A Structural Model to Evaluate the Transition from Self-Commitment to Centralized Unit Commitment

Borradores de Economia
Number: 
922
Published: 
Classification JEL: 
Q40, Q42, Q49, L11, L5, L89
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy
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We introduce a dispatch model of Colombia's independent system operator (XM) in order to study the relative merits of self-commitment vs. centralized unit comment. We capitalize on the transition that took place in 2009 from self-unit commitment to centra