Effects of reforming electricity rates on employment levels in New York State: a multisectoral analysis
The principal objective of this study is to develop an analytical tool for evaluating the economic consequences of reforming electricity rates in New York State. Earlier efforts at modelling within the state have concentrated on the broader economic aggregates such as gross state product, unemployment, and inflation. The study on the other hand, seeks to develop a methodology for examining the economic impact of electricity rate reform at a detailed, sectoral level. A multi-dimensional model is developed with submodels of sectoral output pricing, production, final demand, and factor demand. On the production side, fixed coefficient and Cobb-Douglas production functions are used as alternatives. On the demand side, personal consumption expenditures are specified as functions of prices and personal income. The main conclusion of the study is that the introduction of efficient electricity pricing can result in higher levels of employment with the same level of personal income, particularly with the Cobb-Douglas specification. This result, however, is not indifferent to the manner in which the new rate structures are introduced. Unless excess revenues accruing to the utilities as a result of rate reform are re-injected into the expenditure-income stream, the effect on employment can be negative.
- Research Organization:
- Cornell Univ., Ithaca, NY (USA)
- OSTI ID:
- 5048170
- Resource Relation:
- Other Information: Thesis (Ph. D.)
- Country of Publication:
- United States
- Language:
- English
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