The equity and efficiency of two-part tariffs in U.S. natural gas markets

Journal of Law and Economics

Volumn 55, Issue 1, 2011, Pages 75-128

  Borenstein, Severin ^a   Davis, Lucas W ^a  

^a UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84867608901     PISSN: 00222186     EISSN: None     Source Type: Journal    
DOI: 10.1086/661958     Document Type: Article

References (40)

1. American Gas Association. 2010. Decoupling and Natural Gas Utilities. Fact sheet. American Gas Association, Washington, D.C. February. http://www.aga.org/SiteCollectionDocuments/RatesReg/Issues/Revenue Decoupling and other Non-Volumetric RateDesigns/2010 20 Feb AGA Decoupling Fact Sheet.pdf.
2. Auerbach, Alan J., and Anthony J. Pellechio. 1978. The Two-Part Tariff and Voluntary Market Participation. Quarterly Journal of Economics 92:571-87.
3. Averch, Harvey, and Leland L. Johnson. 1962. Behavior of the Firm under Regulatory Constraint. American Economic Review 52:1052-69.
4. Ballard, Charles L., and Don Fullerton. 1992. Distortionary Taxes and the Provision of Public Goods. Journal of Economic Perspectives 6:117-31.
5. Baumol, William J., and David F. Bradford. 1970. Optimal Departures from Marginal Cost Pricing. American Economic Review 60:265-83.
6. Borenstein, Severin. 2012. The Redistributional Impact of Non-linear Electricity Pricing. American Economic Journal: Economic Policy 4:56-90.
7. Borenstein, Severin, Meghan Busse, and Ryan Kellogg. 2012. Career Concerns, Inaction, and Market Inefficiency: Evidence from Utility Regulation. Journal of Industrial Economics 60:220-48.
8. Borenstein, Severin, and Lucas Davis. 2010. The Equity and Efficiency of Two-Part Tariffs in U.S. Natural Gas Markets. Working Paper No. 214. University of California, Berkeley, Energy Institute at Haas, Berkeley.
9. Coase, R. H. 1946. The Marginal Cost Controversy. Economica, n.s., 13:169-82.
10. Cutler, David M., and Lawrence F. Katz. 1992. Rising Inequality? Changes in the Distribution of Income and Consumption in the 1980's. American Economic Review 82:546-51.
11. Davis, Lucas W. 2012. Evaluating the Slow Adoption of Energy Efficient Investments: Are Renters Less Likely to Have Energy Efficient Appliances? Chap. 19 in The Design and Implementation of U.S. Climate Policy, edited by Don Fullerton and CatherineWolfram. Chicago: University of Chicago Press.
12. Davis, Lucas W., and Erich Muehlegger. 2010. Do Americans Consume Too Little Natural Gas? An Empirical Test of Marginal Cost Pricing. RAND Journal of Economics 41:791-810.
13. Deaton, Angus, and John Muellbauer. 1980. Economics and Consumer Behavior. Cambridge: Cambridge University Press.
14. Dubin, Jeffrey A., and Daniel L. McFadden. 1984. An Econometric Analysis of Residential Electric Durable Good Holdings and Consumption. Econometrica 52:345-62.
15. Feenberg, Daniel, and Elisabeth Coutts. 1993. An Introduction to the TAXSIM Model. Journal of Policy Analysis and Management 12:189-94.
16. Feldstein, Martin. 1972. Equity and Efficiency in Public Sector Pricing: The Optimal Two- Part Tariff. Quarterly Journal of Economics 86:175-87.
17. Hausman, Jerry A. 1979. Individual Discount Rates and the Purchase and Utilization of Energy-Using Durables. Bell Journal of Economics 10:33-54.
18. Hotelling, Harold. 1938. The General Welfare in Relation to Problems of Taxation of Railway and Utility Rates. Econometrica 6:242-69.
19. Interagency Working Group on Social Cost of Carbon. 2010. Technical Support Document: Social Cost of Carbon for Regulatory Impact Analysis under Executive Order 12866. http://www.epa.gov/oms/climate/regulations/scc-tsd.pdf.
