scholarly journals Integrating Cambium Marginal Costs into Electric Sector Decisions: Opportunities to Integrate Cambium Marginal Cost Data into Berkeley Lab Analysis and Technical Assistance

2021 ◽  
Author(s):  
Joachim Seel ◽  
Andrew Mills
Keyword(s):  
Marginal Cost ◽  
Technical Assistance ◽  
Cost Data ◽  
Electric Sector ◽  
Marginal Costs

Unequal Treatment of Identical Agents in Cournot Equilibrium

1999 ◽  
Vol 89 (3) ◽  
pp. 585-604 ◽  
Author(s):  
Stephen W Salant ◽  
Greg Shaffer
Keyword(s):  
Marginal Cost ◽  
Consumer Surplus ◽  
Production Costs ◽  
Cournot Equilibrium ◽  
Unequal Treatment ◽  
Marginal Costs ◽  
Second Stage ◽  
Policy Debates ◽  
The Cost ◽  
Antitrust Regulation

Oligopoly models where prior actions by firms affect subsequent marginal costs have been useful in illuminating policy debates in areas such as antitrust regulation, environmental protection, and international competition. We discuss properties of such models when a Cournot equilibrium occurs at the second stage. Aggregate production costs strictly decline with no change in gross revenue or gross consumer surplus if the prior actions strictly increase the variance of marginal costs without changing the marginal-cost sum. Therefore, unless the cost of inducing second-stage asymmetry more than offsets this reduction in production costs, the private and social optima are asymmetric. (JEL D43, L13, L40)

Measuring Duopoly Power in the British Electricity Spot Market

1999 ◽  
Vol 89 (4) ◽  
pp. 805-826 ◽  
Author(s):  
Catherine D Wolfram
Keyword(s):  
Marginal Cost ◽  
Theoretical Models ◽  
Spot Market ◽  
Financial Contracts ◽  
Marginal Costs ◽  
Regulatory Constraints ◽  
Inelastic Demand ◽  
Threat Of Entry ◽  
Electricity Spot Market ◽  
Direct Measures

This article presents an empirical study of market power in the British electricity industry. Estimates of price-cost markups are derived using direct measures of marginal cost and several approaches that do not rely on cost data. Since two suppliers facing inelastic demand dominate the industry, most oligopoly models predict prices substantially above marginal costs. All estimates indicate that prices, while higher than marginal costs, are not nearly as high as most theoretical models predict. Regulatory constraints, the threat of entry, and financial contracts between the suppliers and their customers are considered as possible explanations for the observed price levels. (JEL L13, L94)

Estimation of urban bus transit marginal cost without cost data

2016 ◽  
Vol 90 ◽  
pp. 241-262 ◽  
Author(s):  
Marco Batarce
Keyword(s):  
Marginal Cost ◽  
Cost Data ◽  
Bus Transit ◽  
Urban Bus

scholarly journals On the Workings of a Cartel: Evidence from the Norwegian Cement Industry

2006 ◽  
Vol 96 (1) ◽  
pp. 321-338 ◽  
Author(s):  
Lars-Hendrik Röller ◽  
Frode Steen
Keyword(s):  
Marginal Cost ◽  
Cost Accounting ◽  
Cement Industry ◽  
Welfare Gains ◽  
Entire Sample ◽  
Sharing Rule ◽  
Cost Estimates ◽  
Accounting Data ◽  
Marginal Costs ◽  
Using Data

Using data on prices, production, and exports, we are able to identify marginal costs as well as the effectiveness of the Norwegian cement industry cartel. We find that our marginal cost estimates are very much in line with the detailed cost accounting data. We show that the cement cartel has been ineffective because the sharing rule induces “overproduction” and exporting below marginal costs. It is consumers — not firms — who benefit from the sharing rule. The ineffectiveness of the cartel was becoming so large that domestic welfare of a merger to monopoly would be positive around 1968, which is when the merger actually took place! We also show that competition would have resulted in even higher welfare gains over the entire sample.

scholarly journals What might it cost to increase soil organic carbon using no-till on U.S. cropland?

2020 ◽  
Author(s):  
Mark Sperow
Keyword(s):  
Organic Carbon ◽  
Soil Organic Carbon ◽  
Marginal Cost ◽  
Agricultural Soils ◽  
Cost Effective ◽  
Intergovernmental Panel ◽  
Marginal Costs ◽  
Geologic Storage ◽  
No Till ◽  
Sequestration Potential

