Developing a simulator for the Greek electricity market

Following the liberalization of the Greek electricity market, the Greek Regulatory Authority for Energy (RAE) undertook the design and implementation of a simulator for the wholesale market and its interactions with the Natural Gas Transportation System. The simulator consists of several interacting modules representing all key market operations and dynamics including (i) day-ahead scheduling based on bids of market participants, (ii) natural gas system constraints, (iii) unplanned variability of loads and available capacity driven either by uncertain stochastic outcomes or deliberate participant schedule deviations, (iv) real time dispatch, and (v) financial settlement of day ahead and real time schedule differences. The modules are integrated into one software package capable of simulating all market dynamics, deliberate or probabilistic, and their interactions across all relevant time scales. The intended use of the simulator is to elaborate on and allow RAE to investigate the impact of participant decision strategies on market outcomes. The ultimate purpose is to evaluate the effectiveness of Market Rules, whether existing or contemplated, in providing incentives for competitive behaviour and in discouraging gaming and market manipulation. This paper describes the development of the simulator relative to the current Greek Electricity Market Design and key contemplated revisions.simulation; regulatory policy; electricity markets; market design;

Trade liberalization and inter-provincial dumping in a spatial equilibrium model: the case of the Canadian dairy industry

The paper introduces imperfect competition in a spatial equilibrium model of provincial dairy markets to analyze the welfare impacts of trade liberalization. Our model accounts for output restrictions at the farm level and the potential presence of market power at the processing level. Our model builds on the reciprocal dumping model of Brander and Krugman (1983) because processing firms from different provinces compete with one another in several provinces. Simulations reveal that welfare in the Canadian dairy sector could increase by as much as $1 billion per year if aggressive tariff cuts were made while moderate liberalization plans would yield annual gains of$234.5 million. Even large producing provinces like Quebec and Ontario gain from trade liberalization. In comparison, a perfect competition model yields more modest welfare gains in the range of $15.6 million and$34.5 million. Finally, we show that the switch in the sign of the transport cost-welfare relation identified by Brander and Krugman (1983) occurs at transport costs that are too high to be policy-relevant.Supply management, Canadian dairy sector, imperfect competition, bilateral dumping

Drug Management Reviews in District Drug Management Unit and General Hospital

Drug is one of the essential elements in healthcare that should be effectively and efficiently managed. Following the decentralization in 2001 in Indonesia, drug management has changed in district drug management units and also in District General Hospitals. Certainly this condition influences the sustainability of drug access in primary health care such as in Community Health Center and District General Hospital, especially in drug financing policy. A cross sectional descriptive study to obtain information on drug management in public healthcare in district had been carried out between July and December 2006 in 10 District Public Drug Management Units from 10 district health offices and 9 district general hospitals as samples. Data were collected by interviewing heads of Drug Section in District Health Offices and heads of Hospital Pharmacies using structured questionnaires and observing drug storage in District Drug Management Units, Community Health Centers, and Hospital Pharmacies. Results of the study show that drug planning in District Health Offices and General Hospitals did not meet the basic real need in some districts nor District Hospitals. The minimum health service standards had not been achieved yet. Furthermore, drug procurement, storage and recording as well as reporting was not good enough either, such as shown by the existence of expired drugs. Lead time for drug delivery to community health centers in some districts was longer than the average of lead time in the past 3 years

Models for the optimization of promotion campaigns: exact and heuristic algorithms.

This paper presents an optimization model for the selection of sets of clients that will receive an offer for one or more products during a promotion campaign. The complexity of the problem makes it very difficult to produce optimal solutions using standard optimization methods. We propose an alternative set covering formulation and develop a branch-and-price algorithm to solve it. We also describe five heuristics to approximate an optimal solution. Two of these heuristics are algorithms based on restricted versions of the basic formulation, the third is a successive exact k-item knapsack procedure. A heuristic inspired by the Next-Product-To-Buy model and a depth-first branch-and-price heuristic are also presented. Finally, we perform extensive computational experiments for the two formulations as well as for the five heuristics.Promotion campaign; Minimum quantity commitment; Integer programming; Branch-and-price algorithm; Non-approximability; Heuristics; Business-to-business; Business-to-consumer;

