Heterogeneous users and the peak-load-pricing model

Journal Article · Tue Feb 01 04:00:00 EST 1983 · Q. J. Econ.; (United States)

DOI:https://doi.org/10.2307/1885570· OSTI ID:6215093

Jordan, W J

The principal finding of this paper is that the conventional pricing solution for the peak-load pricing problem must be modified to be applicable to a joint facility that is utilized by heterogeneous groups of users. The paper indicates how extending the conventional model through a multidimensional approach to capacity, accounting for its physical dimensions as well as its time dimension, will require specific capacity charges to users independent of the time of consumption. Any additional congestion charges levied will not perform the conventional role of covering replacement capacity costs, but will be used to reduce current congestion costs. 6 references, 1 figure.

• Research Organization: Seaton Hall Univ., South Orange, NJ
• OSTI ID: 6215093
• Journal Information: Q. J. Econ.; (United States), Journal Name: Q. J. Econ.; (United States) Vol. 98:1; ISSN QJECA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
CAPACITY
ECONOMETRICS
ECONOMICS
LOAD MANAGEMENT
MANAGEMENT
MARGINAL-COST PRICING
PEAK-LOAD PRICING
PRICES
PUBLIC UTILITIES
RATE STRUCTURE