OPTIMAL SPATIAL TARIFFS OF JOINT PRODUCTS: THE PLANNING OF A COGENERATION AND DISTRICT‐HEATING PROJECT

Oscar Fisch

Papers in Regional Science, 1985, vol. 57, issue 1, 63-73

Abstract: ABSTRACT It is assumed here that utility districts supplying both electricity and heating, given their institutional and physical environments, can be considered in terms of continuous, spatially‐differentiated markets in which different consumers can be charged different prices for each of the joint products. An optimal spatial pricing rule is derived from a given spatial distribution of demand and income, a given normative function of distributional equity, and an assumption of spatially interdependent supply costs. In addition, the optimal size of the central cogenerating plant and the optimal size of the district are simultaneously derived. Finally, in the feasibility analysis, the possibility of cross‐subsidization is introduced.

Date: 1985
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https://doi.org/10.1111/j.1435-5597.1985.tb00858.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:presci:v:57:y:1985:i:1:p:63-73

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