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Marginal Cost Pricing and Social Investment Criteria for Electricity Undertakings

In: Project Evaluation

Author

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  • Arnold C. Harberger

    (University of Chicago)

Abstract

Marginal cost pricing—which for many years appeared to be something of a theoretician’s toy, with little application to reality—has been the subject of revived interest in recent years, largely as the result of the efforts by Electricité de France to put the precept into practice. In this paper, we will review the basic principles governing the marginal cost pricing of electricity, and shall attempt to elaborate upon them at a few critical points.

Suggested Citation

  • Arnold C. Harberger, 1972. "Marginal Cost Pricing and Social Investment Criteria for Electricity Undertakings," Palgrave Macmillan Books, in: Project Evaluation, chapter 0, pages 233-247, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-01653-2_9
    DOI: 10.1007/978-1-349-01653-2_9
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    Cited by:

    1. Glenn Jenkins & Chun-Yan Kuo & Arnold C. Harberger, 2011. "Cost-Benefit Analysis for Investment Decisions: Chapter 19 (An Integrated Appraisal of Combined Cycle Versus Single Cycle Electricity Generations Technologies)," Development Discussion Papers 2011-19, JDI Executive Programs.
    2. Glenn Jenkins & Chun-Yan Kuo & Arnold C. Harberger, 2011. "Cost-Benefit Analysis for Investment Decisions: Chapter 11 (Economic Prices for Non-Tradable Goods and Services)," Development Discussion Papers 2011-11, JDI Executive Programs.

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