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Understanding the limits to forming policy-driven markets in the electricity sector

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IIT-21-190R.pdf (483.3Kb)
Date
2021-09-01
Author
Valor Martínez, Carmen
Lind, Leandro
Cossent Arín, Rafael
Escudero Guirado, Carmen
Estado
info:eu-repo/semantics/publishedVersion
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Abstract
 
 
The formation of policy-pushed markets has been underexamined in the transition literature, despite their importance for achieving sustainability policy objectives and their greater risk of failure. This study draws from service-dominant logic, i.e., a marketing-originated meta-theory of markets, to explain why one of these policy-pushed markets—local energy flexibility markets—may not develop. In particular, we show that to decide whether to participate in these policy-pushed markets, market actors assess the resources available to them, anticipate the required interactions to integrate resources, and forecast potential value formation. Actors’ limited ability to identify or access resources, andor their unwillingness or inability to interact with other actors to integrate resources explain why value processes do not unfold so that the market does not develop. We also demonstrate that existing institutional arrangements may limit actors’ agency to access to resources or coordinate value flows, which prevents the policy-pushed market from self-adjustment.
 
URI
https:doi.org10.1016j.eist.2021.10.022
Understanding the limits to forming policy-driven markets in the electricity sector
Tipo de Actividad
Artículos en revistas
ISSN
2210-4224
Materias/ categorías / ODS
Instituto de Investigación Tecnológica (IIT)
Palabras Clave

Sustainable markets; Service-dominant logic; Resource integration; Electricity markets; Energy industry
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