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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)

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
    DOI: 10.1111/j.1465-7287.2007.00083.x
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    References listed on IDEAS

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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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