Abstract BackgroundExisting research provides estimates of the biophysical potential for increasing soil organic carbon (SOC) stock, however additional research is needed to enhance our understanding of the economic potential for agricultural soils to offset or help reduce CO2 emissions. This study derives the marginal cost to increase SOC sequestration by combining SOC sequestration potential estimates developed using the Intergovernmental Panel on Climate Change (IPCC) factors with an existing payment scheme that was designed to increase no-till (NT) adoption on U.S. cropland. The marginal costs of increasing SOC is a function of the amount of SOC that could be increased through NT and the expected cost to landowners of changing management to use NT.ResultsThe variability in SOC sequestration rates due to different land-use, management histories, climate, and soils, combined with the 48 unique payment rates to adopt NT, yield over 5,000 unique marginal cost values for increasing SOC sequestration. Nearly 95 percent of the biophysical potential SOC sequestration increase on U.S. cropland (2802 Tg CO2 from 140.1 Tg CO2 yr-1 for twenty years) could be captured for less than $100 Mg-1 CO2. An estimated 64 to 93 percent of the biophysical potential could be captured for less than the low and high estimated costs to capture CO2 for geologic storage of $36.36 to $86.06 Mg-1 CO2, respectively.ConclusionsDecreasing tillage intensity through adoption of no-till agriculture offers a cost-effective way to offset a portion of increasing global CO2 emissions. This research demonstrates that increasing SOC stocks through NT adoption can offset CO2 emissions at a lower cost than some other options for preventing CO2 from entering the atmosphere.

scholarly journals What might it cost to increase soil organic carbon using no-till on U.S. cropland

2020 ◽  
Author(s):  
Mark Sperow
Keyword(s):  
Organic Carbon ◽  
Soil Organic Carbon ◽  
Marginal Cost ◽  
Agricultural Soils ◽  
Cost Effective ◽  
Intergovernmental Panel ◽  
Marginal Costs ◽  
Geologic Storage ◽  
No Till ◽  
Sequestration Potential

Abstract Background Existing research provides estimates of the biophysical potential for increasing soil organic carbon (SOC) stock, however additional research is needed to enhance our understanding of the economic potential for agricultural soils to offset or help reduce CO 2 emissions. This study derives the marginal cost to increase SOC sequestration by combining SOC sequestration potential estimates developed using the Intergovernmental Panel on Climate Change (IPCC) factors with an existing payment scheme that was designed to increase no-till (NT) adoption on U.S. cropland. The marginal costs of increasing SOC is a function of the amount of SOC that could be increased through NT and the expected cost to landowners of changing management to use NT. Results The variability in SOC sequestration rates due to different land-use, management histories, climate, and soils, combined with the 48 unique payment rates to adopt NT, yield over 5,000 unique marginal cost values for increasing SOC sequestration. Nearly 95 percent of the biophysical potential SOC sequestration increase on U.S. cropland (140.1 Tg CO 2 yr -1 ) could be captured for a cost less than $100 Mg -1 CO 2. An estimated 64 to 93 percent of the biophysical potential could be captured for less than the low and high estimated costs to capture CO 2 for geologic storage of $36.36 to $86.06 Mg -1 CO 2 , respectively. Conclusions Decreasing tillage intensity through adoption of no-till agricultural offers a cost-effective way to offset a portion of increasing global CO 2 emissions. This research demonstrates that increasing SOC stocks through NT adoption can offset CO 2 emissions at a lower cost than some other options for preventing CO 2 from entering the atmosphere.

scholarly journals The costs of icebreaking services: an estimation based on Swedish data

2020 ◽  
Vol 19 (1) ◽  
pp. 125-142 ◽  
Author(s):  
Eva Lindborg ◽  
Peter Andersson
Keyword(s):  
Marginal Cost ◽  
Fixed Costs ◽  
External Effects ◽  
Marginal Costs ◽  
Advantages And Disadvantages ◽  
The Social ◽  
The Usa ◽  
The Cost ◽  
Pricing Schemes ◽  
Swedish Data

AbstractIn winter, the sea around Sweden and Finland as well as parts of the waters around Canada, Russia and the USA become ice covered, and ships may require assistance from icebreakers to proceed to their destinations. This paper accordingly analyses the cost structure and estimates the cost of icebreaking operations at sea, including the costs of external effects of the icebreakers’ emissions, and analyses the consequences of different pricing schemes for financing icebreaking services. A regression analysis was carried out based on data from icebreaking services in Sweden over 14 winters from 2001/2002 to 2015/2016. The social marginal cost of an average assistance operation (which may involve more than one ship) is estimated at EUR 6476 and for each assisted ship EUR 5304. The same cost is EUR 907 per running hour for the icebreakers and EUR 1990 per hour a ship is assisted. Each additional nautical mile sailed by an icebreaker costs society EUR 141 and each assisted nautical mile EUR 234. The marginal cost is found not to be related to winter severity. Despite the significant social marginal costs, not including large fixed costs, icebreaking in Sweden and Finland is free of charge. The advantages and disadvantages of four pricing models that can be applied to cover at least parts of the costs to society are discussed. All models could create new distortions, but a price per assisted hour may be worth applying in practice.

