Electricity Marginal Cost Pricing: Applications in Eliciting Demand Responses
- 6h 35m
- Monica Greer
- Elsevier Science and Technology Books, Inc.
- 2012
Packed with case studies and practical real-world examples, Electricity Marginal Cost Pricing Principles allows regulators, engineers and energy economists to choose the pricing model that best fits their individual market.
Written by an author with 13 years of practical experience, the book begins with a clear and rigorous explanation of the theory of efficient pricing and how it impacts investor-owned, publicly-owned, and cooperatively-owned utilities using tried and true methods such as multiple-output, functional form, and multiproduct cost models. The author then moves on to include self-contained chapters on applying estimating cost models, including a cubic cost specification and policy implications while supplying actual data and examples to allow regulators, energy economists, and engineers to get "a feel" for the methods with which efficient prices are derived in today's challenging electricity market. The book is accompanied by a companion website which will allow for the testing of methods and validating results.
- A guide to cost issues surrounding the generation, transmission, and distribution of electricity
- Clearly explains cost models which can yield the marginal cost of supplying electricity to end-users
- Real-world examples that are practical, meaningful, and easy to understand
- Explains the policy implications of each example
- Provide suggestions to aid in the formation of the optimal market price
In this Book
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Introduction
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The Theory of Natural Monopoly and Literature Review
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U.S. Electric Markets, Structure, and Regulations
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The Economics (and Econometrics) of Cost Modeling
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Cost Models
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Case Study1—A Multiproduct Cubic Cost Model to Estimate the Marginal Cost of Distributing Electricity in the United States: An Application to Rate Making and the Reduction of Greenhouse Gas Emissions
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Case Study: Cost Models to Illustrate KLEM Data
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Efficient Pricing of Electricity
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Price and Substitution Elasticities of Demand: How Are They Used and What Do They Measure?—A Review of Demand Models and the Relevant Literature
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Time-of-Use Case Study
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References
