Researchers To Study Electricity Deregulation

October 29, 1998

ITHACA, N.Y. -- The National Science Foundation (NSF) has awarded a group of Cornell University economists and engineers a multidisciplinary grant to study the effects of competitive markets on the reliable operation of the electricity supply system.

The award, totaling $282,655, comes from the NSF's divisions of Electrical and Communications Systems and of Social, Behavioral and Economic Research.

The Cornell researchers involved in the project are Timothy Mount, professor of agricultural, resource and managerial economics, and director of the Cornell Institute for Social and Economic Research; Richard Schuler, professor of economics and of civil and environmental engineering, and director of the Cornell Institute of Public Affairs; William Schulze, the K.L. Robinson Professor of Agricultural Economics and Public Policy; Robert J. Thomas, professor of electrical engineering, and director of the Cornell-led multi-university Power Systems Engineering Research Center; and Ray Zimmerman, electrical engineering research associate.

Deregulation is increasing competition in the power generation part of the electric utility industry, and it is beginning to offer consumers a choice through their local distribution companies.

Using a simulated Northeast electricity grid and data from laboratory experiments in market behavior, the Cornell researchers will examine new operating rules for the system and the effects of alternative market structures. They will seek to strike a balance in their study between ideal market mechanisms and traditional utility practices that promise to provide inexpensive energy for consumers, while maintaining system stability and reliability.

Says Schuler: "The electricity market is unique, the epitome of a just-in-time delivery system. You cannot build inventory, and if you do not find the right customer for your product at the right time and price, the potential consequences are tremendous for both the provider and the consumer."

Comments Thomas: "This is a perfect example of a challenging problem requiring the talents and expertise of both engineers and economists in order to create practical results of benefit to society."
Contact: David Brand
Office: (607) 255-3651

Cornell University

Related Economics Articles from Brightsurf:

A century of misunderstanding of a key tool in the economics of natural resources
In the past few weeks, oil prices have fallen to record lows.

What comes after COVID-19? Special issue in the journal Population and Economics
At this alarming time, when the COVID-19 pandemic is on everyone's mind, a new special issue in the open-access peer-reviewed journal Population and Economics provides a platform for discussion on the impact of the pandemic on the population and economics, both in Russia and worldwide.

Challenges for Russia's agriculture: new special issue in Russian Journal of Economics
While Russia seems to have tackled its historic problem: food shortage -- with the agri-food sector becoming one of the most steadily developing of the national economy in the last decade -- there is a new set of challenges.

Brief entrance test can predict academic success within first year of study in economics
German researchers at Johannes Gutenberg University Mainz (JGU) and Humboldt-Universit├Ąt zu Berlin found that even a short test can reliably predict students' success within their first year of study in economics -- much better than an intelligence test or predictions based on school grades.

The case for economics -- by the numbers
In recent years, criticism has been levelled at economics for being insular and unconcerned about real-world problems.

Scientists develop open-source software to analyze economics of biofuels, bioproducts
Perennial grasses can be converted into everything from ethanol to bioplastics, but it's unclear which bioproducts hold the greatest potential.

Life data economics: calling for new models to assess the value of human data
After the collapse of the blockchain bubble a number of research organisations are developing platforms to enable individual ownership of life data and establish the data valuation and pricing models.

SCAI and ACVP release consensus statement on cardiovascular catheterization laboratory economics
A newly released expert consensus statement provides recommendations for optimizing the financial operations of the cardiovascular catheterization laboratory (CCL) while providing cutting-edge patient care.

Shocking economics
Understanding economies in times of crises? Modern macroeconomics failed so far.

When does one of the central ideas in economics work?
Many situations in economics are complicated and competitive; this research raises the question of whether many theories in economics may suffer from the very fundamental problem that the key behavioral assumption of equilibrium is wrong.

Read More: Economics News and Economics Current Events is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to