Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/59614 
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper No. 1544
Publisher: 
Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science, Evanston, IL
Abstract: 
Smart Grid (SG) technologies may bring substantial advantages to society, but the required investments are also sizable. This paper establishes a framework for examining the issues related to the SG, and highlights some of the difficulties in establishing a mechanism for paying SG costs. In particular, we show that generators will lose profits as a direct effect of demand response initiatives, and most of the benefits of SG cannot be easily converted into payments.
Document Type: 
Working Paper

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