24-09-2021
Policymakers are not achieving the goal of cost recovery due to electricity consumers fail to distinguish between fixed and marginal costs
In his latest work published by The Economic Journal,
Xavier Labandeira, along with José M. Labeaga and Jordi J. Teixidó, exposes
that electricity cost recovery policies are failing since they are based on
incorrect assumptions. They argue that consumers do not distinguish between
fixed and marginal costs.
https://academic.oup.com/ej/advance-article/doi/10.1093/ej/ueab076/6373920
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