A Simple Method for Evaluating the Marginal Cost of Unsupplied Electricity
A method for calculating the marginal cost of industrial power cuts is developed. Firms are assumed to hedge against outages by acquiring back-up generators. The marginal cost of back-up power enables us to infer the marginal cost of a power cut.
Volume (Year): 13 (1982)
Issue (Month): 1 (Spring)
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