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dynamic generation settings. Through application in a stylized two-node network, we find that incentive regulation may perform … motivates further research aimed to characterize optimal regulation for transmission expansion in the context of renewable …
Persistent link: https://www.econbiz.de/10009771877
To date, the distributive implications of incentive regulation on electricity transmission networks have not been … efficiency under price-cap regulation have not yet been identified. To discern these parameters is the motivation for the … price-cap incentive regulation for electricity transmission. We find that a regulator's use of ideal (Laspeyres) weights …
Persistent link: https://www.econbiz.de/10010189844
The informationally simple approach to incentive regulation applies mechanisms that translate the regulator’s objective …
Persistent link: https://www.econbiz.de/10011746784
In this article we analyse the effects of different regulatory schemes (price cap and profit sharing) on a firm s investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a firm s start-up decision relative to a pure price cap...
Persistent link: https://www.econbiz.de/10011509471
are privately owned and experience little or no ex-ante regulation of airport charges. On the other hand, airports … activities into the regulation of airport infrastructure charges? This question is addressed in this paper. We discuss basic …
Persistent link: https://www.econbiz.de/10010510068
costs in a so-called base year. Such regulation is employed, among others, to govern electricity distribution operators in …. A connected set of price caps exists so that a hybrid regulation consisting of any element in this set and the cost …
Persistent link: https://www.econbiz.de/10014470709
Airport regulations can take the form of cost-based, incentive, single-till and dual-till regulations. The present chapter highlights that no regulatory regime can solve all pricing and investment problems involved in airport operations at once when airports control prices in the areas of...
Persistent link: https://www.econbiz.de/10012859267
Electricity distribution operators are regulated as monopolies around the world. Incentive regulation is further … applied to relate their allowed revenues (revenue cap) to cost efficiency and investment. Incentive regulation varies cross … distributors by incentive regulation. Using the long time series data, we evaluated the impact of the Norwegian regulation regimes …
Persistent link: https://www.econbiz.de/10011886982
The paper provides a tractable, analytical framework to study regulatory risk under optimal incentive regulation … consumers' preferences. -- Optimal incentive regulation ; regulatory risk ; procurement ; information rents …
Persistent link: https://www.econbiz.de/10003796198
prefer regulatory risk and these preferences may contradict both the firm's and consumers'. -- optimal incentive regulation …
Persistent link: https://www.econbiz.de/10003850166