On Public Utility Pricing and Forgone Economic Benefits
Jean-Thomas Bernard () and
Robert Cairns
Canadian Journal of Economics, 1987, vol. 20, issue 1, 152-63
Abstract:
G. Jenkins (1985) argues that the special relationships between the provincial governments and their publicly-owned electric utilities have led to overuse of capital in the electric power industry and hence to significant economic waste. His analysis ignores the particular circumstances of electricity price setting in the Canadian institutional context. Furthermore, he borrows two key technological parameters from a U.S. study: scale economies and factor substitution. He neglects the important role played in Canada by hydro resources. Other estimates exist suggesting that Jenkins's evaluation most probably errs on the high side.
Date: 1987
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