath of the Shale Boom. We find that electric power producers were more responsive to fuel prices in vertically integrated markets than in restructured markets, and we explore the underlying factors driving this heterogeneity in responses. Although differences in the capacity of the most efficient gas power plants between the two market structures are the most important factor, we consider others. The heterogeneity in the response of power plant operators to fuel prices has material implications for carbon dioxide emissions. 2021-03-17T15:28:27Z 2021-03-17T15:28:27Z 2019-03 2018-11 2021-03-15T17:17:30Z Article http://purl.org/eprint/type/JournalArticle 0167-7187 https://hdl.handle.net/1721.1/130160 Knittel, Christopher R. et al. "Environmental implications of market structure: Shale gas and electricity markets." International Journal of Industrial Organization 63 (March 2019): 511-550 © 2019 Elsevier B.V. en http://dx.doi.org/10.1016/j.ijindorg.2018.12.004 International Journal of Industrial Organization Creative Commons Attribution-NonCommercial-NoDerivs License http://creativecommons.org/licenses/by-nc-nd/4.0/ application/pdf Elsevier BV Prof. Knittel |
| spellingShingle | Knittel, Christopher Roland Metaxoglou, Konstantinos Trindade, André Environmental implications of market structure: Shale gas and electricity markets |
| title | Environmental implications of market structure: Shale gas and electricity markets |
| title_full | Environmental implications of market structure: Shale gas and electricity markets |
| title_fullStr | Environmental implications of market structure: Shale gas and electricity markets |
| title_full_unstemmed | Environmental implications of market structure: Shale gas and electricity markets |
| title_short | Environmental implications of market structure: Shale gas and electricity markets |
| title_sort | environmental implications of market structure shale gas and electricity markets |
| url | https://hdl.handle.net/1721.1/130160 |
| work_keys_str_mv | AT knittelchristopherroland environmentalimplicationsofmarketstructureshalegasandelectricitymarkets AT metaxogloukonstantinos environmentalimplicationsofmarketstructureshalegasandelectricitymarkets AT trindadeandre environmentalimplicationsofmarketstructureshalegasandelectricitymarkets |