Average Cost Pricing of Natural Gas

A Problem and Three Policy Options

Frank Camm

ResearchPublished 1978

Current regulation of wholesale and retail natural gas encourages overconsumption of gas and discourages desirable entry of solar heaters, heat pumps, and other "new" residential and commercial energy technologies. This report uses the tools of public finance to compare the desirability of three alternative policies with that of current regulation. The alternatives include marginal cost pricing with consumer compensation, average cost pricing with taxes and/or subsidies, and utility ownership of new energy technologies.

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Document Details

  • Copyright: RAND Corporation
  • Availability: Web Only
  • Year: 1978
  • Pages: 72
  • Document Number: R-2282-DOE

Citation

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Camm, Frank, Average Cost Pricing of Natural Gas: A Problem and Three Policy Options. Santa Monica, CA: RAND Corporation, 1978. https://www.rand.org/pubs/reports/R2282.html.
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