A Quantitative Analysis of Pricing Behavior In California’s Wholesale Electricity Market During Summer 2000

During the Summer of 2000, wholesale electricity prices in California were nearly 500% higher than they were during the same months in 1998 or 1999. This price explosion was unexpected and has called into question whether electricity restructuring will bring the benefits of competition promised to consumers. The purpose of this paper is to examine the factors that explain this increase in wholesale electricity prices. We simulate competitive benchmark prices for Summer of 2000 taking account of all relevant supply and demand factors --- gas prices, demand, imports from other states, and emission permit prices. We then compare the simulated competitive benchmark prices with the actual prices observed. We find that there is a large gap between our benchmark competitive prices and observed prices, suggesting that the prices observed during summer 2000 reflect, in part, the exercise of market power by suppliers. We then proceed to examine supplier behavior during high-price hours. We find evidence that suppliers withheld supply from the market that would have been profitable for price-taking firms to sell at the market price.electricity, market power, deregulation

From John Lindsay to Rudy Giuliani: the decline of the local safety net?

This paper was presented at the conference "Unequal incomes, unequal outcomes? Economic inequality and measures of well-being" as part of session 4, "Economic inequality and local public services." The conference was held at the Federal Reserve Bank of New York on May 7, 1999. The authors contend that the future scope of city-based redistributive policies is limited. An important way in which policymakers work to reduce inequality is by redistributing income from the wealthy to the poor, channeling income tax revenue into spending on welfare and other services. The authors suggest, however, that New York City and other cities have had to scale back their redistributive policies. New York City's evolution from a manufacturing city to a service city accounts for more than one-third of the reduction in redistribution, because businesses in the service sector are more mobile and are therefore harder to tax than those in manufacturing. In addition, the authors document a more general decline in the relationship between land area and redistribution. In 1970, cities with greater land area tended to redistribute more income, but by 1990, this connection was no longer evident. The authors attribute this change to an erosion in the market power of large cities and observe that increased mobility and the existence of edge cities have contributed to a decline in the monopoly power once enjoyed by large cities.Public policy ; Public welfare ; Income distribution ; Income

Decentralized Employment and the Transformation of the American City

This paper examines the decentralization of employment using zip code data on employment by industry. Most American cities are decentralized--on average less than 16 percent of employment in metropolitan areas is within a three mile radius of the city center. In decentralized cities, the classic stylized facts of urban economics (i. e. prices fall with distance to the city center, commute time rise with distance and poverty falls with distance)no longer hold. Decentralization is most common in manufacturing and least common in services. The human capital level of an industry predicts its centralization, but the dominant factor explaining decentralization is the residential preferences of workers. Political borders also impact employment density which suggests that local government policies significantly influence the location of industry.

Sprawl and Urban Growth

Cities can be thought of as the absence of physical space between people and firms. As such, they exist to eliminate transportation costs for goods, people and ideas and transportation technologies dictate urban form. In the 21st century, the dominant form of city living is based on the automobile and this form is sometimes called sprawl. In this essay, we document that sprawl is ubiquitous and that it is continuing to expand. Using a variety of evidence, we argue that sprawl is not the result of explicit government policies or bad urban planning, but rather the inexorable product of car-based living. Sprawl has been associated with significant improvements in quality of living, and the environmental impacts of sprawl have been offset by technological change. Finally, we suggest that the primary social problem associated with sprawl is the fact that some people are left behind because they do not earn enough to afford the cars that this form of living requires.

Sprawl and Urban Growth

Cities can be thought of as the absence of physical space between people and firms. As such, they exist to eliminate transportation costs for goods, people and ideas and transportation technologies dictate urban form. In the 21st century, the dominant form of city living is based on the automobile and this form is sometimes called sprawl. In this essay, we document that sprawl is ubiquitous and that it is continuing to expand. Using a variety of evidence, we argue that sprawl is not the result of explicit government policies or bad urban planning, but rather the inexorable product of car-based living. Sprawl has been associated with significant improvements in quality of living, and the environmental impacts of sprawl have been offset by technological change. Finally, we suggest that the primary social problem associated with sprawl is the fact that some people are left behind because they do not earn enough to afford the cars that this form of living requires.

