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Is Flat Fair?

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  • Bunzl, Martin

Abstract

Dynamic pricing holds out the promise of shifting peak demand as well as reducing overall demand. But it also raises thorny issues of fairness. All practical pricing systems involve tradeoffs between equity and efficiency. I examine the circumstances under which equity ought to be allowed to trump efficiency and whether or not this constitutes a defense of flat pricing.

Suggested Citation

  • Bunzl, Martin, 2010. "Is Flat Fair?," The Electricity Journal, Elsevier, vol. 23(6), pages 8-12, July.
    • Handle: RePEc:eee:jelect:v:23:y:2010:i:6:p:8-12
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    Cited by:

    1. Simshauser, Paul, 2018. "Price discrimination and the modes of failure in deregulated retail electricity markets," Energy Economics, Elsevier, vol. 75(C), pages 54-70.
    2. Simshauser, Paul & Whish-Wilson, Patrick, 2017. "Price discrimination in Australia's retail electricity markets: An analysis of Victoria & Southeast Queensland," Energy Economics, Elsevier, vol. 62(C), pages 92-103.
    3. Roberts, Mike B. & Sharma, Arijit & MacGill, Iain, 2022. "Efficient, effective and fair allocation of costs and benefits in residential energy communities deploying shared photovoltaics," Applied Energy, Elsevier, vol. 305(C).

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