Estimating the Impact of Higher Electricity Rates on Intersectoral Prices: An Input-Output Approach

Randy F. Cray
Additional contact information
Randy F. Cray: University of Wisconsin-Stevens Point

The Review of Regional Studies, 1989, vol. 19, issue 2, 18-29

Abstract: A recent ruling by the United States Supreme Court makes it more likely than ever that the cost overruns associated with nuclear power plant construction will be passed on to consumers. The ruling of the court did not address the retail sale of electricity directly. However, an implication of the opinion is that wholesale electric price increases will be passed on to the final consumers. This paper employs an input-output framework, theRAS matrix updating technique, and an energy price model to determine the intersectoral price impact of an electric rate hike on a plains state economy. The purpose was to generate information on the process of price shock transmission throughout a regional economy and to identify the sectors most affected. Moreover, the upper limit of the price shock to the household sector also is discussed. The major findings of the paper are that the services sector is most affected by the electric rate hike and agriculture is least affected. Furthermore, the results indicate that no sector is significantly impacted. However, the cumulative result on households could be substantial and cause a reduction in their purchasing power.

Date: 1989
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://journal.srsa.org/ojs/index.php/RRS/article/view/19.2.3/pdf/ To View On Journal Page
http://journal.srsa.org/ojs/index.php/RRS/article/download/19.2.3/pdf/ To Download Article

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rre:publsh:v19:y:1989:i:2:p:18-29

Access Statistics for this article

The Review of Regional Studies is currently edited by Tammy Leonard & Lei Zhang and Lei Zhang

More articles in The Review of Regional Studies from Southern Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Tammy Leonard & Lei Zhang ().