Efficiency and Equity in Two-Part Tariffs: The Case of Residential Water Rates

Numéro: 2012-8 Efficiency and Equity in Two-Part Tariffs: The Case of Residential Water Rates Simon Porcher (IAE Paris) Abstract: As first noticed by Coase (1946), a standard result in utility regulation is that efficiency requires two-part tariffs with marginal prices set to marginal costs and fixed fees equal to each customer’s share of fixed costs. Residential…

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