IDEAS home Printed from https://ideas.repec.org/a/cdh/backgr/124.html
   My bibliography  Save this article

The Price Isn't Right: The Need for Reform in Consumer Electricity Pricing

Author

Listed:
  • Donald N. Dewees

    (University of Toronto)

Abstract

Electricity prices should fully link the consumer price to peak-period generation costs, environmental costs and the high cost of new generation, according to an expert analysis released today by the C.D. Howe Institute. The author says such pricing reform is required to reduce both financial and electrical stress on the system and help prepare Ontario – and other provinces – for the rising costs of new generation.

Suggested Citation

  • Donald N. Dewees, 2010. "The Price Isn't Right: The Need for Reform in Consumer Electricity Pricing," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 124, January.
    • Handle: RePEc:cdh:backgr:124
    as

    Download full text from publisher

    File URL: https://www.cdhowe.org/public-policy-research/price-isnt-right-need-reform-consumer-electricity-pricing
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Laidler, 2009. "Getting Talk Back on Target: The Exchange Rate and the Inflation Rate," e-briefs 89, C.D. Howe Institute.
    2. Kathleen Spees & Lester Lave, 2008. "Impacts of Responsive Load in PJM: Load Shifting and Real Time Pricing," The Energy Journal, , vol. 29(2), pages 101-122, April.
    3. Jean-Thomas Bernard & Jean-Yves Duclos, 2009. "Quebec's Green Future: The Lowest-Cost Route to Green Gas Reductions," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 118, October.
    4. Adam Aptowitzer, 2009. "Bringing the Provinces Back In: Creating a Federated Canadian Charities Council," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 300, November.
    5. Keith Ambachtsheer, 2009. "Pension Reform: How Canada can Lead the World," Benefactors Lecture 2009, C.D. Howe Institute.
    6. Jean Boivin, 2009. "Getting it Right When You Might Be Wrong: The Choice Between Price-Level and Inflation Targeting," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 297, September.
    7. Colin Busby & William B.P. Robson & Pierre-Marcel Desjardins, 2009. "Stress Test: Demographic Pressures and Policy Options in Atlantic Canada," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 120, November.
    8. Bev Dahlby & Michael Smart & Benjamin Dachis, 2009. "New Housing and the Harmonized Sales Tax: Lessons from Ontario," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 119, October.
    9. Benjamin Dachis, 2009. "A Clean Canada in a Dirty World: The Cost of Climate-Related Border Measures," e-briefs 90, C.D. Howe Institute.
    10. Alexandre Laurin & William B.P. Robson, 2009. "Supersized Superannuation: The Startling Fair-Value Cost of Federal Government Pensions," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 122, December.
    11. Nick Le Pan, 2009. "Look Before You Leap: A Skeptical View of Proposals to Meld Macro- and Microprudential Regulation," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 296, September.
    12. Bev Dahlby, 2009. "Once on the Lips, Forever on the Hips: A Benefit-Cost Analysis of Fiscal Stimulus in OECD Countries," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 121, December.
    13. Malcolm Burrows, 2009. "Unlocking More Wealth: How to Improve Federal Tax Policy for Canadian Charities," e-briefs 86, C.D. Howe Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Philippe Bergevin, 2010. "Addicted to Ratings: The Case for Reducing Governments’ Reliance on Credit Ratings," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 130, May.
    2. William B.P. Robson & Colin Busby, 2010. "Freeing up Food: The Ongoing Cost, and Potential Reform, of Supply Management," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 128, April.
    3. Donald Dewees & Trevor Tombe, 2011. "The Impact of Sub-Metering on Condominium Electricity Demand," Canadian Public Policy, University of Toronto Press, vol. 37(4), pages 435-457, December.
    4. William B.P. Robson, 2010. "Cutting Through Pension Complexity: Easy Steps Forward for the 2010 Federal Budget," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 126, February.
    5. Henning Bjornlund, 2010. "The Competition for Water: Striking a Balance among Social, Environmental, and Economic Needs," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 302, April.
    6. Colin Busby & William B.P. Robson, 2010. "Target Practice Needed: Canada’s 2010 Fiscal Accountability Rankings," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 129, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Colin Busby, 2010. "Supporting Employees who Deploy: The Case for Financial Assistance to Employers of Military Reservists," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 123, January.
