Feasibility Analysis of Transmission Investment Commercialization Based on Market Failures

摘要

Since the reliability of electricity supply is embedded with properties of public goods, market failures should be taken into consideration of ensuring the reliability by transmission investment commercialization. Both public goods and externalities are market failures according to economics. This paper, in view of public goods, analyzes the pros and cons of government intervention in electricity market, and the feasibility of transmission investment commercialization. In addition, investment incentives and the internalization are discussed from the view of externalities.