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The Impact Of Utility Deregulation In Arizona

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  • BRIAN P. MACFIE

Abstract

"This analysis assesses Arizona's short-run price response to utility energy deregulation in the commercial and industrial sectors and the long-term response to deregulated industrial utility prices. Using a standard utility industry approach, ordinary least squares regression confirms commercial/industrial utility prices remain inelastic and Arizona's deregulation efforts have not effectively promoted short-run price competition. Moreover, widening differences in utility rates could be a response to a stronger long-run price elastic effect across states. The findings suggest states not aggressively deregulating utility price to narrow artificial comparative price advantages could be at a competitive disadvantage for interstate manufacturing investment. "("JEL "Q41, Q48, Q40) Copyright (c) 2008 Western Economic Association International.

Suggested Citation

  • Brian P. Macfie, 2008. "The Impact Of Utility Deregulation In Arizona," Contemporary Economic Policy, Western Economic Association International, vol. 26(2), pages 335-350, April.
  • Handle: RePEc:bla:coecpo:v:26:y:2008:i:2:p:335-350
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    References listed on IDEAS

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    1. Casler, Stephen D., 1992. "Energy demand and the composition of output growth," Journal of Environmental Economics and Management, Elsevier, vol. 22(2), pages 114-133, March.
    2. Justman, Moshe, 1994. "The Effect of Local Demand on Industry Location," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 742-753, November.
    3. Bernanke, Ben S, 1983. "On the Sources of Labor Productivity Variation in U.S. Manufacturing, 1947-1980," The Review of Economics and Statistics, MIT Press, vol. 65(2), pages 214-224, May.
    4. Beierlein, James G & Dunn, James W & McConnon, James C, Jr, 1981. "The Demand for Electricity and Natural Gas in the Northeastern United States," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 403-408, August.
    5. Thompson, Peter & Taylor, Timothy G, 1995. "The Capital-Energy Substitutability Debate: A New Look," The Review of Economics and Statistics, MIT Press, vol. 77(3), pages 565-569, August.
    6. Lester D. Taylor, 1975. "The Demand for Electricity: A Survey," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 74-110, Spring.
    7. Jason P. Martinek & Michael J. Orlando, 2002. "Do primary energy resources influence industry location?," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 27-44.
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    More about this item

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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