| ID | 132654 |
| