Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210883 
Year of Publication: 
2018
Series/Report no.: 
IFN Working Paper No. 1242
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
The world's first multinational electricity market was formed with the creation of the Nordic power exchange, Nord Pool. We analyze the incentives to undertake transmission network investment in the context of the liberalized Nordic electricity market. Welfare improving investment in a multinational electricity market requires accounting for the cross-border effects of capacity expansion. We propose methods to increase voluntary cooperation on international infrastructure projects, with an aim to increase aggregate efficiency and achieve equitable distribution of the gains from market integration.
Subjects: 
Coalition formation
Cross-border transmission investment
Multilateral bargaining
Nordic electricity market
Shapley Value
JEL: 
C71
F15
L43
L94
Document Type: 
Working Paper

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