Cena węgla brunatnego jako wyznacznik podziału zysku w układach kopalń i elektrowni. Część I – Propozycje podziału

Lignite price as a determinant of the split of profit in systems of mines and power plants. Part I – Split of profit proposals

Leszek Jurdziak ()

MPRA Paper from University Library of Munich, Germany

Abstract: Different structures of lignite mines and power stations, which have appeared on the Polish market as a result of its transformation and the privatisation, were discussed. The attention is focused on the fact that the practice is overtaking the theory because there is lack of models of functioning of such structures. A model of cooperation between the mine and the power station was worked out for the established amount of coal what can describe the situation of particular ultimate pit choice (in long run) or realization of supplies of the constant amount of lignite in frames of the long-term contract (in short run e.g. one of year). It is proposed to treat a negotiation of the lignite price as a constant sum game and a lignite price as the determinant of the total profit division. The choice of lignite price between prices outlining break-even points of the mine and the power station determines the distribution of the profit to both sides. It is similar to the contract curve in the classical bilateral monopoly model. Ten different methods of the profit division are proposed. Argumentation speaking for proposed solutions was presented favouring the pro-posal of equal profit margins calculated without the costs of fuel purchase.

Keywords: Bilateral monopoly; pit optimisation; bargaining; price negotiation; fair division; Nash bargaining solution; Kalai-Smorodinsky solution; lignite price; lignite mine; lignite power plant; coal mine; coal power plant (search for similar items in EconPapers)
JEL-codes: C7 C71 C72 C78 D4 D43 D86 L0 L10 L13 L14 L22 L42 L72 L94 Q31 Q32 Q41 R32 (search for similar items in EconPapers)
Date: 2006-11-01, Revised 2007-03-27
New Economics Papers: this item is included in nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Górnictwo i geologia IX (Mining and geology IX) Prace Naukowe Instytutu Górnictwa Politechniki Wrocławskiej Nr 118 (Scientific Papers of the Institute of Mining of the Wroclaw Univ. of Technology No.118).Seria:(2007): pp. 43-57

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