Review of Industrial Organization

, Volume 5, Issue 2, pp 13–27 | Cite as

Efficiency in nuclear power pricing

  • Herbert G. ThompsonJr.
  • David R. Kamerschen
  • Albert L. Danielsen
Empirical Studies In Industrial Organization, Southern Economic Association Conference


This study investigates whether the rate structure for electric utilities with nuclear and fossil fuel generation is efficient and perhaps equitable. Data were collected on fossil and nuclear steam generation and transmission to estimate costs. Tests were performed to determine if efficient pricing practices were being followed. The results indicate that the marginal cost of nuclear generated power is less than that of power generated from fossil fuel sources. Also, the rate structure for the nuclear utilities is inefficient, with industrial rates significantly higher than first-best or second-best pricing criteria would indicate.


Fossil Fuel Marginal Cost Industrial Organization Steam Generation Rate Structure 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Industrial Organization Society 1990

Authors and Affiliations

  • Herbert G. ThompsonJr.
    • 1
  • David R. Kamerschen
    • 1
  • Albert L. Danielsen
    • 1
  1. 1.The University of GeorgiaUSA

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