Anette Boom gets Otto Mønsted grant for research stay at Cambridge

CBS Department of Economics Associate Professor Anette Boom has received an Otto Mønsted grant of 50,000 DKK for a research stay at University of Cambridge where she will collaborate with her host, Professor David Newbery.

They both have a long standing interest in electricity markets. Boom’s research project focuses on the regulation and market design of electricity markets. She will be looking at the effects of specific capacity mechanisms on electricity prices, security of supply, and social welfare. These mechanisms have lately gained popularity in Europe because national regulators fear that subsidized entry of renewable energy makes traditional electricity providers unprofitable. To prevent closures of traditional electricity providers, Great Britain introduced a capacity market, fully effective in 2018, whereas Denmark implemented in 2015 for the first time a strategic reserve. How these mechanisms change the market outcomes, how much they cost the consumers compared to the created extra reliability of electricity provision, and how these national initiatives harm neighboring countries and the achievement of a common European electricity market, are still open questions that Anette Boom’s project tries to address.