Quotation Otruba, Heinrich, Luptacik, Mikulas. Forthcoming. Welfare Effects of Electricity Transit. Vienna: Research Institute for Regulatory Economics.




Welfare effects of electricity transit are systematically investigated using welfare maximization models. It can be shown that an optimal allocation can achieved iff marginal costs of electric energy including marginal costs of transit have to be paid by electricity importing companies. Transit countries should be fully compensated for transit costs including capital costs for the capacity required for electricity transit. This could be done by means of border auctions of transit capacity up to the point of sufficient transit capacity.


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Publication's profile

Affiliation WU
Type of publication Research report, expert opinion
Language English
Title Welfare Effects of Electricity Transit
Location Vienna
Academic institution Research Institute for Regulatory Economics
Year 2009


Otruba, Heinrich (Former researcher)
Luptacik, Mikulas (Details)
Research Institute for Regulatory Economics FI (Details)
Department of Economics (Crespo Cuaresma) (Details)
Department of Economics (Gugler) (Details)
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