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A Simple Method for Evaluating the Marginal Cost of Unsupplied Electricity

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Author Info

  • Benjamin Bental
  • S. Abraham Ravid

Abstract

A method for calculating the marginal cost of industrial power cuts is developed. Firms are assumed to hedge against outages by acquiring back-up generators. The marginal cost of back-up power enables us to infer the marginal cost of a power cut.

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Bibliographic Info

Article provided by The RAND Corporation in its journal Bell Journal of Economics.

Volume (Year): 13 (1982)
Issue (Month): 1 (Spring)
Pages: 249-253

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Handle: RePEc:rje:bellje:v:13:y:1982:i:spring:p:249-253

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Cited by:
  1. Rehana Siddiqui & Hafiz Hanzla Jalil & Muhammad Nasir & Wasim Shahid Malik, 2012. "The Cost of Unserved Energy: Evidence from Selected Industrial Cities of Pakistan," Working Papers id:4989, eSocialSciences.
  2. Piaszeck, Simon & Wenzel, Lars & Wolf, André, 2013. "Regional diversity in the costs of electricity outages: Results for German counties," HWWI Research Papers 142, Hamburg Institute of International Economics (HWWI).
  3. Roop Jyoti & Aygul Ozbafli & Glenn Jenkins, 2006. "The Opportunity Cost of Electricity Outages and Privatization of Substations in Nepal," Working Papers 1066, Queen's University, Department of Economics.
  4. Azam Chaudhry, 2010. "A Panel Data Analysis of Electricity Demand in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(Special E), pages 75-106, September.
  5. Musiliu 0. Oseni & Michael G. Pollitt, . "The Economic Costs of Unsupplied Electricty: Evidence from Backup Generation among African Firms," Cambridge Working Papers in Economics 1351, Faculty of Economics, University of Cambridge.
  6. Pablo Serra & Gabriel Fierro, 1996. "Outage Cost in Chilean Industry," Documentos de Trabajo 10, Centro de Economía Aplicada, Universidad de Chile.
  7. Yu, W. & Jamasb, T. & Pollitt, M., 2007. "Incorporating the Price of Quality in Efficiency Analysis: the Case of Electricity Distribution Regulation in the UK," Cambridge Working Papers in Economics 0736, Faculty of Economics, University of Cambridge.
  8. Adenikinju, Adeola F., 2003. "Electric infrastructure failures in Nigeria: a survey-based analysis of the costs and adjustment responses," Energy Policy, Elsevier, vol. 31(14), pages 1519-1530, November.
  9. Steinbuks, J. & Foster, V., 2010. "When do firms generate? Evidence on in-house electricity supply in Africa," Energy Economics, Elsevier, vol. 32(3), pages 505-514, May.
  10. Steinbuks, J., 2008. "Financial constraints and firms' investment: results of a natural experiment measuring firm response to power interruption," Cambridge Working Papers in Economics 0844, Faculty of Economics, University of Cambridge.
  11. Wenzel, Lars & Wolf, André, 2014. "Welfare implications of power rationing: An application to Germany," HWWI Research Papers 148, Hamburg Institute of International Economics (HWWI).

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