Comparison of Standard Length, Fork Length, and Total Length for Measuring West Coast Marine Fishes

Measurements of adult marine fishes on the U.S. west coast are usually made using one of three methods: standard length, fork length, or total length. Each method has advantages and disadvantages. In this paper we attempt to determine whether one method is faster and/or more reliable than the other methods. We found that all three methods were comparable. There was no appreciable difference in the time it took to measure fish using the different methods. Fork length had the most reproducible results; however, it had the highest level of bias between researchers. We therefore suggest that selection of measurement type be based on what other researchers have used for the species under study. The best improvement in measurement reliability probably occurs by adequate training of personnel and not type of measurement used

A Quantitative Analysis of Pricing Behavior In California's Wholesale Electricity Market During Summer 2000

A Quantitative Analysis of Pricing Behavior In California's Wholesale Electricity Market During Summer 200

Reactive Power is a Cheap Constraint

Hogan (1993) has proposed a version of marginal cost pricing for electricity transmission transactions that include a component for reactive power to support voltage at demand nodes . His examples support the notion that the cost of satisfying voltage constraints can be quite high . We show that in his simplest example the price on this constraint results from an uneconomic and artificial characterization of the problem, namely an inefficient and unnecessarily constrained dispatch . By eliminating this characterization, the price of reactive power falls to a very modest level . Our counterexample has implications for the institutional arrangements under which transmission pricing reform will take place . We believe that environment will be an open access competitive setting, where dispatch is still controlled by one group of participants. Manipulation of marginal transmission costs becomes quite feasible in complex networks through subtle changes to dispatch . Therefore an open access regime using marginal cost pricing must involve either some kind of monitoring and audit function to detect potential abuses, or alternatively, institutional restructuring to eliminate conflicts of interestElectrical and Computer Engineerin

Glycosylation of hyperthermostable designer cellulosome components yields enhanced stability and cellulose hydrolysis

Biomass deconstruction remains integral for enabling second‐generation biofuel production at scale. However, several steps necessary to achieve significant solubilization of biomass, notably harsh pretreatment conditions, impose economic barriers to commercialization. By employing hyperthermostable cellulase machinery, biomass deconstruction can be made more efficient, leading to milder pretreatment conditions and ultimately lower production costs. The hyperthermophilic bacterium Caldicellulosiruptor bescii produces extremely active hyperthermostable cellulases, including the hyperactive multifunctional cellulase CbCel9A/Cel48A. Recombinant CbCel9A/Cel48A components have been previously produced in Escherichia coli and integrated into synthetic hyperthermophilic designer cellulosome complexes. Since then, glycosylation has been shown to be vital for the high activity and stability of CbCel9A/Cel48A. Here, we studied the impact of glycosylation on a hyperthermostable designer cellulosome system in which two of the cellulosomal components, the scaffoldin and the GH9 domain of CbCel9A/Cel48A, were glycosylated as a consequence of employing Ca. bescii as an expression host. Inclusion of the glycosylated components yielded an active cellulosome system that exhibited long‐term stability at 75 °C. The resulting glycosylated designer cellulosomes showed significantly greater synergistic activity compared to the enzymatic components alone, as well as higher thermostability than the analogous nonglycosylated designer cellulosomes. These results indicate that glycosylation can be used as an essential engineering tool to improve the properties of designer cellulosomes. Additionally, Ca. bescii was shown to be an attractive candidate for production of glycosylated designer cellulosome components, which may further promote the viability of this bacterium both as a cellulase expression host and as a potential consolidated bioprocessing platform organism

Why Do The Poor Live In Cities? The Role of Public Transportation

More than 19 percent of people in American central cities are poor. In suburbs, just 7.5 percent of people live in poverty. The income elasticity of demand for land is too low for urban poverty to come from wealthy individuals' wanting to live where land is cheap (the traditional explanation of urban poverty). A significant income elasticity for land exists only because the rich eschew apartment living, and that elasticity is still too low to explain the poor's urbanization. The urbanization of poverty comes mainly from better access to public transportation in central cities.Economic