MODELING ENERGY TECHNOLOGIES IN A COMPETITIVE MARKET

Energy/economic models must predict the mix of energy technologies in competitive energy markets. We examine a market composed of several co mpeting technologies with geographically heterogeneous cost distributi ons. An approach for determining both the market share and average mar ket cost of energy produced by these technologies is derived. The form alism developed, which is based on a conditional least cost distributi on function, can be used to correct the conventional logit treatment o f these quantities in several existing models and to better interpret empirical data in order to determine more realistic cost distribution functions for energy technologies.