The Investment Effects of Market Integration: Evidence From Renewable Energy Expansion in Chile

IF 6.6 1区经济学 Q1 ECONOMICS

Econometrica Pub Date : 2023-10-03 DOI:10.3982/ECTA20769

Luis E. Gonzales, Koichiro Ito, Mar Reguant

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引用次数: 1

Abstract

We study the investment effects of market integration on renewable energy expansion. Our theory highlights that market integration not only improves allocative efficiency by gains from trade but also incentivizes new investment in renewable power plants. To test our theoretical predictions, we examine how recent grid expansions in the Chilean electricity market changed electricity production, wholesale prices, generation costs, and renewable investments. We then build a structural model of power plant entry to quantify the impact of market integration with and without the investment effects. We find that the market integration in Chile increased solar generation by around 180%, saved generation costs by 8%, and reduced carbon emissions by 5%. A substantial amount of renewable entry would not have occurred in the absence of market integration. Our findings suggest that ignoring these investment effects would substantially understate the benefits of market integration and its important role in expanding renewable energy.

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市场一体化的投资效应：来自智利可再生能源扩张的证据

我们研究了市场整合对可再生能源扩张的投资效应。我们的理论强调，市场一体化不仅通过贸易收益提高了配置效率，还激励了对可再生发电厂的新投资。为了检验我们的理论预测，我们研究了智利电力市场最近的电网扩张如何改变电力生产、批发价格、发电成本和可再生能源投资。然后，我们建立了一个发电厂进入的结构模型，以量化有投资效应和没有投资效应的市场整合的影响。我们发现，智利的市场一体化使太阳能发电量增加了约180%，节约了8%的发电成本，并减少了5%的碳排放。如果没有市场一体化，就不会有大量可再生能源进入。我们的研究结果表明，忽视这些投资效应将大大低估市场一体化的好处及其在扩大可再生能源方面的重要作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Econometrica 社会科学-数学跨学科应用

CiteScore

11.00

自引率

3.30%

发文量

审稿时长

6-12 weeks

期刊介绍： Econometrica publishes original articles in all branches of economics - theoretical and empirical, abstract and applied, providing wide-ranging coverage across the subject area. It promotes studies that aim at the unification of the theoretical-quantitative and the empirical-quantitative approach to economic problems and that are penetrated by constructive and rigorous thinking. It explores a unique range of topics each year - from the frontier of theoretical developments in many new and important areas, to research on current and applied economic problems, to methodologically innovative, theoretical and applied studies in econometrics. Econometrica maintains a long tradition that submitted articles are refereed carefully and that detailed and thoughtful referee reports are provided to the author as an aid to scientific research, thus ensuring the high calibre of papers found in Econometrica. An international board of editors, together with the referees it has selected, has succeeded in substantially reducing editorial turnaround time, thereby encouraging submissions of the highest quality. We strongly encourage recent Ph. D. graduates to submit their work to Econometrica. Our policy is to take into account the fact that recent graduates are less experienced in the process of writing and submitting papers.

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