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    Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/107444

    Title: A Comparison of Electricity-Pricing Schemes: Equity, Cost-Recovery, and Economic Efficiency
    Authors: Hung, Ming-Feng;Chie, Bin-Tzong;Liao, Huei-Chu
    Keywords: residential electricity;efficiency;affordability;cost recovery;consumer’s surplus;floating increasing-block pricing
    Date: 2016-06-29
    Issue Date: 2016-08-18 13:41:09 (UTC+8)
    Abstract: Electricity pricing is the main economic instrument used to charge for residential
    electricity and to manage its consumption. A regulated price in general cannot reflect
    the true value of electricity. However, a market-based electricity-pricing scheme for
    residential electricity is efficient while it is also criticized due to its unaffordability to
    the poor. This article empirically compares four electricity-pricing schemes, namely,
    increasing-block pricing (IBP), floating increasing-block pricing (FIBP), free market
    pricing (FMP), and a price-cum-trade incentive system (PTS), in terms of the aspects
    of efficiency, equity, and cost recovery by using electricity-related data for Taiwan.
    The research results show that IBP and FIBP suffer from the same problem in that it is
    hard to be cost-neutral, and FMP is economically efficient while preferring utility to
    the households. PTS performs the best, in that it can be economically efficient, as well
    as cost-neutral, and it can also improve income distribution.
    Relation: Western Economic Association International 91st Annual Conference
    Appears in Collections:[Graduate Institute & Department of Industrial Economics] Proceeding

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