Titlebook: Regulation of Energy Markets; Economic Mechanisms Machiel Mulder Textbook 2023Latest edition The Editor(s) (if applicable) and The Author(

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Natural Monopoly in Transport and Distribution,n characterized by a natural monopoly. This chapter first discusses the economic definition of natural monopolies and what the consequences are if a firm operating a natural monopoly is not regulated (Sect. .). Section . discusses the principles of tariff regulation and how to deal with the informat

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Externalities in Production and Consumption in Energy Markets,use of externalities. Examples of externalities in energy markers are the environmental effects of using fossil energy and the impact of importing fossil energy on security of supply. This chapter first discusses how the various types of externalities in energy markets distort market outcomes (Sect.

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Market Power in Wholesale and Retail Energy Markets,ce market prices. This vulnerability is related to a number of factors: low price sensitivity of demand, inflexibility of supply, limited abilities to store energy and restricted capacities of the transportation network. These characteristics are discussed in Sect. 9.3. First, Sect. 9.2 discusses th

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International Restrictions on Trade in Energy,e functioning of energy markets. This chapter first discusses the negative effects of international trade barriers on productive efficiency (i.e. costs per unit of production), allocative efficiency (i.e. intensity of competition and international differences in prices) and security of supply (Sect.

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