Ever since electric power was generated, pricing of electricity proved to be a thorny issue. Thanks to the inputs of professional economists who did not enter the debate until the 1910s, there are two lines of argument that have shaped the orthodox view about rate setting in the power sector. One is related to the categorical imperitive that marginal cost (MC) pricing is first best on economic efficiency grounds. The other hinges on the problem that...
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INFORMATION
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1992/03/31
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Document de travail départemental
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10495
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1
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1
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2010/07/01
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Electricity pricing : conventional views and new concepts
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economies of scope
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