Problems of marginal-cost pricing and its progeny. [Also project-incremental and user-priority-incremental pricing]

Journal Article · Thu Oct 12 04:00:00 EDT 1978 · Public Util. Fortn.; (United States)

OSTI ID:6785977

Anderson, R K

The author discusses three rate-setting methods that have been suggested for improving the efficiency of an important resource, natural gas: marginal-cost pricing, project incremental pricing, and end-use incremental pricing (as proposed in the National Energy Plan). The article questions whether any of these pricing proposals is justified because of the demonstrated uncertainties that they can accomplish their stated objectives. He questions the efficiency of piecemeal attempts to simulate marginal costs as a resource-allocation technique unless all energy prices are marginal-cost priced. Each of the proposals will lead to economic dislocations and hardships on certain consumers.

• Research Organization: American Gas Association, Washington, DC
• OSTI ID: 6785977
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 102:8; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
294003 -- Energy Planning & Policy-- Natural Gas
ALLOCATIONS
CHARGES
COMPARATIVE EVALUATIONS
ECONOMIC ANALYSIS
ECONOMIC IMPACT
ECONOMICS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INCREMENTAL-COST PRICING
MARGINAL-COST PRICING
NATURAL GAS
PRICES
RATE STRUCTURE
REGULATIONS
SOCIAL IMPACT