This paper studies the mechanism design that induces firms to provide public goods under two regulatory means： price cap regulation and optimal regulation, respectively. We first outline two models of monopoly regula...This paper studies the mechanism design that induces firms to provide public goods under two regulatory means： price cap regulation and optimal regulation, respectively. We first outline two models of monopoly regulation with unobservable marginal costs and effort, which can be regard as an optimal problem with dual restrictions. By solving this problem, we get the two optimal regulatory mechanisms to induce the provision of public goods. Further, by comparative statics, the conclusion is drawn that the welfare loss as sociated with price cap regulation, with respective to optimal regulation, increases more with increase of the expense of public goods.展开更多
Energy equity refers to the condition in which access to the cleaner energy required by individuals is equally available to all.To relieve the energy expenditures-the key component in the concept of energy equity–of ...Energy equity refers to the condition in which access to the cleaner energy required by individuals is equally available to all.To relieve the energy expenditures-the key component in the concept of energy equity–of low-income communities,governments worldwide have imposed caps on soaring energy prices.However,the inherent mechanisms within the operational schedule remain undiscussed.This paper innovatively provides guidelines for operators to embed energy burden policies into the bulk power system model,by answering two critical questions.①What is the impact on system price pattern when embedding the locational price constraints?②How to reformulate the tie-line schedule to meet the equity thresholds?Consequently,a novel bi-level energy equity-constrained tie-line scheduling model is proposed.The conventional economic dispatch is solved at the upper level,and then a preliminary operational schedule is given to the lower level,where we propose an energy equity slackness component variable to evaluate the gap between preliminary and desired equity-satisfied operational schedules.The implicit constraints on the price are converted into explicit feasibility cuts with dual theory.Case studies on test systems demonstrate the reduced energy expenditure for underserved communities,and the optimal tie-line schedule is also validated.展开更多
文摘This paper studies the mechanism design that induces firms to provide public goods under two regulatory means： price cap regulation and optimal regulation, respectively. We first outline two models of monopoly regulation with unobservable marginal costs and effort, which can be regard as an optimal problem with dual restrictions. By solving this problem, we get the two optimal regulatory mechanisms to induce the provision of public goods. Further, by comparative statics, the conclusion is drawn that the welfare loss as sociated with price cap regulation, with respective to optimal regulation, increases more with increase of the expense of public goods.
文摘Energy equity refers to the condition in which access to the cleaner energy required by individuals is equally available to all.To relieve the energy expenditures-the key component in the concept of energy equity–of low-income communities,governments worldwide have imposed caps on soaring energy prices.However,the inherent mechanisms within the operational schedule remain undiscussed.This paper innovatively provides guidelines for operators to embed energy burden policies into the bulk power system model,by answering two critical questions.①What is the impact on system price pattern when embedding the locational price constraints?②How to reformulate the tie-line schedule to meet the equity thresholds?Consequently,a novel bi-level energy equity-constrained tie-line scheduling model is proposed.The conventional economic dispatch is solved at the upper level,and then a preliminary operational schedule is given to the lower level,where we propose an energy equity slackness component variable to evaluate the gap between preliminary and desired equity-satisfied operational schedules.The implicit constraints on the price are converted into explicit feasibility cuts with dual theory.Case studies on test systems demonstrate the reduced energy expenditure for underserved communities,and the optimal tie-line schedule is also validated.
