New PDF release: Elements of the Swiss Market for Electricity
By Massimo Filippini
1.1 fiscal matters to be analyzed This learn examines components of the Swiss marketplace for electrical energy: the residential electrical energy call for via time-of-use and the associated fee constitution of municipal electrical energy distribution utilities. The empirical result of call for and price elasticities permit the research of fascinating fiscal and coverage matters akin to the desirability of a frequent creation of time-of-use pricing for residential clients, the desirability of side-by-side festival within the distribution of electrical energy and, extra commonly, the industrial results of a discount of the weight issue and of mergers among electrical distribution utilities on bills. Desirability of time-of-use pricing within the final decade there was an intensifying debate in Switzerland approximately efficacy of electrical energy cost reforms with a view to increase the potency of electrical energy use. This debate was once initiated through major occasions. First, there has been an immense development of electrical energy intake. moment, the Chernobyl twist of fate in 1986 aroused frequent public quandary concerning the difficulties linked to nuclear energy and waste disposal. hence, in 1991 the Swiss voted, in a referendum, a lO-year moratorium at the 2 development of recent nuclear strength crops. furthermore, plans to extend construction of hydroelectric strength (construction of recent dams or increasing present ones) were stiffly adverse through environmental teams. those advancements have continually curtailed power enlargement of family electrical energy provide. therefore, Switzerland in the course of the iciness has to import electrical energy from overseas countries.
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Additional info for Elements of the Swiss Market for Electricity
47. Moreover, the cross-price elasticities were found to be generally negative and often statistically insignificant. There are several problems with the Hill et al. model. The loglinear specification, while less restrictive than other specifications, does not account for the restrictions imposed by economic consumer theory. In addition, we believe that the data set utilized by Hill et al. is characterised by the disadvantages presented above concerning data sets that are built on rate experiments.
4) gives the n (Marshallian) demand functions and the equilibrium value of A, as follows: (i = 1,2, .... 5) constitute the complete set of consumer demand functions, from which economic information on consumption behavior can be derived. The optimal quantity purchased of each commodity is expressed as a function of total expenditure and commodity prices. demand equations as functions of current prices and current total expenditure. 2. 24 Indirect utility function approach The indirect utility function expresses utility as a function of prices and total expenditure rather than quantities consumed directly.
Caves et al. (1987) Caves et al. specifically set out to analyze the residential electricity demand by time-of-use using the Hick's aggregation theorem of commodities. Using data on the electricity usage of each customer, which was monitored every fifteen minutes, and applying the Hicksian aggregation theory they were able to model the demand for six different electricity commodities although there were only two pricing periods (peak and offpeak). Caves et al.
Elements of the Swiss Market for Electricity by Massimo Filippini