APPLICATION OF LIMITING MARGINAL ABATEMENT COSTS IN OPTIMISED STRATEGIES TO REDUCE ACIDIFICATION AND EUTROPHICATION IN EUROPE: ILLUSTRATIONS USING THE ABATEMENT STRATEGIES ASSESSMENT MODEL (ASAM)

2000 ◽  
Vol 02 (01) ◽  
pp. 119-166 ◽  
Author(s):  
RACHEL F. WARREN ◽  
HELEN M. APSIMON
Keyword(s):  
Cost Effectiveness ◽  
Marginal Cost ◽  
Assessment Model ◽  
Policy Makers ◽  
Marginal Costs ◽  
Transboundary Air Pollution ◽  
Investment Level ◽  
Volatile Organic ◽  
Abatement Strategies ◽  
Reduce Emissions

The Convention on Long-Range Transboundary Air Pollution has led to the setting up of international protocols to reduce emissions of oxides of sulphur and nitrogen, ammonia, and volatile organic compounds (VOCs). Policy makers have made use of optimised abatement strategies derived by integrated assessment models (IAMs) which cost-effectively reduce acidification, eutrophication and tropospheric ozone. IAMs use information on costs of potential emission abatement options in individual countries. This paper explores the implications of limiting the abatement options in IAMs to those with moderate marginal costs. Three methods of applying this constraint to the optimisation are described. All methods indicate a loss of cost-effectiveness, this being most severe when marginal costs are constrained and environmental constraints are not compromised. However, when the overall investment level is capped and the strategy re-optimised taking into account marginal cost limitation whilst allowing violation of the original environmental targets, the loss of cost-effectiveness is less severe. For all three methods, significant changes occur in patterns of country expenditures and environmental protection, which tends to decrease significantly in those areas most difficult to protect. However, the re-optimisation method does provide the opportunity for "compensating" improvements to be achieved in other areas which are easier to protect. The choice of marginal cost limits strongly affects the extent and nature of these changes, as does the nature of the original optimised strategy.

Cost of providing cell-free DNA screening for Down syndrome in Finland using different strategies

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Howard Cuckle ◽  
Seppo Heinonen ◽  
Anna-Kaisa Anttonen ◽  
Vedran Stefanovic
Keyword(s):  
Down Syndrome ◽  
Marginal Cost ◽  
Financial Analysis ◽  
False Negative ◽  
Fetal Loss ◽  
Cell Free Dna ◽  
Marginal Costs ◽  
Free Dna ◽  
Screening Strategies ◽  
Combined Test

Abstract Introduction A financial analysis is carried out to assess costs and benefits of providing cell-free DNA screening in Finland, using different strategies. Materials and methods Three cell-free DNA screening strategies are considered: Primary, all women; Secondary, those with positive Combined test; and Contingent, the 10–30% with the highest Combined test risks. Three costs are estimated: additional cost for 10,000 pregnancies compared with the Combined test; ‘marginal’ cost of avoiding a Down syndrome birth which occurs in a pregnancy that would have been false-negative using the Combined test; and marginal cost of preventing the iatrogenic loss of a non-Down syndrome birth which occurs in a pregnancy that would have been false-positive. Results Primary cell-free DNA will require additional funds of €250,000. The marginal cost per Down syndrome birth avoided is considerably less than the lifetime medical and indirect cost; the marginal cost per unaffected iatrogenic fetal loss prevented is higher than one benefit measure but lower than another. If the ultrasound component of the Combined test is retained, as would be in Finland, the additional funds required rise to €992,000. Secondary cell-free DNA is cost-saving as is a Contingent strategy with 10% selected but whilst when 20–30% costs rise they are much less than for the Primary strategy and are cost-beneficial. Conclusions When considering the place of cell-free DNA screening it is important to make explicit the additional and marginal costs of different screening strategies and the associated benefits. Under most assumptions the balance is favorable for Contingent screening.

Advance Sales of Services

2016 ◽  
Vol 20 (2) ◽  
pp. 135-151 ◽  
Author(s):  
Pavan Rao Chennamaneni ◽  
Ramarao Desiraju ◽  
Anand Krishnamoorthy
Keyword(s):  
Service Provider ◽  
Marginal Cost ◽  
Service Providers ◽  
Advance Selling ◽  
Marginal Costs ◽  
Capacity Level ◽  
Advance Sales ◽  
Selling Strategies ◽  
Capacity Constrained ◽  
Relative Profitability

We investigate a service provider’s advance selling strategies in the presence of a channel intermediary who improves (i) consumers’ accessibility to the service or (ii) the service provider’s access to higher valuation segments. We evaluate the conditions under which dealing with such an intermediary may offset the attendant costs of providing suitable incentives. Our results indicate that the relative profitability of selling via the intermediary is affected by an interaction among marginal costs, capacity level, and the type of value the intermediary brings to the channel. We find that a capacity-constrained service provider may prefer selling via an intermediary that offers improved access to higher valuation consumers. However, when the service provider has excess capacity, indirect sales is preferred even when the intermediary is simply expanding the reach. In such a setting, both the service provider and the intermediary can enhance their profits in a symbiotic manner. Our findings have several implications for service providers. A service provider with limited capacity and relatively small marginal cost would be better off not contracting with an intermediary. In contrast, service providers with larger capacity and marginal cost will benefit from using an indirect channel despite the costs of incentivizing such an intermediary.

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