Working Paper No. 1242

Transmission Network Investment across National Borders: The Liberalized Nordic Electricity Market

Published: October 17, 2018Pages: 36Keywords: Coalition formation; Cross-border transmission investment; Multilateral bargaining; Nordic electricity market, Shapley ValueJEL-codes: C71; F15; L43; L94

Transmission Network Investment across National Borders: The Liberalized Nordic Electricity Market Lars Persson and Thomas Tangerås


The world’s first multinational electricity market was formed with the creation of the Nordic power exchange, Nord Pool. We analyze the incentives to undertake transmission network investment in the context of the liberalized Nordic electricity market. Welfare improving investment in a multinational electricity market requires accounting for the cross-border effects of capacity expansion.

We propose methods to increase voluntary cooperation on international infrastructure projects, with an aim to increase aggregate efficiency and achieve equitable distribution of the gains from market integration.​

Lars Persson

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Ph: +46 8 665 4504
lars.persson@ifn.se

Thomas Tangerås

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Ph: +46 8 665 4526
Mob: +46 70 727 5448
thomas.tangeras@ifn.se

Interdisciplinary European Studies

The European Union and the Return of the Nation State

9783030350048_200x_the-european-union-and-the-return-of-the-nation-state.jpg

This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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