THE URUGUAY ROUND AGREEMENT ON AGRICULTURE: AN EVALUATION

Contact for this paper: Laura Bipes/University of Minnesota/Department of Applied Economics/ 1994 Buford Avenue./ St. Paul, MN 55108 USA. From the start, agriculture played a central role in the Uruguay Round of GATT trade negotiations. The Punta del Este Declaration called for a solution to the problems facing agricultural trade through modified trade rules and an agreement to lower protection levels. It was recognized that such an improvement implied negotiations on the national farm policies as well as just trade policies. The time that it took to reach agreement reflected the political sensitivity and technical complexity of this task. The Agreement embodied in the Final Act of the Uruguay Round breaks new ground for agriculture, and takes a big step towards placing this sector of world trade under rules more consistent with those in operation in other areas. However, the degree of liberalization of markets is modest, and much remains to be done in future rounds of negotiations. The most far-reaching element in the Agreement is a change in the rules regarding market access. With very few exceptions, all participating countries have agreed to convert all existing non-tariff barriers (along with unbound tariffs) into bound duties and not to introduce new non-tariff measures. Negotiations agreed to reduce these new bound tariffs, as well as tariffs already bound earlier, according to Schedules included as a part of the Agreement. "Tariffication" will impose changes in import policies for a number of countries. Canada will replace import quotas for dairy and poultry products with tariffs, initially at a high level. The European Union will replace its variable levy with tariffs, though a maximum duty-paid price for cereals has been negotiated which puts a limit on the tariff charged. Latin American countries have generally engaged in tariffication in recent years in advance of the Uruguay Round Agreement: for these, and other countries their tariffs will now be bound. The US will forgo the use of Section 22 import quotas and the negotiation of voluntary export restraint agreements with beef suppliers, but the impact on these markets is likely to be small. Japan and Korea have been allowed to delay tariffication in the case of rice for the next few years. The Agreement provides in cases of tariffication for "minimum access opportunities", to guard against the impact of high initial tariff rates. This will open up reduced-tariff quotas for a number of products including beef, cereals and fruits and vegetables. The quotas will be expanded to about 5 percent of consumption over the 6 year period. Japan and Korea have agreed to a greater expansion of market access for rice in compensation for the delay in introducing tariffs. The ability of countries to control export subsidies in agricultural markets was one of the main issues under discussion in the negotiation. Under the Agreement, countries accept commitments on reducing expenditure on export subsidies as well on the quantity of subsidized exports. This will limit export subsidies by the EU and other countries, for such products as wheat, dairy products and beef, and should lead to firmer world market prices in these commodities. These quantities are also expressed in the Schedules which form part of the Agreement. Countries have also agreed not to apply export subsidies to commodities not subsidized in the base period. The Agreement also sets rules and commitments for domestic support policies. It defines a set of policies which are deemed to be less trade-distorting than others, and allocates them to a "green box" which is broadly immune to challenge. Other policies not sheltered in this way are subject to reduction through a limit on the total support given by domestic subsidies and administered prices. It was decided that neither the U.S. deficiency payments (under current legislation) nor the new hectarage compensation payments under the reformed Common Agricultural Policy of the EU need to be reduced. It was also agreed that subsidies that conform to the new rules are sheltered from international challenge under the GATT. Developing Countries generally face less stringent commitments, having 10 years rather than six to make the changes, and having to meet only two-thirds of the reduction targets. In addition, development policies are included broadly in the "green box". Along with the provisions on domestic and trade policies in the Agreement, participants also concluded an Agreement on Sanitary and Phytosanitary Measures (SPS Agreement). The goal was to make it easier to distinguish between genuine health and safety issues and disguised protection. The right of countries to set their own safety and health standards is reaffirmed, but with the provision that such standards should be based on scientific justification and that use be made of international standards where possible. The extent to which the Agreement will lead to greater market access, curb export subsidies and modify domestic policies in the next few years can only be determined from a detailed inspection of the Schedule of commitments made by the individual countries. Paradoxically, the immediate impact on national policies is likely in most cases to be small. Many countries have been engaged in a process of reducing government support to agriculture, and making such support more closely targetted to needs, in advance of the outcome of the Round. Policy reforms in the EU, Canada, Sweden, Australia and New Zealand, along with much of Latin America, have been strongly influenced by the negotiations in the Uruguay Round. The Agreement thus takes on the task of supporting and locking-in such reforms, and encouraging them in other countries. In some aspects the Agreement falls short of expectations (or at least initial demands). It does not constitute a major move toward free trade in agricultural products: the cost of changing the rules has been to give up some degree of liberalization. The tariffs which countries will impose in place of non-tariff barriers are in many cases so high that trade will be restricted to the agreed access quantities. Export subsidy programs will continue though at a reduced level. The major pressure to reinstrument farm policies will continue to be from domestic budget constraints. It will take further rounds of negotiations to reduce protection in agricultural markets to a level comparable to that for most manufactured products. However, with the rule changes and the new types of country commitments agreed, a much more promising basis bas been created for future negotiations.International Relations/Trade,

