Latin American Economic Review (LAER) is an international, refereed open-access journal dedicated to publishing in English original academic research on economics, with rigorous theoretical and methodological standards. ...

We have constructed a model to analyze the incentives for expansion of electricity supply in the spot market and the capacity in the long run reserve market. With this model we also analyze the incentives for collusion in ...

We apply the price model in Brito and Rosellón (2002) to a 40 MW solar power project in North West Mexico designed to export electricity to the Californian market. Technology used is thin film photovoltaic solar cells in ...

Even though the evidence on the benefits of privatization around the world has been established in the literature in a robust manner, public opinion surveys show a widely negative perception of the reform process in Latin ...

We examine regulation of distribution tariffs in the Mexican natural gas industry. Average revenue in each period is constrained not to exceed an upper bound and is calculated as the ratio of total revenue to output in the ...

There is a growing interest, both in theory and practice, on the variables that determine investments in electricity transmission. The way to resolve short-term congestion is known from the literature on power flows, nodal ...

This paper looks at various models that address strategic behavior in the supply of gas. The paper has three very strong technical results. First, the netback pricing rule leads to discontinuities in Pemex's revenue function. ...

We propose a combined merchant-regulatory framework for incentives to expand the large interregional transmission links of the Mexican transmission network. We make an initial implementation of a pricing two-part tariff ...

We propose a merchant mechanism to expand electricity transmission based on long-term financial transmission rights (FTRs). Due to network loop flows, a change in network capacity might imply negative externalities on ...

This paper studies the electricity market design long run problem of ensuring enough generation capacity to meet future demand (resource adequacy). Reforms processes worldwide have shown that the market itself is not always ...