Literature review of long-run marginal cost pricing and long-run incremental cost pricing

Author(s):  
H. Y. Heng ◽  
F. Li
1985 ◽  
Vol 7 (4) ◽  
pp. 279-288 ◽  
Author(s):  
Roland Andersson ◽  
Mats Bohman

2015 ◽  
Vol 9 (1) ◽  
pp. 347-354 ◽  
Author(s):  
Yan Qing-you ◽  
Sun Yi-xin ◽  
Qin Chao ◽  
Tan Z hong-fu

An incremental load model during peak load period in which both load rate and simultaneity of load is given. To mitigate the influence of irregular putting into operation of transmission and distribution equipment on fluctuation of marginal cost of transmission and distribution, an annuity calculation method of average incremental cost is proposed, and a calculation model based on long-term marginal cost, which can rationally share the expense of voltage classes, is built. According to incremental load during peak load period and the final average incremental cost to be borne by different voltage classes, the transmission and distribution prices for different voltage classes are calculated. Case study on longterm marginal cost of a certain regional power network is carried out, and calculation results show that the proposed transmission and distribution pricing method can reflect economic trend in the future and is favorable to eliminate crosssubsidies as well as make the electricity prices borne by various consumers in different voltage classes more fair and reasonable.


1988 ◽  
Vol 10 (4) ◽  
pp. 283-286 ◽  
Author(s):  
Anna P. Della Valle

Author(s):  
Paolo Delle Site

For networks with human-driven vehicles (HDVs) only, pricing with arc-specific tolls has been proposed to achieve minimization of travel times in a decentralized way. However, the policy is hardly feasible from a technical viewpoint without connectivity. Therefore, for networks with mixed traffic of HDVs and connected and autonomous vehicles (CAVs), this paper considers pricing in a scenario where only CAVs are charged. In contrast to HDVs, CAVs can be managed as individual vehicles or as a fleet. In the latter case, CAVs can be routed to minimize the travel time of the fleet of CAVs or that of the entire fleet of HDVs and CAVs. We have a selfish user behavior in the first case, a private monopolist behavior in the second, a social planner behavior in the third. Pricing achieves in a decentralized way the social planner optimum. Tolls are not unique and can take both positive and negative values. Marginal cost pricing is one solution. The valid toll set is provided, and tolls are then computed according to two schemes: one with positive tolls only and minimum toll expenditure, and one with both tolls and subsidies and zero net expenditure. Convergent algorithms are used for the mixed-behavior equilibrium (simplicial decomposition algorithm) and toll determination (cutting plane algorithm). The computational experience with three networks: a two-arc network representative of the classic town bypass case, the Nguyen-Dupuis network, and the Anaheim network, provides useful policy insight.


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