Premium
OPTIMAL SPATIAL TARIFFS OF JOINT PRODUCTS: THE PLANNING OF A COGENERATION AND DISTRICT‐HEATING PROJECT
Author(s) -
Fisch Oscar
Publication year - 1985
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1985.tb00858.x
Subject(s) - interdependence , subsidy , economics , equity (law) , microeconomics , electricity , cogeneration , environmental economics , economies of agglomeration , econometrics , natural resource economics , electricity generation , market economy , power (physics) , physics , electrical engineering , quantum mechanics , political science , law , engineering
It is assumed here that utility districts supplying both electricity and heating, given their institutional and physical environments, can be considered in terms of continuous, spatially‐differentiated markets in which different consumers can be charged different prices for each of the joint products. An optimal spatial pricing rule is derived from a given spatial distribution of demand and income, a given normative function of distributional equity, and an assumption of spatially interdependent supply costs. In addition, the optimal size of the central cogenerating plant and the optimal size of the district are simultaneously derived. Finally, in the feasibility analysis, the possibility of cross‐subsidization is introduced.