The electricity market deregulation and its influence on R&D in green electricity generation : John Sutton's model on technology and market structure and its application to the electricity market
Only abstract. Paper copies of master’s theses are listed in the Helka database (http://www.helsinki.fi/helka). Electronic copies of master’s theses are either available as open access or only on thesis terminals in the Helsinki University Library.Vain tiivistelmä. Sidottujen gradujen saatavuuden voit tarkistaa Helka-tietokannasta (http://www.helsinki.fi/helka). Digitaaliset gradut voivat olla luettavissa avoimesti verkossa tai rajoitetusti kirjaston opinnäytekioskeilla.Endast sammandrag. Inbundna avhandlingar kan sökas i Helka-databasen (http://www.helsinki.fi/helka). Elektroniska kopior av avhandlingar finns antingen öppet på nätet eller endast tillgängliga i bibliotekets avhandlingsterminaler.The first part of this thesis is an elaboration on the Market Structure and Technology approach. As an introduction to the discussion on the approach an overview on what has been done by different economists (starting from Schumpeter) over time is provided. As theoretic foundation Sutton's gametheoretic model on "Technology and Market Structure" is considered. This thesis tries to show its compatibility to the electricity market and whether it can expiain changes in the market structure and consequentiy technologicai advances in green electricity generation. An introduction to the model considering a linear demand model wili start the analysis of Sutton's model. Thereafter, the basic setting of Sutton's game-theoretic approach wili broaden the analysis. The second part of this thesis wili enhance the model specification, the deregulation in the electricity market in Finland and Germany and the potential market structure development in the electricity industry. Criticai remarks on the modei's suitability wili foliow. Furthermore will be pointed out which problems occur by unravelling the levei of the observable variables from Sutton's model using existing data on Germany and Finland's electricity markets. Because of statisticai deficiencies for available data on the proxy variables resuits of a smali survey on the electricity generating industry in Finland, which could be used for further research in the area, wili be presented. Finally, conciuding remarks wili evaluate the model's suitability and the potentiai threats to the levei of concentration in the electricity market as weli as the influence on R&D in green technologie
