The economic rationale for the deregulation of electricity generation

1 Electricity Markets:

a Describe the economic rationale for the deregulation of electricity generation

b Describe some features of electricity that make it susceptible to market power

c Describe some reasons why electricity prices (wholesale) skyrocketed in 2000?

2 CA Water and Public Enterprise:

a How do the incentives under public enterprise differ from those under private ownership of a natural monopoly?

b Please provide an example aside from CA water of public enterprise?

c Does the current system of water supply in CA achieve allocative efficiency? Why or why not?

3 Climate Change and Market Based Approaches:

a Please describe some of the critical features of the Paris Climate Agreement

b Please describe why economists would advocate for a carbon tax over a renewable portfolio standard to address greenhouse gas emissions?