    2. Lawson A.W. Hunter, Q.C. & Edward Iacobucci & Michael J. Trebilcock, 2010. "Scrambled Signals: Canadian Content Policies in a World of Technological Abundance," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 301, January.
    3. William B.P. Robson, 2010. "Cutting Through Pension Complexity: Easy Steps Forward for the 2010 Federal Budget," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 126, February.
    4. Alexandre Laurin & William B.P. Robson & Colin Busby & Finn Poschmann, 2010. "Back to Balance: A Shadow Federal Budget for 2010," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 127, February.
    5. Henning Bjornlund, 2010. "The Competition for Water: Striking a Balance among Social, Environmental, and Economic Needs," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 302, April.
    6. William B.P. Robson & Colin Busby, 2010. "Freeing up Food: The Ongoing Cost, and Potential Reform, of Supply Management," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 128, April.
    7. Martin Cave & Adrian Foster, 2010. "Solving Spectrum Gridlock: Reforms to Liberalize Radio Spectrum Management in Canada in the Face of Growing Scarcity," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 303, May.
    8. Krishnamurti, Tamar & Schwartz, Daniel & Davis, Alexander & Fischhoff, Baruch & de Bruin, Wändi Bruine & Lave, Lester & Wang, Jack, 2012. "Preparing for smart grid technologies: A behavioral decision research approach to understanding consumer expectations about smart meters," Energy Policy, Elsevier, vol. 41(C), pages 790-797.
    9. Chou, Jui-Sheng & Tran, Duc-Son, 2018. "Forecasting energy consumption time series using machine learning techniques based on usage patterns of residential householders," Energy, Elsevier, vol. 165(PB), pages 709-726.
    10. Angelo Melino, 2011. "Moving Monetary Policy Forward: Why Small Steps - and a Lower Inflation Target - Make Sense for the Bank of Canada," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 319, January.
    11. Daniel Adelman & Canan Uçkun, 2019. "Dynamic Electricity Pricing to Smart Homes," Operations Research, INFORMS, vol. 67(6), pages 1520-1542, November.
    12. Oleksiy Kryvtsov, 2016. "Is there a quality bias in the Canadian CPI? Evidence from microdata," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(4), pages 1401-1424, November.
    13. Carlo Fezzi & Derek Bunn, 2010. "Structural Analysis of Electricity Demand and Supply Interactions," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(6), pages 827-856, December.
    14. Joshua M. Pearce & Nelson Sommerfeldt, 2021. "Economics of Grid-Tied Solar Photovoltaic Systems Coupled to Heat Pumps: The Case of Northern Climates of the U.S. and Canada," Energies, MDPI, vol. 14(4), pages 1-17, February.
    15. Bigerna, Simona & Hagspiel, Verena & Kort, Peter M. & Wen, Xingang, 2023. "How damaging are environmental policy targets in terms of welfare?," European Journal of Operational Research, Elsevier, vol. 311(1), pages 354-372.
    16. Alexandre Laurin & William B.P. Robson, 2011. "Ottawa's Pension Gap: The Growing and Under-reported Cost of Federal Employee Pensions," e-briefs 127, C.D. Howe Institute.
    17. Jacob Mays & Diego Klabjan, 2017. "Optimization of Time-Varying Electricity Rates," The Energy Journal, , vol. 38(5), pages 67-92, September.
    18. Philippe Bergevin & William B.P. Robson, 2011. "The Costs of Inflexible Indexing: Avoiding the Adverse Fiscal Impacts of Lower Inflation," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 322, February.
    19. Galo, Joaquim J.M. & Macedo, Maria N.Q. & Almeida, Luiz A.L. & Lima, Antonio C.C., 2014. "Criteria for smart grid deployment in Brazil by applying the Delphi method," Energy, Elsevier, vol. 70(C), pages 605-611.
    20. John Beshears & James J. Choi & Joshua Hurwitz & David Laibson & Brigitte C. Madrian, 2015. "Liquidity in Retirement Savings Systems: An International Comparison," American Economic Review, American Economic Association, vol. 105(5), pages 420-425, May.

    More about this item

    Keywords

    Economic Growth and Innovation; electricity pricing; Province of Ontario; conservation; environmental cost; real-time pricing;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdh:backgr:124. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kristine Gray (email available below). General contact details of provider: https://edirc.repec.org/data/cdhowca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.