This paper concerns marginal cost pricing in a capacity expansion problem for the electric utility industry. We develop a characterization of equipment selection and marginal capital cost allocation based on an optimal capacity plan, in the context of either a finite, discretely distributed...

There have been several comprehensive studies of energy policy in the last few years, for example, Shurr (1979), Federal Energy Administration (1976), ERDA (1976), and the Ford Foundation (Landsberg, 1978). Unlike these studies of energy policies, this effort is not prescriptive. Rather, it...

Despite waning governmental interest, the current world oil market provides a valuable opportunity for reflecting on how U.S. policies can be structured to best guard against future disruptions in oil supplies. A vast literature on this subject has developed over the past few years. Yet,...