Should electricity markets have a capacity requirement? If so, how should it be priced?

Adam B. Jaffe, Frank A. Felder

Research output: Contribution to journalArticle

26 Scopus citations


The possibility of non-market-clearing situations in power systems implies that there is a positive social externality associated with construction of capacity or reduction in peak load. In deciding whether and how to internalize this externality, the policy debate should focus on determining the optimal level of reliability and the best way to achieve it.

Original languageEnglish (US)
Pages (from-to)52-60
Number of pages9
JournalElectricity Journal
Issue number10
Publication statusPublished - Dec 1 1996
Externally publishedYes


All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Energy (miscellaneous)
  • Management of Technology and Innovation
  • Law

Cite this