A Typical Case of Weak Institutional Complementarity in Institution Building : The Design of Transmission Network Monopoly in Competitive Electricity Markets
International audience In a “Weak institutional complementarity” type of institution building it is typically the less replaceable institutional characteristic which dictates the path of change for the institution as a whole. We will show it is exactly what explains the diversity and imperfection of...
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ftsupelec:oai:HAL:hal-00217811v1 2023-05-15T16:51:00+02:00 A Typical Case of Weak Institutional Complementarity in Institution Building : The Design of Transmission Network Monopoly in Competitive Electricity Markets Glachant, Jean-Michel Rious, Vincent Analyse des Dynamiques Industrielles et Sociales (ADIS) Université Paris-Sud - Paris 11 (UP11)-Département d'Economie SUPELEC-Campus Gif Ecole Supérieure d'Electricité - SUPELEC (FRANCE) Reykjavik, Iceland 2007-06-21 https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811 https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811/document https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811/file/GlachantRiousDessante_ISNIE_Reikjavick2007_TSo_as_Weak_Institutional_Complementarity_17Juin2007_Vdef.pdf en eng HAL CCSD hal-00217811 https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811 https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811/document https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811/file/GlachantRiousDessante_ISNIE_Reikjavick2007_TSo_as_Weak_Institutional_Complementarity_17Juin2007_Vdef.pdf info:eu-repo/semantics/OpenAccess Proceedings of the 11th Annual ISNIE Conference, Reykjavik, June 2007 11th Annual ISNIE Conference, Reykjavik, June 2007 https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811 11th Annual ISNIE Conference, Reykjavik, June 2007, Jun 2007, Reykjavik, Iceland. pp.1-41 TSO weak institutional complementarity modular analysis [SHS.ECO]Humanities and Social Sciences/Economics and Finance info:eu-repo/semantics/conferenceObject Conference papers 2007 ftsupelec 2023-02-15T00:23:04Z International audience In a “Weak institutional complementarity” type of institution building it is typically the less replaceable institutional characteristic which dictates the path of change for the institution as a whole. We will show it is exactly what explains the diversity and imperfection of actual transmission monopoly designs in competitive electricity markets. Firstly we argue that transmission monopoly in competitive electricity markets has to be analysed within an industry modular frame. Transmission is a set of several modules which have to be distinguished and separated in any design analysis and comparison. At least three modules make the core of transmission design: 1° the short run management of network externality; 2° the short run management of cross border trade; and 3° the long run management of network investment. Second in a new-institutional economics perspective we say that 1°monopoly design in a competitive policy cannot handle these three modules irrespective of the “institutional” definition and allocation of property rights on transmission; while 2°definition and allocation of property rights on transmission cannot ignore the existing electrical industry and transmission network structure: they basically have to complement each other. Third we apply this frame to compare PJM (USA) and NGC (UK) and we show it remarkably illuminates the reality. Conference Object Iceland Supélec (Ecole supérieure d'électricité): Publications scientifiques (HAL) |
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Supélec (Ecole supérieure d'électricité): Publications scientifiques (HAL) |
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language |
English |
topic |
TSO weak institutional complementarity modular analysis [SHS.ECO]Humanities and Social Sciences/Economics and Finance |
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TSO weak institutional complementarity modular analysis [SHS.ECO]Humanities and Social Sciences/Economics and Finance Glachant, Jean-Michel Rious, Vincent A Typical Case of Weak Institutional Complementarity in Institution Building : The Design of Transmission Network Monopoly in Competitive Electricity Markets |
topic_facet |
TSO weak institutional complementarity modular analysis [SHS.ECO]Humanities and Social Sciences/Economics and Finance |
description |
International audience In a “Weak institutional complementarity” type of institution building it is typically the less replaceable institutional characteristic which dictates the path of change for the institution as a whole. We will show it is exactly what explains the diversity and imperfection of actual transmission monopoly designs in competitive electricity markets. Firstly we argue that transmission monopoly in competitive electricity markets has to be analysed within an industry modular frame. Transmission is a set of several modules which have to be distinguished and separated in any design analysis and comparison. At least three modules make the core of transmission design: 1° the short run management of network externality; 2° the short run management of cross border trade; and 3° the long run management of network investment. Second in a new-institutional economics perspective we say that 1°monopoly design in a competitive policy cannot handle these three modules irrespective of the “institutional” definition and allocation of property rights on transmission; while 2°definition and allocation of property rights on transmission cannot ignore the existing electrical industry and transmission network structure: they basically have to complement each other. Third we apply this frame to compare PJM (USA) and NGC (UK) and we show it remarkably illuminates the reality. |
author2 |
Analyse des Dynamiques Industrielles et Sociales (ADIS) Université Paris-Sud - Paris 11 (UP11)-Département d'Economie SUPELEC-Campus Gif Ecole Supérieure d'Electricité - SUPELEC (FRANCE) |
format |
Conference Object |
author |
Glachant, Jean-Michel Rious, Vincent |
author_facet |
Glachant, Jean-Michel Rious, Vincent |
author_sort |
Glachant, Jean-Michel |
title |
A Typical Case of Weak Institutional Complementarity in Institution Building : The Design of Transmission Network Monopoly in Competitive Electricity Markets |
title_short |
A Typical Case of Weak Institutional Complementarity in Institution Building : The Design of Transmission Network Monopoly in Competitive Electricity Markets |
title_full |
A Typical Case of Weak Institutional Complementarity in Institution Building : The Design of Transmission Network Monopoly in Competitive Electricity Markets |
title_fullStr |
A Typical Case of Weak Institutional Complementarity in Institution Building : The Design of Transmission Network Monopoly in Competitive Electricity Markets |
title_full_unstemmed |
A Typical Case of Weak Institutional Complementarity in Institution Building : The Design of Transmission Network Monopoly in Competitive Electricity Markets |
title_sort |
typical case of weak institutional complementarity in institution building : the design of transmission network monopoly in competitive electricity markets |
publisher |
HAL CCSD |
publishDate |
2007 |
url |
https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811 https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811/document https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811/file/GlachantRiousDessante_ISNIE_Reikjavick2007_TSo_as_Weak_Institutional_Complementarity_17Juin2007_Vdef.pdf |
op_coverage |
Reykjavik, Iceland |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
Proceedings of the 11th Annual ISNIE Conference, Reykjavik, June 2007 11th Annual ISNIE Conference, Reykjavik, June 2007 https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811 11th Annual ISNIE Conference, Reykjavik, June 2007, Jun 2007, Reykjavik, Iceland. pp.1-41 |
op_relation |
hal-00217811 https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811 https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811/document https://hal-centralesupelec.archives-ouvertes.fr/hal-00217811/file/GlachantRiousDessante_ISNIE_Reikjavick2007_TSo_as_Weak_Institutional_Complementarity_17Juin2007_Vdef.pdf |
op_rights |
info:eu-repo/semantics/OpenAccess |
_version_ |
1766041117874192384 |