English, Article, Journal or magazine article edition: Why manufacturing firms produce some electricity internally Kyu Sik Lee; Anas, Alex; Verma, Satyendra; ...

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/163931
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Why manufacturing firms produce some electricity internally
Author
  • Kyu Sik Lee
  • Anas, Alex
  • Verma, Satyendra
  • Murray, Michael
Physical Description
  • preprint
Notes
  • Many manufacturers in developing countries produce their own electricity because the public supply is unavailable or unreliable. The authors develop a model of the firm in which electricity is produced internally, with scale economies. The model explains the observed behavior (prevalent in Nigeria, common in Indonesia, and rare in Thailand) that firms supplement their purchases of publicly produced electricity with electricity produced internally. To prepare an econometric estimate, they specify a translog model. In Nigeria, where firms exhibit excess capacity, generators are treated as a fixed input, whereas in Indonesia, where firms are expanding, they are variable. They confirm strong scale economies in internal power production in both Nigeria and Indonesia. Shadow price analysis for both countries shows that smaller firms would pay much more for public power than larger firms would. Instead of giving quantity discounts, public monopolies should charge the larger firms more and the smaller firms less than they presently charge. In Nigeria, the large firms would make intensive use of their idle generating capacity, while in Indonesia their would expand their facilities. In both countries, small users would realize savings by having to rely less on expensive endogenous power.
  • Public Sector Economics&​Finance,Environmental Economics&​Policies,Economic Theory&​Research,Energy Technology&​Transmission,Markets and Market Access,Energy Technology&​Transmission,Public Sector Economics&​Finance,Carbon Policy and Trading,Environmental Economics&​Policies,Economic Theory&​Research
  • RePEc:wbk:wbrwps:1605
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment