Explorations in Economic History. Apr2017, Vol. 64, p53-61. 9p.
Electric rates, Electricity, and Electric power consumption
In this paper, we quantify the difference between public and private prices of residential electricity immediately before and after major federal reforms in the 1930s and 1940s. Previous research found that public prices were lower in a sample of large, urban markets. Based on new data covering over 15,000 markets and nearly all electricity generated for residential consumption, we find that the difference between public and private prices was small in 1935 and negligible in 1940 for typical levels of monthly consumption. These findings are consistent with a market for ownership that helped to discipline electricity prices during this period. That is, private rents were mitigated by the threat that municipalities would use public ownership to respond to constituent complaints and public rents were limited by electoral competition and the growth of private provision. [ABSTRACT FROM AUTHOR]
Cost effectiveness, Electric rates, Renewable portfolio standards, Electric generators, Intermittency (Nuclear physics), and Electric power systems
Abstract: Renewable electricity policies promote investment in renewable electricity generators and have become increasingly common around the world. Because of intermittency and the composition of other generators in the power system, the value of certain renewable – particularly wind and solar – varies across locations and technologies. This paper investigates the implications of this heterogeneity for the cost effectiveness of renewable electricity policies. A simple model of the power system shows that renewable electricity policies cause different investment mixes. Policies also differ according to their effect on electricity prices, and both factors cause the cost effectiveness to vary across policies. We use a detailed, long-run planning model that accounts for intermittency on an hourly basis to compare the cost effectiveness for a range of policies and alternative parameter assumptions. The differences in cost effectiveness are economically significant, where broader policies, such as an emissions price, outperform renewable electricity policies. [Copyright &y& Elsevier]