Regional Electricity Pricing With Ramsey Approach: Tehran Case Study

Hamidreza Hajibabaei and Davood Manzoor ()

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2014, vol. 4, issue 3, 182-186

Abstract: In developing countries electricity power is not only used for energy’s demand responding, but also an essential element of developing. Furthermore the government pricing has comprehensive effect on economy of developing countries due to huge ratio of their governments. So in these countries the electricity pricing could affect welfare and development simultaneously. Therefore we use welfare maximizing as one of the most prevalent method for optimal price detection. As Ramsey rule (which is derived from welfare maximizing) is used in increasing return to scale situations it would be proper for natural monopoly position (that exist in electricity market). Elasticity and marginal cost is required to use Ramsey rule therefore we use Philippine rule and panel data approach to determine elasticity. We also use average cost and rate of return degree to detect marginal cost. Using these two numbers will eventually result in Ramsey prices. Finally we will drive that electricity prices should increase while steps differences should decrease.

Keywords: Optimal pricing; Ramsey model; electricity prices (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hrmars.com/hrmars_papers/Article_19_Regiona ... _Ramsey_Approach.pdf (application/pdf)
http://hrmars.com/hrmars_papers/Article_19_Regiona ... _Ramsey_Approach.pdf (text/html)

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:hur:ijaraf:v:4:y:2014:i:3:p:182-186

Access Statistics for this article

More articles in International Journal of Academic Research in Accounting, Finance and Management Sciences from Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences
Bibliographic data for series maintained by Hassan Danial Aslam ().