Neoclassical approach to peak-load pricing. [Users in all periods contribute toward cost of capacity]

Journal Article · · Bell J. Econ. Manage. Sci.; (United States)

OSTI ID:7223417

Panzar, J C

The well-known result that optimal peak-load pricing requires only users who utilize plants to capacity to bear any fraction of the capacity costs is shown to result from the technological assumptions of the traditional literature and not from the fundamental nature of the peak-load problem. When a neoclassical technology is specified, optimal pricing requires that users in all periods contribute toward the cost of capacity.

• Research Organization: Bell Telephone Labs., Holmdel, NJ
• OSTI ID: 7223417
• Journal Information: Bell J. Econ. Manage. Sci.; (United States), Journal Name: Bell J. Econ. Manage. Sci.; (United States) Vol. 7:2; ISSN BJEMA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
CHARGES
COMMUNICATIONS
CORRELATIONS
DECISION MAKING
ECONOMIC ELASTICITY
ENERGY CONSUMPTION
INDUSTRIAL PLANTS
INDUSTRY
MATHEMATICAL MODELS
OPTIMIZATION
PEAK-LOAD PRICING
PRODUCTION
PUBLIC UTILITIES
REGULATIONS
SIMULATION
TECHNOLOGY ASSESSMENT