Join us this Friday at 12:00p for the next CEnREP Colloquium!
Date & Time: Friday, January 24th, 12:00-1:00 PM
Location: Nelson Hall 2405
**Please note the change in location from the Fall 2019 colloquia location.**
Please join us this Friday for the next CEnREP Colloquium and brown-bag lunch, a forum for Agricultural and Resource Economics students, faculty, and alumni to present their research and receive feedback from their peers and professors. This week features the following presentation:
Abstract: We empirically examine the geographic variation in economic impacts of a significant electricity transmission capacity expansion project, the CREZ project in Texas, on the value of wind generation. Importantly, we extend the scope of canonical two-region trade models in economic theory onto multiple regions. We show that while, as predicted, the two regions directly affected by the expansion, the West and North zones, experience overall falling production costs and gains from trade, the marginal value of wind generation in the Houston zone declines post-CREZ. These effects are such that, across the region as a whole, the marginal value of wind with respect to production costs remains effectively the same before and after CREZ. Additionally, using machine learning classification techniques, we demonstrate that wind generation actually increases the likelihood of relatively higher prices in the Houston zone. These counter-intuitive generation cost and pricing patterns appear to be driven by changing power trade patterns and dynamic production constraints of thermal generators.
Read the paper here.
All students, faculty, and staff are welcome to attend!