Publications / Research Papers
Cost-benefit analysis of the Central and Eastern European electricity network investmentsCompetition and regulation 2013 - books, chaptersPublished: 1 of September, 2013

The focus of our review of the economic evaluation of eight electricity transmission investments in Central and Eastern Europe. Using our electrcity market model, we estimated the welfare effects of the selected projects and analysed the costs and incurred benefits for each country and stakeholder group (producers, consumers, TSOs). On the one hand, results support the hypothesis that benefits are reaped in an asymmetric manner in geographical sense, which may strongly inhibit the realisation of regionally beneficial projects. Ont he other hand, this highlights the need for a European remuneration mechanism to make investments with a positive welfare effect come to life in a faster pace.

The publication can be downloaded from the website of the Institute of Economics, Hungarian Academy of Sciences.