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Industrial cogeneration and regulatory policy

โœ Scribed by Paulette Barclay; Douglas Gegax; John Tschirhart

Book ID
104635679
Publisher
Springer US
Year
1989
Tongue
English
Weight
959 KB
Volume
1
Category
Article
ISSN
0922-680X

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โœฆ Synopsis

The 1978 Public Utility Regulatory Policy Act (PURPA)fostered decentralized generation of electricity, particularly in the form of cogeneration. A model of a firms' decision to cogenerate is developed that illustrates both the interface between the firm and an electric utility, and the firm's internal interface between its primary product and cogeneration technologies. The model is used to show that the firm may operate inefficiently in both the short run and long run owing to the fixed-proportions technology of cogeneration and PURPA mandated operating procedures, respectively. Cogenerating firms that dump heat into the atmosphere may signal inefficient behavior; therefore, monitoring heat dumping may be important in measuring the success of cogeneration.

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