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requirements, (international) benchmarking is not an adequate tool for the regulation of transmission system operators (TSO …). Errors in the outcomes of benchmarking will likely distort network investment and therefore the costs of doing it wrong are … high. The paper discusses options to reduce the weight of benchmarking in TSO regulation and options that do not rely on …
Persistent link: https://www.econbiz.de/10010615136
In an intertemporal model, we analyze the timing of irreversible and lumpy monopoly investment under certainty. There are two reasons for investing, i.e. wear and tear leading to replacement investment and demand growth leading to expansion investment. Both in a single investment setting and in...
Persistent link: https://www.econbiz.de/10010860637
This paper contributes a theoretical analysis of the effects of different types of regulation on the timing of monopoly investment in a setting with lumpy investment outlays. Concentrating on the case where investment increases the regulatory asset base, we distinguish between price-based...
Persistent link: https://www.econbiz.de/10010860641