Discussing the pros and cons of regulating California's utility market.
Written in 2002; 1,568 words; 1 sources; MLA; $ 51.95
Paper Summary:
This paper explains the economic and social justifications for regulation of utility markets in general, and California's electricity market in particular. It then explains the history of, and then critically reviews, the comments presented an article in "The Economist" titled "How to Keep the Fans Turning").
From the Paper:
California’s deregulation effort five years ago, and the governor’s recent steps to reverse it, illustrate clearly some of the economic concepts addressed in this class. A recent article in The Economist magazine (“How to keep the fans turning”) presents some specific criticisms of the moves to “re-regulate” the state’s power business. In doing so, this article offers further examples of some familiar economic concepts in action. In the end, the magazine’s critical stance seems justified, particularly with what is likely to be its strongest point of all: that the solution to California’s power crisis is based on the classic relationship between price and demand.
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