Production inefficiency in the peak-load pricing model

Conference · Sat Oct 01 04:00:00 EDT 1977 · South. Econ. J.; (United States)

OSTI ID:5433032

Berkowitz, M K ^[1]; Jen, F C

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1. Univ. of Toronto

The implications of pricing electricity on the basis of peak-load demand are examined in a model which introduces the factors of scale economies and periods of unequal duration. The author points out that new technologies to replace fossil-fueled steam generation with nuclear, photovoltaic or other energy sources will introduce new opportunities for scale economies. The impact of regulatory bias on peak-load prices indicates that there is benefit only to the peak users unless ex ante substitution allows prices to be reduced for non-peak periods. More capital-intensive techniques are also induced by ex ante substitution. The model examines the effects of a range of regulatory constraints on production efficiency and the capital-labor ratio. 18 references. (DCK)

• OSTI ID: 5433032
• Conference Information: Journal Name: South. Econ. J.; (United States) Journal Volume: 44:2
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290100 -- Energy Planning & Policy-- Energy Analysis & Modeling
290200* -- Energy Planning & Policy-- Economics & Sociology
296000 -- Energy Planning & Policy-- Electric Power
CAPACITY
CAPITAL
CHARGES
ECONOMETRICS
ECONOMIC IMPACT
ECONOMICS
ELECTRIC POWER
FOSSIL-FUEL POWER PLANTS
GOVERNMENT POLICIES
LABOR
LOAD MANAGEMENT
MANAGEMENT
MATHEMATICAL MODELS
PEAK-LOAD PRICING
POWER
POWER DEMAND
POWER PLANTS
PRODUCTIVITY
PUBLIC UTILITIES
REGULATIONS
THERMAL POWER PLANTS