Abstract: This study conducts simulation analyses to find the
optimal debt ceiling of Taiwan, while factoring in welfare
maximization under a dynamic stochastic general equilibrium
framework. The simulation is based on Taiwan's 2001 to 2011
economic data and shows that welfare is maximized at a debt/GDP
ratio of 0.2, increases in the debt/GDP ratio leads to increases in both
tax and interest rates and decreases in the consumption ratio and
working hours. The study results indicate that the optimal debt ceiling
of Taiwan is 20% of GDP, where if the debt/GDP ratio is greater than
40%, the welfare will be negative and result in welfare loss.
Abstract: This paper presents the influence of distributed generation (DG) on congestion and locational marginal price (LMP) in an optimal power flow (OPF) based wholesale electricity market. The problem of optimal placement to manage congestion and reduce LMP is formulated for the objective of social welfare maximization. From competitive electricity market standpoint, DGs have great value when they reduce load in particular locations and at particular times when feeders are heavily loaded. The paper lies on the groundwork that solution to optimal mix of generation and transmission resources can be achieved by addressing congestion and corresponding LMP. Obtained as lagrangian multiplier associated with active power flow equation for each node, LMP gives the short run marginal cost (SRMC) of electricity. Specific grid locations are examined to study the influence of DG penetration on congestion and corresponding shadow prices. The influence of DG on congestion and locational marginal prices has been demonstrated in a modified IEEE 14 bus test system.