The Effects of Environmental Quality Standards on Pricing Electrical Energy
Bibliographic Data
| ID | 7761144 |
|---|---|
| Authors | N D Uri (Electric Power Analysis Division, Federal Energy Administration, Washington DC, 20461, USA, corresponding author) |
| Year | 1976 |
| Volume | 8 |
| Issue | 5 |
| Pages | 573-580 |
| Publication date | 1976-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Environment and Planning A Economy and Space (JOURNAL) |
| Journal identifiers | ISSN: 0308-518X • E-ISSN: 1472-3409 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1068/a080573 |
| OpenAlex | W1966541412 |
| Language | EN |
| References cited | 2 |
In this paper the effects of implementing environmental quality standards on the pricing of electrical energy is discussed. In a situation where the maximization of social welfare is the objective, the price, in any period, is set equal to the operating cost plus explicit and implicit environmental-quality costs plus amortization on any new generating capacity. Further, a sufficiently high combination of costs to meet environmental quality standards will result in an earlier retirement of existing capacity than would otherwise have been the case. In a profit-maximizing situation in which profit is subject to a return-on-investment constraint, the imposition of these standards leads, via the Averch—Johnson effect, to a larger investment in new generating capacity
Amortization · Business · Economics · Environmental economics · Environmental quality · Industrial organization · Maximization · Microeconomics · Profit maximization · Social Welfare · Climate Change Policy and Economics · Energy Efficiency and Management · Finance
| Citation velocity | historical |
|---|---|
| Highly cited | No |