Are Residential Electricity Prices Too High or Too Low? Or Both?

@inproceedings{Bushnell2018AreRE,
  title={Are Residential Electricity Prices Too High or Too Low? Or Both?},
  author={James Bushnell},
  year={2018}
}
Advocates of market mechanisms for addressing greenhouse gases and other pollutants typically argue that it is a necessary step in pricing polluting goods at their social marginal cost (SMC). Electricity prices, however, deviate from social marginal cost for many reasons, some of which cause prices to be too low–such as pollution externalities–and others cause prices to be too high–such as recovery of fixed costs. Furthermore, because electricity is not storable, marginal cost can fluctuate… 
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