Schewe L, Schmidt M (2018)
Publication Language: English
Publication Status: Submitted
Publication Type: Other publication type
Future Publication Type: Journal article
Publication year: 2018
URI: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2628611
DOI: 10.2139/ssrn.2628611
Pricing of access to energy networks is an important issue in liberalized energy sectors because of the natural monopoly character of the underlying transport infrastructures. We introduce a general pricing framework for potential based energy flows in arbitrarily structured transport networks. In different specifications of our general pricing model we discuss first- and second-best pricing results and compare different pricing outcomes of potential-free and potential based energy flow models. Our results show that considering nonlinear laws of physics leads to significantly different pricing results on networks and that these differences can only be seen in sufficiently complex, e.g., cyclic, networks as they can be found in real-world situations.
APA:
Schewe, L., & Schmidt, M. (2018). The Impact of Potential-Based Physics Models on Pricing in Energy Networks.
MLA:
Schewe, Lars, and Martin Schmidt. The Impact of Potential-Based Physics Models on Pricing in Energy Networks. 2018.
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