Tariffs for electrical energy, with particular reference to domestic tariffs

Embodied Carbon Tariffs

Embodied carbon tariffs tax the direct and indirect carbon emissions embodied in trade — an idea popularized by countries seeking to extend the reach of domestic carbon regulations. We investigate their effectiveness using simulations from an applied general equilibrium model of global trade and energy use. We find that the tariffs do reduce foreign emissions, but their ability to improve the g...

Best Practice Tariffs

Mixing Goods with Two-Part Tariffs∗

We consider a market where consumers mix goods offered by two firms differentiated a la Hotelling, and show how tariff structures affect consumers, profits, and location decisions. As compared to linear pricing, when firms charge two-part tariffs they make higher profits while consumers are worse off. The resulting allocation is not efficient since firms choose extreme locations and too little ...

A Comparison of Optimal Tariffs and Welfare under No Lobbying, Domestic Lobbying, and Domestic-foreign Lobbying

Whether and what type of the lobbying-induced trade policies can improve the domestic welfare? We show that as compared to the case of no lobbying and the case of domestic lobbying, the domestic-foreign lobbying achieves the lowest tariff and may also realize the highest welfare for the domestic country. Our results suggest that the domestic-foreign lobbying may contribute to a freer trade in t...

Power-based Tariffs Boosting Customer-side Energy Storages

This paper considers how power-based distribution tariffs encourage electricity end-users to invest in energy storages to reduce their peak loads. The study uses actual automatic meter reading (AMR) data from 30 000 customers the annual electricity consumption of which is less than 50 MWh. The customers locate in the area of a Finnish distribution system operator (DSO) operating in an urban env...