Differentiation of Electricity Prices: Role of Space and Institutions
The article discusses the empirical material based features of the functioning of spatially distributed power systems and the relevant markets in the «big» countries: Russia, USA, Canada and China. The following hypothesis are tested: 1 - inter-territorial differentiation of electricity prices is no...
| Main Authors: | , |
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| Format: | Article |
| Language: | Russian |
| Published: |
Economic Research Institute of the Far East Branch of the Russian Academy of Sciences
2016-03-01
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| Series: | Prostranstvennaâ Èkonomika |
| Subjects: | |
| Online Access: | http://spatial-economics.com/eng/images/spatial-econimics/1_2016/SE.2016.1.030-059.Dyomina,Minakir.pdf |
| _version_ | 1818229133124042752 |
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| author | Olga Valeryevna Dyomina Pavel Aleksandrovich Minakir |
| author_facet | Olga Valeryevna Dyomina Pavel Aleksandrovich Minakir |
| author_sort | Olga Valeryevna Dyomina |
| collection | DOAJ |
| description | The article discusses the empirical material based features of the functioning of spatially distributed power systems and the relevant markets in the «big» countries: Russia, USA, Canada and China. The following hypothesis are tested: 1 - inter-territorial differentiation of electricity prices is not an exclusive phenomenon of the industrial market failure in Russia, but describes the common pattern of the electricity market in the «big» countries; 2 - the formation of the institute of price discrimination of power consumers is caused by objective reasons (it has an objective character). It is shown that the objective differentiation of geographic conditions of the electrical energy generation, distribution and consumption in the «big» countries determines the presence of markets multiplicity, accompanied by prices levels multiplicity caused by multiple levels of production cost and electricity transmission, which is contrary to the principles of market competitiveness and social equity. The resolution of this contradiction in all countries above breeds preservation and even the strengthening of state electricity price regulation in the form of cross-subsidization. Cross-subsidization leads to price discrimination of consumers, forms of which vary depending on the institutional conditions that determine the specific mechanism and purpose of such discrimination: in Russia and in China - between groups of consumers; in the United States - between customers of different states; in Canada - existence in most provinces of vertically integrated companies which suggests the presence of price discrimination of electricity consumers |
| first_indexed | 2024-12-12T10:13:45Z |
| format | Article |
| id | doaj.art-6c73e5ef8a7242c9beee964a252a41d6 |
| institution | Directory Open Access Journal |
| issn | 1815-9834 2587-5957 |
| language | Russian |
| last_indexed | 2024-12-12T10:13:45Z |
| publishDate | 2016-03-01 |
| publisher | Economic Research Institute of the Far East Branch of the Russian Academy of Sciences |
| record_format | Article |
| series | Prostranstvennaâ Èkonomika |
| spelling | doaj.art-6c73e5ef8a7242c9beee964a252a41d62022-12-22T00:27:43ZrusEconomic Research Institute of the Far East Branch of the Russian Academy of SciencesProstranstvennaâ Èkonomika1815-98342587-59572016-03-011305910.14530/se.2016.1.030-059Differentiation of Electricity Prices: Role of Space and InstitutionsOlga Valeryevna Dyomina0Pavel Aleksandrovich Minakir1Economic Research Institute FEB RASEconomic Research Institute FEB RASThe article discusses the empirical material based features of the functioning of spatially distributed power systems and the relevant markets in the «big» countries: Russia, USA, Canada and China. The following hypothesis are tested: 1 - inter-territorial differentiation of electricity prices is not an exclusive phenomenon of the industrial market failure in Russia, but describes the common pattern of the electricity market in the «big» countries; 2 - the formation of the institute of price discrimination of power consumers is caused by objective reasons (it has an objective character). It is shown that the objective differentiation of geographic conditions of the electrical energy generation, distribution and consumption in the «big» countries determines the presence of markets multiplicity, accompanied by prices levels multiplicity caused by multiple levels of production cost and electricity transmission, which is contrary to the principles of market competitiveness and social equity. The resolution of this contradiction in all countries above breeds preservation and even the strengthening of state electricity price regulation in the form of cross-subsidization. Cross-subsidization leads to price discrimination of consumers, forms of which vary depending on the institutional conditions that determine the specific mechanism and purpose of such discrimination: in Russia and in China - between groups of consumers; in the United States - between customers of different states; in Canada - existence in most provinces of vertically integrated companies which suggests the presence of price discrimination of electricity consumershttp://spatial-economics.com/eng/images/spatial-econimics/1_2016/SE.2016.1.030-059.Dyomina,Minakir.pdfthe electricity gridenergy systemsprice discrimination of electricity consumersprice of electricitycostelectricity marketsgovernment regulationcross-subsidizationRussiaUSACanadaChina |
| spellingShingle | Olga Valeryevna Dyomina Pavel Aleksandrovich Minakir Differentiation of Electricity Prices: Role of Space and Institutions Prostranstvennaâ Èkonomika the electricity grid energy systems price discrimination of electricity consumers price of electricity cost electricity markets government regulation cross-subsidization Russia USA Canada China |
| title | Differentiation of Electricity Prices: Role of Space and Institutions |
| title_full | Differentiation of Electricity Prices: Role of Space and Institutions |
| title_fullStr | Differentiation of Electricity Prices: Role of Space and Institutions |
| title_full_unstemmed | Differentiation of Electricity Prices: Role of Space and Institutions |
| title_short | Differentiation of Electricity Prices: Role of Space and Institutions |
| title_sort | differentiation of electricity prices role of space and institutions |
| topic | the electricity grid energy systems price discrimination of electricity consumers price of electricity cost electricity markets government regulation cross-subsidization Russia USA Canada China |
| url | http://spatial-economics.com/eng/images/spatial-econimics/1_2016/SE.2016.1.030-059.Dyomina,Minakir.pdf |
| work_keys_str_mv | AT olgavaleryevnadyomina differentiationofelectricitypricesroleofspaceandinstitutions AT pavelaleksandrovichminakir differentiationofelectricitypricesroleofspaceandinstitutions |