The Competitive Effects of Transmission Infrastructure in the Indian Electricity Market
利用印度电力市场的机密竞价数据，估计了输电容量扩张对市场效率的影响，发现增加输电容量可使市场剩余提高22%，其中三分之一来自卖方对更一体化电网的响应。
The integration of markets may improve efficiency by lowering costs or reducing local market power. India, seeking to reduce electricity shortages, set up a new power market, in which transmission constraints sharply limit trade between regions. During congested hours, measures of market competitiveness fall and firms raise bid prices. I use confidential bidding data to estimate the costs of power supply and simulate market outcomes with more transmission capacity. Counterfactual simulations show that transmission expansion increases market surplus by 22 percent, enough to justify the investment. One-third of this gain is due to sellers’ response to a more integrated grid.