Non-Constant Elasticity of Substitution and Intermittent Renewable Energy

Non-renewable and intermittent renewable energy sources: friends and foes?

Is the Elasticity of Intertemporal Substitution Constant?∗

This paper shows that the CRRA specification of intertemporal preferences (implying a constant elasticity of intertemporal substitution, or EIS), imposes surprising limitations on within period budget allocations. Consequently, the constant EIS assumption can be tested with demand data. In fact, the parameter of the CRRA utility function is pinned down completely by the shape of Engel curves; i...

Energy Sources: Non Renewable and Renewable

Non-Extensive Entropy Econometrics: New Statistical Features of Constant Elasticity of Substitution-Related Models

Power-law (PL) formalism is known to provide an appropriate framework for canonical modeling of nonlinear systems. We estimated three stochastically distinct models of constant elasticity of substitution (CES) class functions as non-linear inverse problem and showed that these PL related functions should have a closed form. The first model is related to an aggregator production function, the se...

Reliability and Market Price of Energy in the Presence of Intermittent and Non-Dispatchable Renewable Energies

The intermittent nature of the renewable energies increases the operation costs of conventional generators. As the share of energy supplied by renewable sources increases, these costs also increase. In this paper, we quantify these costs by developing a market clearing price of energy in the presence of renewable energy and congestion constraints. We consider an electricity market where generat...