Strategic use of available capacity in the electricity spot market

The literature on deregulated electricity markets generally assumes available capacities to be given. In contrast, this paper studies a model where firms precommit to capacity levels before competing in a uniform price auction. The analysis sheds light on recent empirical findings that firms use their available capacity to obtain high market prices. There exist two equilibria where at least one firm withholds its available capacity to induce the maximum price. Moreover, in one equilibrium, the inefficient firm obtains a relatively large market share.spot market; capacity game; auction mechanism; electricity.

Negotiation tools for vegetable commodity chain in Vientiane : SUSPER (sustainable development of peri-urban agriculture in South-East Asia) project

This report gives an overview of the vegetable sector in Vientiane prefecture in terms of production and market (supply and demand). The report is based on secondary data (see bibliography) and some preliminary results from the analysis of the data collected during the production and market surveys carried out by the Susper project. Additionally results have been presented of the meeting held in Vientiane in early December 2002. Finally, some recommendations for the further steps are given in conclusion. (Résumé d'auteur

Disaster risk management or adaptation to climate change; How to deal with climate issue in Colombia? Analysis from agenda setting and traveling model perspectives of the elaboration of climate policies.

The main purpose of this work is to understand, in an actor oriented perspective, the context in which climate policy are formulated in a country, Colombia. Using agenda setting and travelling model perspectives, we analyzed the role of actors at international and national level on the rise of climate issue and the shape of climate policies. Results showed that the rise of climate issue in Colombia is, from one side, the product of external and internal factors and on the other side, the product of translation chains from several actors on how to see the problem and how to address it. External factors initiated the reflection of CC (international commitments, international actors' translations) but this is an internal factor (Niña phenomenon) that allow a real appropriation of the topic by government members. Government members used traveling model translations as a power issue; the DNP representing at climate change adaptation versus the UNGRD representing at disaster risk management. At the end of the translation chains, government members re-appropriate international consultants' version (of the issue and solution) into an economical perspective; adaptation to climate change as an economical opportunity or as a way to avoid economical loss

Assessing gas transit risks: Russia vs. the EU

This paper proposes a Transit Risk Index (TRI) designed to assess the riskiness of pipeline gas imports and to study the effect of introducing new gas routes. TRI controls for gas dependency, transit route diversification, political risks of transit, pipeline rupture probability, and the balance of power between supplying and consuming countries along the transit route. Evaluating TRI for the EU-Russia gas trade, we show that the introduction of the Nord Stream pipeline would further widen already large disparities in gas risk exposure across the EU Member States. The gas risk exposure of the Member States served by Nord Stream would decline. In contrast, EU countries not connected to Nord Stream, but sharing other Russian gas transit routes with the Nord Stream countries, would face greater gas risk exposure. We discuss the implications of our analysis for the design of the common energy policy in the EU.Gas transit risk; Index; Security of supply; Nord Stream; Common Energy Policy

Long-term supply contracts and collusion in the electricity market

It has been argued that having a contract market before the spot market enhances competition (Allaz and Vila, 1993). Taking into account the repeated nature of electricity markets, we check the robustness of the argument that the access to contract markets reduces the market power of generators. In particular, we investigate the sensitivity of this result with respect to the finite horizon assumption. This paper proposes a model of the electricity market where firms sign long-term supply contracts with their retailers. Subsequently, the firms repeatedly interact on the spot market. It is shown that contract markets help sustain collusion on the spot market

Spatial models of farms territories, policy instrument and climate change. Application in the Región Chorotega, Costa Rica. P119

