The Problems of Peak Loads and Inventories

D.T. Nguyen

Bell Journal of Economics, 1976, vol. 7, issue 1, 242-248

Abstract: Following their contribution to the debate on public utility, peak load, and electricity pricing, M.A. Crew and P.R. Kleindorfer published a note giving a set of conditions for efficient allocation of desired outputs, over n subperiods, among m plants, having constant average running and capacity costs. This paper extends their framework to accommodate the case in which the storing of products over the off-peak periods is feasible and derives the new set of optimal conditions. It is shown that, with storage facilities, fewer plants will in general be used and peak price will be lower than otherwise and that considerable welfare benefits can be obtained.

Date: 1976
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://links.jstor.org/sici?sici=0361-915X%2819762 ... O%3B2-D&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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:rje:bellje:v:7:y:1976:i:spring:p:242-248

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in Bell Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().