Arbeitspapier

On distributive effects of optimal regulation for power grid expansion

To date, the distributive implications of incentive regulation on electricity transmission networks have not been explicitly studied in the literature. More specifically, the parameters that a regulator might use to achieve distributive efficiency under price-cap regulation have not yet been identified. To discern these parameters is the motivation for the research presented in this paper. We study how different weight parameters affect the distributive characteristics of optimal price-cap incentive regulation for electricity transmission. We find that a regulator's use of ideal (Laspeyres) weights tends to be more beneficial for the Transco (consumers) than for consumers (the Transco).

Language
Englisch

Bibliographic citation
Series: DIW Discussion Papers ; No. 1327

Classification
Wirtschaft
Regulation and Industrial Policy: General
Economics of Regulation
Electric Utilities
Energy: General
Alternative Energy Sources
Subject
electricity transmission
incentive regulation
distributive efficiency

Event
Geistige Schöpfung
(who)
Herrera, Luis Ángel
Rosellón, Juan
Event
Veröffentlichung
(who)
Deutsches Institut für Wirtschaftsforschung (DIW)
(where)
Berlin
(when)
2013

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Herrera, Luis Ángel
  • Rosellón, Juan
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Time of origin

  • 2013

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