20. Ito, Koichiro. 2010. How Do Consumers Respond to Nonlinear Pricing? Evidence from Household Electricity Demand.Working Paper No. 210. University of California, Berkeley, Energy Institute at Haas, Berkeley.
21. Knittel, Chris R. 2003. Market Structure and the Pricing of Electricity and Natural Gas. Journal of Industrial Economics 60:167-91.
22. Marcus William, Greg Ruszovan, and Jeffrey Nahigian. 2002. Economic and Demographic Factors Affecting California Residential Energy Use. JBS Energy Inc., West Sacramento, Calif., September.
23. Naughton, Michael C. 1986. The Efficiency and Equity Consequences of Two-Part Tariffs in Electricity Pricing. Review of Economics and Statistics 68:406-14.
24. NERA Economic Consulting. 2007. Economic and Demographic Factors Affecting Arkansas Residential Energy Use. Report prepared for CenterPoint Energy. Included as Exhibit ADH-4 to Alan Henry, Supplemental Testimony on behalf of CenterPoint Arkla in Arkansas Public Service Commission Docket No. 06-161-U. NERA Economic Consulting, Boston. April 5.
25. Ng, Yew-Kwang, and Mendel Weisser. 1974. Optimal Pricing with a Budget Constraint: The Case of the Two-Part Tariff. Review of Economic Studies 41:337-45.
26. Oi, Walter Y. 1971. A Disneyland Dilemma: Two-Part Tariffs for a Mickey Mouse Monopoly. Quarterly Journal of Economics 85:77-96.
27. Poterba, James M. 1989. Lifetime Incidence and the Distributional Burden of Excise Taxes. American Economic Review 79:325-30.
28. Poterba, James M. 1991. Is the Gasoline Tax Regressive? Tax Policy and the Economy 5:145-64.
29. Ramsey, Frank. 1927. A Contribution to the Theory of Taxation. Economic Journal 37: 47-61.
30. Reiss, Peter C., and Matthew W. White. 2005. Household Electricity Demand, Revisited. Review of Economic Studies 72:853-83.
31. Schmalensee, Richard. 1981. Monopolistic Two-Part Pricing Arrangements. Bell Journal of Economics 12:445-66.
32. Sherman, Roger, and Michael Visscher. 1982. Rate-of-Return Regulation and Two-Part Tariffs. Quarterly Journal of Economics 96:27-42.
33. Snow, Arthur, and Ronald S. Warren Jr. 1996. The MarginalWelfare Cost of Public Funds: Theory and Estimates. Journal of Public Economics 61:289-305.
34. U.S. Bureau of the Census. 2006. Current Population Survey, 2006 Annual Social and Economic Supplement. Washington, D.C.: Government Printing Office.
35. U.S. Department of Energy. Energy Information Administration. 2003. Price Responsiveness in the AEO2003 NEMS Residential and Commercial Building Sector Models. U.S. Energy Information Administration, Washington, D.C. http://www.eia.gov/oiaf/analysispaper/elasticity/pdf/buildings.pdf.
36. U.S. Department of Energy. Energy Information Administration. 2005. Natural Gas Residential Choice Programs, U.S. Summary 2005. U.S. Energy Information Administration, Washington, D.C. http://www.eia.gov/oil_gas/natural_gas/restructure/historical/2005/restructure.html.
37. U.S. Department of Energy. Energy Information Administration. 2008. Natural Gas Annual Respondent Query System. EIA-176 Query System. U.S. Energy Information Administration,Washington, D.C. http://www.eia.gov/cfapps/ngqs/ngqs.cfm?f_reportpRP1.
38. U.S. Department of Energy. Energy Information Administration. 2010a. Natural Gas Annual 2008. DOE/EIA-0131. U.S. Energy Information Administration, Washington, D.C. http://www.eia.gov/naturalgas/annual/archive/2008/nga_2008.html.
39. U.S. Department of Energy. Energy Information Administration. 2010b. Natural Gas Data. http://www.eia.gov/naturalgas/data.cfm.
40. Viscusi, W. Kip, Joseph E. Harrington, Jr., and John M. Vernon. 2005. Economics of Regulation and Antitrust. Cambridge, Mass.: MIT Press.