Modeling competition and investment in liberalized electricity markets [Elektronische Ressource] / von Hannes Weigt

Modeling Competition and Investment in Liberalized Electricity Markets Dissertation Zur Erlangung des akademischen Grades Doctor rerum politicarum (Dr. rer. pol.) vorgelegt an der Fakultät Wirtschaftswissenschaften der Technischen Universität Dresden am 29. Mai, 2009 von Dipl.-Wi.-Ing. Hannes Weigt (geb. 20. Mai, 1981) Verteidigt am 14. Juli, 2009 Betreuender Hochschullehrer (1. Gutachter): 2. Gutachter: Prof. Dr. Christian von Hirschhausen Prof. Dr. Marcel Thum DREWAG-Stiftungslehrstuhl für Energiewirtschaft Lehrstuhl Finanzwissenschaft Technische Universität Dresden Technische Universität Dresden Abstract In this thesis current questions regarding the functionality of liberalized electricity markets are studied addressing different topics of interest in two main directions: market power and competition policy on electricity wholesale markets, and network investments and incentive regulation. The former is studied based on the case of the German electricity market with respect to ex-post market power analysis and ex-ante remedy development. First an optimization model is designed to obtain the competitive benchmark which can be compared to the observed market outcomes between 2004 and 2006. In a second step the horizontal breaking up of dominant firms (divestiture) is simulated applying equilibrium techniques (the classical Cournot approach and the Supply Function Equilibrium approach).