| Article ID: | iaor20115816 |
| Volume: | 39 |
| Issue: | 7 |
| Start Page Number: | 3954 |
| End Page Number: | 3965 |
| Publication Date: | Jul 2011 |
| Journal: | Energy Policy |
| Authors: | Brennan Timothy J |
| Keywords: | economics |
• Subsidizing energy efficiency can promote monopsony, if efficiency and use are substitutes. • Renewable energy subsidies, portfolio standards, or feed‐in tariffs may also promote monopsony. • Effects require buyer‐side market power and ability to deny generators a reasonable return. • Monopsony is significant in light of whether antitrust should maximize consumer or total welfare.