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Keywords: Externality
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Teaching Notes
Journal:
Teaching Notes
Teaching Notes 1–20.
Published: 26 May 2014
... for a ‘first-best world’ rarely exist. We conclude that it is very much possible to gradually move from the existing ad-hoc pricing mechanism to a more robust LRMC regime that takes into account not just the production cost but also a scarcity premium as well as any externalities resulting from the natural-gas...
