ARE Ph.D. student Stuart Morrison presented his work on customer responses to variable electricity pricing in Australia. It is becoming increasingly common for energy providers to charge residential consumers a price that is driven by daily electricity markets, rather than a conventional, flat fee. Economic theory suggests that residential consumers will adjust their behavior as prices change throughout the day. But there are many margins along which this adjustment might occur.

Matt Dudek presented his work on the impact of grid-scale battery storage capacity on electricity prices in California. A key barrier to expanding renewable energy production is the daily mismatch between intermittent generation and electricity demand. For example, despite a massive expansion in the low marginal cost solar power production, electricity can only be produced from these sources when the sun is shining.

This week, Reid Taylor presented his recent research, which delves into the impact of entry and market power on fuel prices in California. This study was prompted by recent policy changes aimed at limiting the establishment of new gas stations in specific areas across the state. These policies, designed to curtail carbon emissions, are expected to exert an influence on the market power of existing fuel retailers and, in turn, the prices of fuel for consumers.