ISSN: 2225-8329
Open access
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.
Nelson, J. P., Mark, J. R., Emsley, P. T. (1987). “An Analysis of Ramsey Pricing in Electric Utilities.” In Regulating Utilities in an Era of Deregulation, ed. Michael Crew, 85-110. New York: Macmillan.
Filippini, M. (1998). “Are Municipal Electricity Distribution Utilities National Monopolies?” Annals of Public Cooperative Economics, 69, 157-174.
EIA [Energy Information Administration]. (2000). “The Changing Structure of the Electric Power Industry 2000: An Update.” Energy Information Administration, U.S. Department of Energy: No. DOE/EIA-0562(00).
Cowern, E/ H. (2001). “Power and Energy: Factors that Determine Industrial Electric Bills.” The Cowern Papers presented by Motors and Drives, LLC.
Filippini, Wild, and Kuenzle, M. (2001). “Scale and Cost Efficiency in the Swiss Electricity Distribution Industry: Evidence from a Frontier Cost Approach.” CEPE Working Paper No. 8.
Borenstein, S. (2002). “The Trouble with Electricity Markets: Understanding California’s restructuring Disaster.” The Journal of Economic Perspectives, 16(1): 191-211.
Van Biesebroeck, J. (2004). “Robustness of Productivity Estimates.” National Bureau of Economic Research, Inc., NBER Working Papers: No. 10303.
Borenstein, S., and Stephen, P. H. (2005). “On the Efficiency of Competitive Electricity Markets with Time-Invariant Retail Prices.” The RAND Journal of Economics, 36(3): 469-93.
Joskow, P. L. (2005). “The Difficult Transition to Competitive Electricity Markets in the United States.” In Electricity Deregulation: Choices and Challenges, ed. J. Griffin and S. Puller, 31-97. Chicago: University of Chicago Press.
Davis, S. J., Grim, C., Haltiwanger, J., and Streitwieser, M. (2007a). “Electricity Pricing to U.S. Manufacturing Plants, 1963-2000.” U.S. Census Bureau, Center for Economic Studies, Working Paper No. CES 07-28, October.
Davis, S. J., Grim, C., Haltiwanger, J., and Streitwieser, M. (2007b). “Prices and Quantities of Electricity in the U.S. Manufacturing Sector: A Plant-Level Database and Public-Release Statistics, 1963-2000.” November.
BILGILI, M. (2009). estimation of the net electricity consumption of Turkey, Cukurova University, Adana Vocational School of Higher Education, J. of Thermal Science and Technology, 29, 2, 89-98.
Ishi, K., & Fred, J. (2010). Modeling and Forecasting Electricity Demand in the Philippines. The International Monetary Fund.
Jamil, F., & Ahmad, E. (2010). The relationship between electricity consumption, electricity prices and GDP in Pakistan, Energy Policy.
In-Text Citation: (Hajibabaei & Manzoor, 2014)
To Cite this Article: Hajibabaei, H., & Manzoor, D. (2014). Regional Electricity Pricing With Ramsey Approach: Tehran Case Study. International Journal of Academic Research in Accounting Finance and Management Sciences, 4(3), 248–253.
Copyright: © 2014 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode