Pricing issues in the energy sector: on an integrated multi-level optimisation approach to efficient pricing Online publication date: Mon, 14-Jul-2014
by Sardar M.N. Islam
International Journal of Global Energy Issues (IJGEI), Vol. 8, No. 5/6, 1996
Abstract: The government controls some energy prices either through taxes or subsidies (indirect control), or through direct regulation (direct control). At a particular period of time, the government may adopt both these methods of price control. This paper demonstrates that it is possible to formulate an energy pricing model which produces results (market prices and shadow prices) useful for formulating both these types of energy pricing policies.
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