here's Hal Varian from yesterday's (7/1/04's) NY TIMES:
The economics of the California gasoline market are described in a
recent study by Severin Borenstein, James Bushnell and Matthew Lewis of
the University of California Energy Institute (www.ucei.org/PDF
/csemwp132.pdf).
The basic problem
I am not an expert, but I would think that the decision of Shell to shut
down the Bakersfield refinery sounds quite similar to what our friends
at Enron did during the energy crisis here. Over to Gene Coyle now.
Devine, James wrote:
here's Hal Varian from yesterday's (7/1/04's) NY TIMES:
The
Borenstein and Bushnell still insist that the market works for electric
power! Everything, for them, comes down to supply and demand.
Remarkably, in 2004 (below) they seem to have discovered that
withholding capacity can prop up high gasoline prices. This is a real
breakthrough for the UC
