# Complementarity and Market Power in Electricity Supply Chains

> **NSF 01002526DB NSF RESEARCH & RELATED ACTIVIT** · University of Maryland, College Park (MD) · $416,000

## Abstract

This research seeks to understand the economics of supply chains where complementary suppliers may have market power. The objectives of this research are to evaluate the economic efficiency of the U.S. coal supply chain over the last thirty years, accounting for complementarities and market power, and to understand how efficiencies might have been impacted by changes in supplier market structure (e.g. mergers between coal suppliers), changes in the competitiveness of coal (e.g. after the U.S. natural gas boom), and the deregulation of wholesale electricity markets. These are important questions to address for this major industry. In this research, methods are developed that also could be applied in other industries. The research effort includes training of Ph.D. students, coordination of activities across schools at a land grant public university, and the presentation of the results to a wide range of stakeholders.

The research involves three related projects that are made possible by combining confidential data on railroad shipments and power plant purchases of coal and transportation. Project 1 uses reduced-form econometric techniques to describe how shocks to electricity demand, shocks to electricity generating costs, and upstream shocks to the mining and railroad industries feed through into input prices and quantities. The results are interpreted through the lens of a theoretical models based on Cournot (1838) and Spulber (2017), which identify the possible effects of

## Key facts

- **NSF award ID:** 2447007
- **Awardee organization:** University of Maryland, College Park (MD)
- **SAM.gov UEI:** NPU8ULVAAS23
- **PI:** Andrew T Sweeting
- **Primary program:** 01002526DB NSF RESEARCH & RELATED ACTIVIT
- **All programs:** GRADUATE INVOLVEMENT
- **Estimated total:** $416,000
- **Funds obligated:** $416,000
- **Transaction type:** Standard Grant
- **Period:** 06/01/2025 → 05/31/2028

## Primary source

NSF Award Search: https://www.nsf.gov/awardsearch/showAward?AWD_ID=2447007

## Citation

> US National Science Foundation, Award 2447007, Complementarity and Market Power in Electricity Supply Chains. Retrieved via AI Analytics 2026-06-07 from https://api.ai-analytics.org/grant/nsf/2447007. Licensed CC0.

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