ITAM's Economic Research Center (CIE), invites you to the virtual seminar.
Invited: Gordon Leslie from Monash University (Australia).
He will talk about his tilte: "Start-up Costs and Market Power: Lessons from the Renewable Energy Transition"
Abstract:
Firms expect to recover the fixed costs required to start production by earning positive operating profits in subsequent periods. We develop a dynamic measure of competition that accounts for start-up costs, showing that static markups overstate the rents attributable to market power in an electricity market where power plants frequently stop and start production in response to output from solar panels. We estimate that increases in solar capacity correspond to increases in the aggregate operating profits earned by fossil-fuel plants because competition softens at sunset – plants displaced by solar during the day must incur start-up costs to compete in the evening.
The meeting will be held via Zoom in the following link:
Join Zoom Meeting
https://itam.zoom.us/j/99693669571?pwd=cmRTS3dTVUNjNUZjZG9tV0daZ1JEUT09
Meeting ID: 996 9366 9571
Passcode: 268203