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Windfalls and other profits

  • Verbruggen, Aviel
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    "Windfall profits" again is a popular term, but mostly the term is used inappropriately. This short article discusses why, and proposes a more complete taxonomy of profits. There exists little ground and need for policy to act against genuine windfalls, while the contrary holds for other excessive earnings. Very few windfalls, freely fallen down from winds in the sky, occur after observed excessive profits are stripped from deliberate man-made interventions. That is why clear identification and correct language are needed.

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    File URL: http://www.sciencedirect.com/science/article/B6V2W-4SWXDKY-2/2/26d8e827d619e3ac2c70ba5edbd29073
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    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 36 (2008)
    Issue (Month): 9 (September)
    Pages: 3249-3251

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    Handle: RePEc:eee:enepol:v:36:y:2008:i:9:p:3249-3251
    Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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    1. Sijm, J. & Neuhoff, K. & Chen, Y., 2006. "CO2 cost pass through and windfall profits in the power sector," Cambridge Working Papers in Economics 0639, Faculty of Economics, University of Cambridge.
    2. Thomas, Steve, 2003. "The Seven Brothers," Energy Policy, Elsevier, vol. 31(5), pages 393-403, April.
    3. Domanico, Fabio, 2007. "Concentration in the European electricity industry: The internal market as solution?," Energy Policy, Elsevier, vol. 35(10), pages 5064-5076, October.
    4. repec:cup:cbooks:9780521283946 is not listed on IDEAS
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