References Climate mitigation and adaptation can be tackled at the landscape scale, combining agricultural and non-agricultural components, reduced deforestation, development of agro-forestry and integrated crop-livestock systems. The spatial distribution of land use could be critical to achieve both climate change issue and income generation and distribution. Should land be spared or shared to reach climate smart goals? To answer this research question, we analyze the impact of the Costa Rican program of recognition for environmental benefits (REB) on the layout of land use in farms located in the Chorotega Region (Northwestern Costa Rica) characterized by confronting environmental issues, such as recent forest recovery process, but land degradation and water scarcity. The Ministry of Agriculture has implemented the REB program from 2007. Extensive livestock is the main sub sector and area for REB use. We will discuss a development model of land sparing that would imply intensification of breeding to reduce the pressure on forest area. The "intensive grazing" (breeding with supply inputs) uses less space than the "extensive grazing" and could thus save space for forest regeneration. The technical model of intensive livestock may use a diet based on purchased inputs and improved pastures. A survey in 76 farms that participated to the REB program was carried out from February to May 2014. This survey enables to collect information related to the evolution of farms' activities and their location before and after their participation to REB. We process this information by using spatial methods (graphical modeling, Brunet, 1980 ; Cheylan et al. 1990), to identify patterns of land use distribution. Elementary spatial structures (" chorèmes " , Fig 1) are combined to form graphic models. The theorical model that we will discuss is presented with a model graphic in Fig 2. (Texte intégral

Contract farming and standards for a better market integration: two case studies in Costa Rica

1) Introduction (who and where) Integration to both domestic and international dynamic markets is still crucial for medium and small-sized producers in emerging economies. This market integration is determined by several endogenous and exogenous conditions with respect to producers themselves, which yields different levels of success within a specific sector. Transaction costs, price uncertainty, and lack of confidence along the agri-chain are some of the structural problems that hinder a better integration. As the agricultural policy over the past 20 years has been strongly biased toward the promotion of export-oriented cash crops, with little attention to important food crops for the Costa Rican population (i.e. rice, beans, horticulture in general). In the long term, food security in Costa Rica may be endangered by transaction costs and lack of a real public policy in this matter, while the country may progressively depend on the import of partially or totally processed food. Contract farming and the implementation of grades and standards (G&S) are two important instruments aimed to gain a better market integration. Contract farming has been mentioned in the literature as an instrument to considerably reduce transaction costs, and provide a better institutional environment for integration small and medium-sized producers into the market. On the other hand, G & S becomes an important complement of contracts for compliance of several clue issues, such as regularity and confidence on extrinsic products' characteristics (biosecurity, environmental effects), and improvement of social conditions at primary production level. Under certain conditions, both instruments can be part of a successful strategy to integrate producers into dynamic chains and assure sustainable production. Nevertheless, synergies and competition between contract and G&S strategy has been poorly documented. 2) Objective of the action (what) In this presentation we analyze two different agri-chains with different market orientations: chayote (Sechium edule Sw.) for both domestic and international markets; and pineapple (Ananas sativus (Lindl) Schult.) oriented toward international market. In the first case, G&S are less developed than in the second case, while in both cases they manage verbal procurement contracts. Moreover, both sectors are subject of low public regulation and receive little support from the Government. With an historical perspective, we analyze the level and configuration of market integration in each case and the role played by contracts and G&S in the sustainability of this integration. We focus on successful experiences and points out policy recommendations for further improvements. 3) Implementation process (how) For a successful implementation of both instruments (contracts and G&S) producers would require certain stable market relationship with a export/processing buyer, where flows of information regarding product specification goes from the buyer to the producer, while in the opposite direction the produce is delivered according the quality conditions (G&S), at the required volume and timing (contracts). A successful contractual relationship should be a "play of two", where the transference of risk, rights and obligations would conduct to a stable market integration. 4) Key points of success o Technical assistance provided by the buyer is the most successful mechanism to assure the right information goes to produces and monitor compliance of contracts and G&S. Important issues here are to gain maximum product coordination and avoid producers' default o Successful contracts should function as provider of insurance and incentives to producer, which in turn should yield effects in terms of equity (access to markets), and efficiency and sustainability of the market relationship. o Attitude, transparency, frequency and loyalty are key important issues to sustain a contractual relationship between two part