Schober, Dominik; Schäffler, Stephan; Weber, Christoph - Zentrum für Europäische Wirtschaftsforschung (ZEW) - 2014
We analyze the treatment and impact of idiosyncratic or firm-specific risk in regulation. Regulatory authorities … regulation. In contrast, it is common to apply only a single benchmark, the weighted average cost of capital (WACC), uniformly to … electricity network operators. In a simulation model for Germany, we find that capital costs increase by approximately 0.2 to 3 …