Transportation Fuels Policy Since the OPEC Embargo: Paved with Good Intentions
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Knittel_Transportation fuels.pdf
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451.07 KB
Format
Adobe PDF
Checksum (MD5)
f6d9dbe236b783747b40876d83122274
Author(s)
Knittel, Christopher Roland
Date Issued
May 2013
Journal
American Economic Review
Publisher
American Economic Association
Citation
Knittel, Christopher R. “Transportation Fuels Policy Since the OPEC Embargo: Paved with Good Intentions.” American Economic Review 103, no. 3 (May 2013): 344–349. © 2013 by the American Economic Association
Version
Final published version
Abstract
A long line of research investigates whether the retail prices of electricity and natural gas send proper signals about scarcity in order to induce efficient consumption. Historically, regulated utilities have not designed tariffs that set marginal prices equal to marginal costs. Currently, some jurisdictions are opening the retail sectors to competition via "retail choice." These new regimes replace imperfect regulation with imperfect competition as the process by which retail tariffs are formed. We discuss the challenges in evaluating the efficiency of tariffs and present evidence of how pricing has changed in markets with retail choice.
MIT Department
Sloan School of Management
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1257/aer.103.3.344
