that the eight-year catch-up period allowed in this regulation gives strong incentives to reduce costs since the firms can …Data Envelopment Analysis (DEA) based cost norms have attractive properties in the regulation of natural monopolies … to suboptimal incentives. When a regulated firm compares the marginal change in its cost norm with its marginal cost of …

investigate the incentives of a DEA based regulation when some of the demand dimensions, the cost drivers, can, in fact, be … controlled by the monopoly. In such cases, the classical DEA based regulation may lead to suboptimal incentives. Specifically, we … used to regulate Danish water firms. We show that the catch-up period allowed in this regulation gives strong incentives to …

suggest that incentive regulation in the sense of regulatory and benchmark incentive schemes have a significant positive … conditions. The analysis demonstrates that in absence of clear and structural incentives the average efficiency of the utilities … falls in comparison with utilities which are encouraged by incentives …

Yardstick regulation requires the utilization of benchmarking, a valuable tool for improving the public service …

utilities before and after the introduction of the sunshine regulation. As during the period 1992-2006 several alternative … regulatory reforms including privatization, yardstick competition and profit regulation were also seriously considered, we …, scale, etc.), our results suggest that in an appropriate political and institutional context, sunshine regulation can be an …

be low. The results suggest improving incentives for efficient operations in water supply and a consolidation of the …

approaches depending on the size of the company. Whereas incentives should be created for smaller companies to merge the big ones … into this regulatory system. -- Water ; Sewerage ; Comparative Efficiency ; Germany ; Regulation …

-2008. In order to better analyse the impact of regulation on WaSC performance, we decompose actual economic profits into … should be of great interest, not only to those researchers interested in evaluating the effectiveness of regulation, but also …