Short-Run Production Costs and Electricity Markets

2010 ◽  
pp. 77-125
Author(s):  
Lev S. Belyaev
Keyword(s):  
Electricity Markets ◽  
Production Costs ◽  
Short Run

scholarly journals Managing Wind Turbine Generators with a Profit Maximized Approach

2020 ◽  
Vol 12 (17) ◽  
pp. 7139
Author(s):  
Dominik McInnis ◽  
Massimiliano Capezzali
Keyword(s):  
Wind Turbine ◽  
Electricity Market ◽  
Investment Decision ◽  
Production Costs ◽  
Variable Cost ◽  
Turbine Generators ◽  
Wind Turbine Generators ◽  
Short Run ◽  
The Impact ◽  
Feed In Tariff

In Europe, at least 3 GW installed capacity of wind turbine generators (WTG) will fall out of subsidy schemes every year from 2021 onwards. An estimated 50% of this capacity cannot be replaced with new WTG due to commercial and legal restrictions. The remaining options are either to sell the electricity without subsidies on the wholesale electricity market—a novelty for most WTG, as most are receiving a feed-in tariff—or their dismantlement. Since the electricity market fixes the price at the intersection of demand and short run marginal production costs, WTG might struggle to generate enough revenues to cover their costs. This paper proposes an innovative commercialization strategy for WTG after the end of the feed-in tariff, namely a profit-maximized approach that focuses on synergies between revenues and costs when increasing the curtailments of the WTG. The two key elements of this approach are a more flexible and variable cost structure and a central overall optimization process. The paper proves the potential of this new strategy and highlights the necessity of further research for WTG at the end of their lifetime from a technical and commercial perspective, due to the impact on the initial investment decision and best allocation of subsides.

Notes on Statistics of Manpower Costs and Unemployment in Major Industrial Countries

1971 ◽  
Vol 56 ◽  
pp. 64-69
Author(s):  
F.K. Jones ◽  
S. Hays ◽  
L.F. Campbell-Boross
Keyword(s):  
Production Costs ◽  
Focus Attention ◽  
Competitive Position ◽  
Industrial Countries ◽  
Export Prices ◽  
Unit Costs ◽  
Statistical Series ◽  
World Markets ◽  
Short Run ◽  
The Cost

This note outlines some of the problems in measuring short-run changes in manpower costs and lists some of the statistical series now available for major industrial countries. Information about changes in the cost of labour provides a useful complement to data about export prices for analysis of the development of a country's competitive position. Each type of indicator has its own drawbacks. For example, for some exports prices are set by competitive world markets and a change in competitiveness may take the form of a change in relative profits rather than a change in price. Moreover, there are well-known difficulties in comparing national indices for prices or unit/average values. For production costs per unit of output, too, there are problems of compilation. There are also problems of interpretation, particularly over very short periods, because the measures can be very erratic. In the field of unit costs it has become usual to focus attention on changes in manpower costs, variously defined, partly because such costs are the most important, and partly because costs of materials (to the extent that they are set by world prices) tend to move more closely in line as between different countries.

scholarly journals STUDY EFFECT OF A PRICE VOLATILITY ON SUPPLY RESPONSE OF CORN IN IRAQ DURING PERIOD (1980 – 2014)

2017 ◽  
Vol 48 (4) ◽  
Author(s):  
Saleh & Al- Ukeili
Keyword(s):  
Economic Theory ◽  
Price Elasticity ◽  
Price Volatility ◽  
Production Costs ◽  
Asymmetry Factor ◽  
News Shocks ◽  
Variable Effect ◽  
Supply Response ◽  
Short Run ◽  
Corn Prices

The aim of this study to analysis Supply Response to the Corn in Iraq for Period (1980 – 2014), And effect of Price Volatility on the Supply Response through the study of the effect the explanatory variables (Average Prices of corn, for Previou year, Area Planted For Previou Year, The weighted Price (Competitive Price), The Price of Fertilizer (Urea), Total flows of Tigris And Euphrates Rivers, The Expected Price variance) on Dependent Variable (Area Planted for Corn Crop). The results indicated A Clear Disorders (Volatility) In the Average Corn Prices for Period (1991- 1996) In other Words, The Time Series of Corn Prices, And This Was an Excuse to Go to Estimate in the ARCH Family Model. It was Selected Model EGARCH (2,2) According To The Results of Statistical Tests, Which Gave An Indication of The Preference for This Model To Others, Through The Results Equation of Supply Response Note That The coefficient of The Price To Previou Year, Which Represents The Price Elasticity of Supply In The Short Run Was Identical To The Logic of Economic Theory Signal Is Positive And The Level of Significance of 1% Amounted (0.0454), And This Proves Rational Farmers In Response To Price Increase The Area, The Cross Elasticity Came To The Logic of Economic Theory And Moral Level of Probability of 1% Amounted (-0.2414), And Results of The Price Elasticity of Supply That The offer Is Inelastic In The Short Run Because The Elasticities of The Crop Was Less Than one, As Well As The Elasticity of Supply for The Production Costs And The Elasticity of Supply For Irrigation Water Came Matching Economic Logic And Moral Level of 1%, The Price Variation Parameter Which Is A Relative Measure of Price Volatility And A Significant Came Its Signal Positive Explain The Relationship With The Planted Crop Area, As The Value of The Asymmetry Factor Positive Appeared And It's A Significant At The Level of Probability of 1% It Confirms That The Good News (Shocks) for Farmers Have A Greater Effect on Response Changes For Random Variable Effect (Risk) of Bad News (Shocks) In The Short Run.

scholarly journals Scenarios for Coal-Exit in Germany—A Model-Based Analysis and Implications in the European Context

Energies ◽  
2020 ◽  
Vol 13 (8) ◽  
pp. 2041 ◽  
Author(s):  
Martin Kittel ◽  
Leonard Goeke ◽  
Claudia Kemfert ◽  
Pao-Yu Oei ◽  
Christian von Hirschhausen
Keyword(s):  
Electricity Markets ◽  
Power Plants ◽  
Electricity Sector ◽  
Hard Coal ◽  
Carbon Intensity ◽  
Electricity Trade ◽  
Short Run ◽  
Coal Power Plants ◽  
Considerable Impact ◽  
Coal Power

The political discussion to reduce the carbon footprint of Germany’s electricity sector, focusing on coal, is intensifying. In this paper, we develop scenarios for phasing out lignite and hard coal power plants in Germany prior to the end of their technical lifespan (“coal-exit”). Our analysis bases upon two coal-exit instruments, the retirement of coal generation capacities and the limiting of how much aged coal power plants with high carbon intensity can be used within a year. Results show that phasing out coal in Germany would have a considerable impact on Central European electricity markets, in terms of decarbonization efforts and electricity trade. An ambitious coal-exit could avert foreseeable shortcomings in Germany’s climate performance in the short-run and release additional carbon savings, thus compensating for potential shortfalls in other energy-intensive sectors by 2030. Limited emissions in the range of 27% would be shifted to neighboring countries. However, tremendous positive climate effects on European scale would result, because Germany’s annual emission savings in 2030 would be substantial. Totaling 85 million tons of CO2, the overall net reduction is equivalent to 17.5% of total European emissions in 2030 without retirements of coal-firing power plants prior to the end of their technical lifespan.

scholarly journals The Responsiveness of U.S. Rice Acreage to Price and Production Costs

1995 ◽  
Vol 27 (2) ◽  
pp. 386-399 ◽  
Author(s):  
Michael E. Salassi
Keyword(s):  
Production Cost ◽  
National Level ◽  
Ordinary Least Squares ◽  
Seemingly Unrelated Regression ◽  
Production Costs ◽  
Market Prices ◽  
Long Run ◽  
Unrelated Regression ◽  
Short Run ◽  
Average Annual Change

AbstractOrdinary least squares and seemingly unrelated regression procedures were used to analyze the impacts of changes in rice prices and production costs on U.S. rice planted acreage. National and regional response models were estimated over the 1970-92 period. Supply-inducing prices of rice were estimated as a function of effective rice support prices and seasonal average market prices. Expected production costs per acre were estimated using lagged actual total variable cash production expenses per acre adjusted by the previous 3-year average annual change in variable expenses. Estimated short-run price and production cost elasticities were found to be inelastic at the national level. However, the magnitude of the production cost elasticities were found to be greater than the price elasticities. Estimated long-run elasticities at the U.S. level were inelastic for changes in price but elastic for changes in production costs. Although acreage response varied across regions, similar relationships were found between price and production cost elasticities.