Supplier selection under disaster uncertainty with joint procurement

Master of ScienceDepartment of Industrial & Manufacturing Systems EngineeringJessica L. Heier StammHealth care organizations must have enough supplies and equipment on hand to adequately respond to events such as terrorist attacks, infectious disease outbreaks, and natural disasters. This is achieved through a robust supply chain system. Nationwide, states are assessing their current supply chains to identify gaps that may present issues during disaster preparedness and response. During an assessment of the Kansas health care supply chain, a number of vulnerabilities were identified, one of which being supplier consolidation. Through mergers and acquisitions, the number of suppliers within the health care field has been decreasing over the years. This can pose problems during disaster response when there is a surge in demand and multiple organizations are relying on the same suppliers to provide equipment and supplies. This thesis explores the potential for joint procurement agreements to encourage supplier diversity by splitting purchasing among multiple suppliers. In joint procurement, two or more customers combine their purchases into one large order so that they can receive quantity discounts from a supplier. This research makes three important contributions to supplier selection under disaster uncertainty. The first of these is the development of a scenario-based supplier selection model under uncertainty with joint procurement. This optimization model can be used to observe customer purchasing decisions in various scenarios while considering the probability of disaster occurrence. Second, the model is applied to a set of experiments to analyze the results when supplier diversity is increased and when joint procurement is introduced. This leads to the third and final contribution: a set of recommendations for health care organization decision makers regarding ways to increase supplier diversity and decrease the risk of disruption associated with disaster occurrence

Optimization of stochastic lossy transport networks and applications to power grids

Motivated by developments in renewable energy and smart grids, we formulate a stylized mathematical model of a transport network with stochastic load fluctuations. Using an affine control rule, we explore the trade-off between the number of controllable resources in a lossy transport network and the performance gain they yield in terms of expected power losses. Our results are explicit and reveal the interaction between the level of flexibility, the intrinsic load uncertainty and the network structure.Comment: 30 pages, 10 figure

Smoke and Mirrors: The Kyoto Protocol and Beyond

The Kyoto Protocol (KP) is considered a necessary first step towards an effective future climate accord. As argued in this paper, however, the KP will likely fail because it has too many loopholes, inadequate governance structures and insufficient compliance provisions. This view is supported by case studies of Canada, Japan and the Netherlands. These countries are unlikely to achieve their self-imposed targets, or, if they do, the costs of compliance will be unacceptably high. Consequently, the difficulty of achieving agreement to reduce global emissions by half (as required to mitigate climate change) is greatly increased.Climate change mitigation, Kyoto Protocol and implementation, Carbon sinks

Effect of Trade Liberalization in the Short-Grain Japonica Rice Market: A Spatial-Temporal Equilibrium analysis

Serious attention has always been bestowed on the stability of food markets. The government has acted on these issues through intervention on food prices that more or less creates distortion. These have been observed on U.S. and Japan. This paper develops a spatial-temporal equilibrium model for short-grain japonica trade and simulates policy alternatives for free trade and improved trade. It then discusses the results and its implications on the Philippine economy.demand