Distributional implications of reducing interstate energy price differences
A model of state residential energy consumption for electricity, natural gas, and petroleum examines scenarios which reflect the response to a reduction in regional price differences attributable to deregulation. The results indicate that natural gas deregulation will benefit eastern and northwestern consumers at the expense of middle and western consumers. The deregulation of bulk electric power also benefits the east coast, but rising electricity prices would outweigh any benefits for the northwest. In contrast, electricity producers in the west have the most to gain from deregulation of bulk power transmissions because of the opportunities of a national market. A deregulated environment will likely have less dramatic distributional consequences from future energy price shocks, while increased fuel competition will probably limit price movements in any one fuel. 3 figures, 5 tables.
- Research Organization:
- Federal Reserve Bank of Dallas, TX
- OSTI ID:
- 7172881
- Journal Information:
- Econ. Rev.; (United States), Journal Name: Econ. Rev.; (United States)
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
ENERGY EXPENSES
ECONOMIC ANALYSIS
REGIONAL ANALYSIS
RESIDENTIAL SECTOR
DEREGULATION
ELECTRIC POWER
ENERGY CONSUMPTION
NATURAL GAS
PETROLEUM
PRICES
SIMULATION
ECONOMICS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
POWER
290200* - Energy Planning & Policy- Economics & Sociology