Peak Load Pricing and Capacity Planning with Demand and Supply Uncertainty
AbstractThe peak load pricing problem has been discussed quite extensively in the literature. Central to the problem is the choice of output capacity and price for a basically nonstorable commodity such as electricity. This article considers both uncertain demand and uncertain capacity simultaneously in a simple model and generalizes earlier analyses, notably in two respects. First, we examine the demand uncertainty in a more general framework within which previous specifications of demand uncertainty can be seen as special cases. Second, we take explicit account of the random availability of the installed capacity. New insights are obtained and discussed in this article.
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Bibliographic InfoArticle provided by The RAND Corporation in its journal Bell Journal of Economics.
Volume (Year): 14 (1983)
Issue (Month): 1 (Spring)
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- Yang, Liu & Dong, Ciwei & Wan, C.L. Johnny & Ng, Chi To, 2013. "Electricity time-of-use tariff with consumer behavior consideration," International Journal of Production Economics, Elsevier, vol. 146(2), pages 402-410.
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- Stephan Spiecker & Volker Eickholt, 2013. "The Impact Of Carbon Capture And Storage On A Decarbonized German Power Market," EWL Working Papers 1304, University of Duisburg-Essen, Chair for Management Science and Energy Economics, revised Oct 2013.
- Spiecker, Stephan & Vogel, Philip & Weber, Christoph, 2013. "Evaluating interconnector investments in the north European electricity system considering fluctuating wind power penetration," Energy Economics, Elsevier, vol. 37(C), pages 114-127.
- N. Vijayaymohanan Pillai, 2002. "Reliability and rationing cost in a power system," Centre for Development Studies, Trivendrum Working Papers 325, Centre for Development Studies, Trivendrum, India.
- Richard Arnott, 1992. "Information and Usage of Congestible Facilities Under Free Access," Discussion Papers 974, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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