We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Economies of Scale and Utilization: An Analysis of the Multi-Plant Generation Costs of the....
- Authors
Bateson, Jeff; Swan, Peter L.
- Abstract
We examine the average costs of electricity generated in NSW at the site level, employing a new simultaneous-equations model approach. Further, we argue that costs depend principally on unit size and capacity utilization. We reinterpret capacity utilization as a compositional variable which is a continuous proxy for the (inverse of) the intensity of demand for electricity, thus partially addressing the multi-product nature of electricity. Low capacity utilization corresponds to intense demands and hence peaking output. We find that costs per kWh, as conventionally measured, are highly sensitive to the degree of capacity utilization but less so to unit size (scale). The results emphasize the need for time-related pricing.
- Subjects
NEW South Wales; ELECTRIC utilities; ELECTRICITY; COST
- Publication
Economic Record, 1989, Vol 65, Issue 191, p329
- ISSN
0013-0249
- Publication type
Article
- DOI
10.1111/j.1475-4932.1989.tb00686.x