Imperfect Markets versus Imperfect Regulation in US Electricity Generation

This paper evaluates changes in electricity generation costs caused by the introduction of market mechanisms to determine production United States. I use staggered transition markets from 1999 2012 estimate causal impact liberalization using a differences-in-difference design on comprehensive hourly panel demand, generators’ costs, capacities, and output. find that reduce 5 percent reallocating production: gains trade across service areas increase 55 based 25 traded electricity, uneconomical units fall 16 percent. (JEL L51, L94, L98, Q41, Q48)