Abstract
We consolidate, generalize, and expand on a set of price-theory results to measure consumer benefits from technologies that improve the efficiency of allocations in markets. We then conduct the same efficiency-improving counterfactual experiment in three major electricity markets. The convexity of excess demand, obtained from the bids to buy and sell, is a novel measure that strongly predicts consumer benefits in all markets. It highlights that small allocative improvements from technology mandates lead to large redistributions of surplus benefitting consumers.
| Original language | English |
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| Place of Publication | Cambridge, MA |
| Publisher | MIT Center for Energy and Environmental Policy Research (CEEPR) |
| Number of pages | 52 |
| Publication status | Published - 13 Apr 2023 |
| MoE publication type | D4 Published development or research report or study |