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A Spatial Equilibrium Analysis of Electrical Energy Pricing and Allocation

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  • Noel D. Uri

Abstract

Based upon a spatial equilibrium model, this study argues that society can gain with increased regional coordination of generation and transmission activities of the U.S. electrical energy industry. In 1973 society suffered a loss in welfare because of minimal regional coordination, reflecting that consumers in regions where relatively inexpensive electrical energy was available were permitted to consume more and pay less than what would have been optimal at the expense of consumers in less efficient producing regions. The policy implications suggest that regional coordination be more actively pursued, involving the use of legislated authority by the Federal Power Commission.

Suggested Citation

  • Noel D. Uri, 1976. "A Spatial Equilibrium Analysis of Electrical Energy Pricing and Allocation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(4_Part_1), pages 653-662.
    • Handle: RePEc:oup:ajagec:v:58:y:1976:i:4_part_1:p:653-662.
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    File URL: http://hdl.handle.net/10.2307/1238808
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    Cited by:

    1. Cardell, Judith B. & Hitt, Carrie Cullen & Hogan, William W., 1997. "Market power and strategic interaction in electricity networks," Resource and Energy Economics, Elsevier, vol. 19(1-2), pages 109-137, March.
    2. James Wesley Burnett & Xueting Zhao, 2017. "Spatially Explicit Prediction of Wholesale Electricity Prices," International Regional Science Review, , vol. 40(2), pages 99-140, March.

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