Will Electricity Market Reform Likely Reduce Retail Rates?

被引:0
作者
Woo, C.K.
Zarnikau, Jay
机构
关键词
Average cost - Cost rates - Economics analysis - Electricity market reforms - Marginal costs - Public support - Simple++ - Status quo;
D O I
10.1016/j.tej.2009.01.003
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学科分类号
摘要
To win public support, proponents for electricity market reform to introduce competition often promise that the post-reform retail rates will be lower than the average embedded cost rates that would have prevailed under the status quo of a regulated monopoly. A simple economic analysis shows that such a promise is unlikely to occur without the critical assumption that the post-reform market has marginal costs below average costs. © 2009 Elsevier Inc. All rights reserved.
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页码:40 / 45
页数:5
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