Arbeitspapier
Economic and technical issues in the assessment of the regulatory WACC for utilities
In this discussion paper I review and discuss the main economic and technical issues affecting the Regulatory WACC assessment in the sector of regulated utilities. I focus on three main compelling issues (the estimation of the risk-free rate, the treatment of risky debt, the calculation of the equity risk premium), for which I analyse the proposed approach of the Italian Regulatory Authority for Energy, Networks and Environment (ARERA) and some alternative viewpoints that can fulfil the current debate. Moreover, I also analyse some minor technical issues relating the consideration of a small size risk premium in the cost of capital estimation and the optimal investment level.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper Series ; No. 17
- Classification
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Wirtschaft
- Subject
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Versorgungswirtschaft
Energiewirtschaft
Regulierung
Kapitalkosten
Italien
- Event
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Geistige Schöpfung
- (who)
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Dell'Acqua, Alberto
- Event
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Veröffentlichung
- (who)
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Bocconi University, Centre for Research on Geography, Resources, Environment, Energy and Networks (GREEN)
- (where)
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Milan
- (when)
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2021
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dell'Acqua, Alberto
- Bocconi University, Centre for Research on Geography, Resources, Environment, Energy and Networks (GREEN)
Time of origin
- 2021