Shock Value: Bill Smoothing and Energy Price Pass-Through
Energy prices are volatile, affect every consumer and industry in the economy, and are impacted by regulations including gas taxes and carbon pricing. Like the pass-through literature in general, the growing energy pass-through literature focuses on marginal prices. However, multi-part pricing is co...
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| Format: | Article |
| Language: | English |
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Blackwell Publishing Ltd
2019
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| Online Access: | View Fulltext in Publisher |
| LEADER | 01249nam a2200133Ia 4500 | ||
|---|---|---|---|
| 001 | 10.1111-joie.12200 | ||
| 008 | 220511s2019 CNT 000 0 und d | ||
| 020 | |a 00221821 (ISSN) | ||
| 245 | 1 | 0 | |a Shock Value: Bill Smoothing and Energy Price Pass-Through |
| 260 | 0 | |b Blackwell Publishing Ltd |c 2019 | |
| 856 | |z View Fulltext in Publisher |u https://doi.org/10.1111/joie.12200 | ||
| 520 | 3 | |a Energy prices are volatile, affect every consumer and industry in the economy, and are impacted by regulations including gas taxes and carbon pricing. Like the pass-through literature in general, the growing energy pass-through literature focuses on marginal prices. However, multi-part pricing is common in energy retail pricing. I examine the retail natural gas market, showing that while marginal prices exhibit full or nearly full pass-through, fixed fees exhibit negative pass-through. This is consistent with the stated desire by utilities and regulators to prevent ‘bill shock.’ I discuss implications for pass-through estimation and for proposed alternative pricing structures for regulated utilities. © 2019 The Editorial Board of The Journal of Industrial Economics and John Wiley & Sons Ltd | |
| 700 | 1 | |a Hausman, C. |e author | |
| 773 | |t Journal of Industrial Economics | ||