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- W2341498249 abstract "Most energy economists believe that locational marginal pricing, or LMP, offers an optimal signal for generation expansion. This belief is based upon inappropriate application of marginal analysis to lumpy generation investment. Because LMP signals are marginal, they cannot signal provide an accurate signal as to how much generation capacity is needed. And because LMPs are calculated incrementally, in the extreme case of a jump discontinuity, LMPs may actually send a false positive signal of the need for new investment. This paper demonstrates by counterexample that LMP need not provide socially optimal signals for generation investment, calling into question one of the foundational arguments for LMP." @default.
- W2341498249 created "2016-06-24" @default.
- W2341498249 creator A5090583926 @default.
- W2341498249 date "2009-04-08" @default.
- W2341498249 modified "2023-09-25" @default.
- W2341498249 title "The (In)Ability of LMP to Send True Price Signals for Generation Investment" @default.
- W2341498249 hasPublicationYear "2009" @default.
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