base, we distinguish between price-based regulation and cost-based regulation. Under cost-based regulation, investment … triggers a change of regulated prices, whereas, under price-based regulation, investment does not affect them. To motivate …. Our main conclusion is that cost-based regulation accelerates investment compared to price-based regulation. …

In the context of yardstick regulation with long-lived assets, the influence of investment cycles and thereof resulting … heterogeneous capital structures on the ability to recover capital is quite important. Investment decisions are based on whole … investment cycles of the infrastructure. It is shown in this article that variable lifetimes of assets may cause substantial …