Template-Type: ReDIF-Article 1.0
Author-Name:  Claude Crampes and Nils-Henrik M. von der Fehr
Title:  Decentralised Cross-Border Interconnection
Classification-JEL: F0
Volume:  Volume 44
Issue:  Number 4
Year:  2023
Abstract:  Reaping the full benefits from cross-border interconnection typically requires reinforcement of national networks. When the relevant parts of the networks are complements, a lack of coordination between national transmission system operators results in investment below optimal levels in both interconnectors and national infrastructure. A subsidy to financially sustain interconnector building is not sufficient to restore optimality; indeed, even when possible, such subsidisation may have to be restrained so as not to encourage cross-border capacities that will not be fully utilised due to lack of investment in national systems.
Handle: RePEc:aen:journl:ej44-4-Fehr
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=4031
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