Mario Samano

Associate Professor of Economics at HEC Montreal

[EIA @EIAgov]

59% of utility-scale U.S. #batterystorage capacity was used for price arbitrage in 2021, up from 17% in 2019.

https://t.co/1Yu2Y4IjnI

[Nat Bullard @NatBullard]

Yesterday in California: batteries dispatched more energy to the grid than nuclear power for 10 minutes (19:30 to 19:40)

[UC3M Economics @EconomicsUc3m]

Many congratulations to @EnergyEcoLab team members and collaborators for their 3 new forthcoming papers!

@NataliaFabra @gllobet @imelda_econ Stefan Lamp @msamano6

[CIRANO @CIRANOMTL]

« Market Power and Renewables: The Effects of Ownership Transfers » by @msamano6 @HEC_Montreal @CIRANOMTL and colleagues @IA4EE

[Lenny Bronner @lennybronner]

If machine learning were called predictive optimization and neural networks were stacked regressions then we wouldn't even be having this conversation

[JAERE @JaereAere]

☀️ Just accepted ☀️ in @JaereAere:

"(Mis)allocation of Renewable Energy Sources" by Stefan Lamp (@EnergyEcoLab) and @msamano6.

Read it here: https://t.co/ohQUMejCxl

[Matt Levine @matt_levine]

I can imagine circumstances where people get pretty angry with this newsletter. https://t.co/KeLoT3qdvY

[Khoa Vu @KhoaVuUmn]

Live footage of the Revise and Resubmit process at an economics journal

[Ivan Rudik @ivanjrudik]

Mainstream physicists are blind when it comes to quantum mechanics. They're so attached to Newtonian physics and entrenched with the Bohr model that they are incapable of seeing that GPS satellites and MRI machines work.

[Arizona Economics @UArizonaEcon]

Celebrating our job market candidates: 🧵

[Mario Samano @msamano6]

Last, we estimate the impact of the batteries output on wholesale eqm prices by using an IV strategy and find that batteries output reduce prices by 0.8% in 2018-2019.
As the share of storage output increases over time, these effects will become even more relevant.

[Mario Samano @msamano6]

In a new WP with Stefan Lamp
https://t.co/5kwbztyGKh
we take a look at the aggregate output of lithium-ion batteries in California. The correlations of output and wholesale electricity prices suggest arbitrage behavior:
1/n

[Mario Samano @msamano6]

Then using a simple optimization model for a median-sized battery installation that maximizes profits taken wholesale prices as given, the optimal output follows a very similar pattern as with the observed data:
2/n

[Scott Kerr @scott_kerr]

Enormous xylophone in the woods of Kyushu, Japan plays a Bach tune when a wooden ball rolls down each "key." An impressive piece of engineering.

[Paul A. Sarkis @pasarkis]

(Bonus result: the more diversified a firm gets following the transfer, the higher the price increase. s/o @DrDaronAcemoglu, A. Kakhbod and A. Ozdaglar (2019) for coming up with the theoretical version of this result) (7/n)

[Mario Samano @msamano6]

My paper with @pasarkis

[IAEE @IA4EE]

Using Ontario data, new paper shows that merit order effect (lowest price producers bid first, pushing price down) is mitigated by market power, leading to smaller price drops. Especially important after capacity increase, reshuffling of assets.
https://t.co/6QfC5egmPF

[Mario Samano @msamano6]

Allowing for asymmetries of adoption of the competitor's installed base can lead in some cases to market dominance by the laggard...

[Mario Samano @msamano6]

My new forthcoming paper at the JEDC studies the set of long run market configurations that can be obtained using the Ericson-Pakes model of dynamic quality ladder with and without product compatibility externalities.

[Mario Samano @msamano6]

When adding endogenous product compatibility the map of market of mkt structures changes for the same parameter values