Abstract
Using a multiperiod multiregional linear programming model of Canadian electric power supply allowing for technology choice and power transmission, we estimate the long-term gains from interregional trade in electrical energy. Measured in terms of supply cost reduction, these gains are substantial in absolute terms but proportionately small — about 5%. Other performance measures, however, such as aggregate coal consumption, uranium consumption, nuclear capacity expansion, and plant capital costs vary considerably between self-sufficiency for each region and complete interregional supply integration. Alternative objectives to minimum supply costs therefore acquire greater importance for selecting a socially optimal degree of regional cooperation.
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