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Energy Markets and Principles of Energy Pricing

  • Subhes C. Bhattacharyya
Chapter

Abstract

This chapter introduces the economic concepts related to pricing of energy in different market conditions. The chapter starts with the basic competitive market model and discusses the extensions required to analyse specific features (such as indivisibility of capital, specificity of assets, capital intensiveness, etc.) of the energy sector. The chapter also covers the issue of market failure and presents the commonly used market interventions in such situations. The concept of cost-benefit analysis is used as the framework for most of the analysis.

Keywords

Marginal Cost Energy Sector Average Cost Supply Curve Marginal Revenue 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

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Further Reading

  1. Dahl C (2004) International energy markets, understanding pricing, policies and profits. PennWell, TulsaGoogle Scholar
  2. Datta-Chaudhuri M (1990) Market failure and government failure. J Econ Perspect 4(3):25–39Google Scholar
  3. Devarajan S, Fisher AC (1981) Hotelling’s economics of exhaustible resources: fifty years later. J Econ Lit 19:65–73Google Scholar
  4. Fisher AC (1981) Chapter 2. In: Fisher AC (ed) Resource and environmental economics. Cambridge University Press, LondonGoogle Scholar
  5. Krautkraemer JA (1998) Non-renewable resource scarcity. J Econ Lit 36:2065–2107Google Scholar
  6. Robinson C (2004) Markets, imperfections and the dangers of over-regulating energy markets. Econ Aff June:52–55Google Scholar

Copyright information

© Springer-Verlag London Limited 2011

Authors and Affiliations

  1. 1.Centre for Energy, Petroleum and Mineral Law and Policy, University of DundeeDundeeUK

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