Production costs in the short run and long run

2010 ◽  
pp. 287-326
Author(s):  
Richard B. McKenzie ◽  
Dwight R. Lee
Keyword(s):  
Production Costs ◽  
Long Run ◽  
Short Run

scholarly journals Production Costs of Field-grown Cercis canadensis L. ‘Forest Pansy’ Identified during Life Cycle Assessment Analysis

HortScience ◽  
2014 ◽  
Vol 49 (5) ◽  
pp. 622-627 ◽  
Author(s):  
Charles R. Hall ◽  
Dewayne Ingram
Keyword(s):  
Life Cycle Assessment ◽  
Life Cycle ◽  
Cultural Practices ◽  
Production Systems ◽  
Production Costs ◽  
Labor Costs ◽  
Post Harvest ◽  
Cercis Canadensis ◽  
Transport Distance ◽  
Short Run

University researchers have recently quantified the value of carbon sequestration provided by landscape trees (Ingram, 2012, 2013). However, no study to date has captured the economic costs of component horticultural systems while conducting a life cycle assessment of any green industry product. This study attempts to fill that void. The nursery production system modeled in this study was a field-grown, 5-cm (2-in) caliper Cercis canadensis ‘Forest Pansy’ in the Lower Midwest. Partial budgeting modeling procedures were also used to measure the sensitivity of related costs and potential benefits associated with short-run changes in cultural practices in the production systems analyzed (e.g., transport distance, post-harvest activities, fertilization rates, and plant mortality). Total variable costs for the seedling and liner stages combined amounted to $2.93 per liner, including $1.92 per liner for labor, $0.73 for materials, and $0.27 per liner for equipment use. The global warming potential (GWP) associated with the seedling and liner stages combined included 0.3123 kg of carbon dioxide equivalents (CO2e) for materials and 0.2228 kg CO2e for equipment use. Total farm-gate variable costs (the seedling, liner, and field production phases combined) amounted to $37.74 per marketable tree, comprised of $9.90 for labor, $21.11 for materials, and $6.73 for equipment use, respectively. However, post-harvest costs (e.g., transportation, transplanting, take-down, and disposal costs) added another $33.78 in labor costs and $27.08 in equipment costs to the farm-gate cost, yielding a total cost from seedling to end of tree life of $98.60. Of this, $43.68 was spent on labor, $21.11 spent on materials, and $33.81 spent on equipment use during the life cycle of each marketable tree. As per an earlier study, the life cycle GWP of the described redbud tree, including greenhouse gas emissions during production, transport, transplanting, take-down, and disposal, would be a negative 63 kg CO2e (Ingram et al., 2013). These combined data can be used to communicate to the consuming public the true (positive) value of trees in the landscape.

scholarly journals Short Run Effects of Carbon Policy on U.S. Electricity Markets

Energies ◽  
2019 ◽  
Vol 12 (11) ◽  
pp. 2150 ◽  
Author(s):  
Steve Dahlke
Keyword(s):  
Natural Gas ◽  
Electricity Markets ◽  
Power Plants ◽  
Carbon Tax ◽  
Carbon Price ◽  
Electricity Sector ◽  
Coal Consumption ◽  
Emissions Reductions ◽  
Carbon Policy ◽  
Short Run

This paper presents estimates of short run impacts of a carbon price on the electricity industry using a cost-minimizing mathematical model of the U.S. market. Prices of $25 and $50 per ton of carbon dioxide equivalent emissions cause electricity emissions reductions of 17% and 22% from present levels, respectively. This suggests significant electricity sector emissions reductions can be achieved quickly from a modest carbon tax, and diminishing reductions occur when increasing from $25 to $50. The model captures short run effects via operational changes at existing U.S. power plants, mostly by switching production from coal to natural gas. A state-level analysis yields the following conclusions: (1) states which reduce the most emissions are high coal-consumers in the Mid-Atlantic and Midwest regions, (2) 15 states increase emissions after carbon policy because they increase natural gas consumption to offset coal consumption decreases in neighboring states, and (3) a flat per-capita rebate of tax revenue leads to wealth transfers across states.

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