In the context of yardstick regulation with long-lived assets, the influence of heterogeneous investment cycles on the …-line) depreciation given heterogeneous investment and cost cycles will cause instantaneous yardstick levels below the long …

regulatory environment on transmission line expansion (by the regulator) and investment in generation capacity (by private firms …) in liberalized electricity markets. The basic model analyzes investment decisions of the transmission operator (TO) and … based network tariffs, although investment slightly differs across those regimes. …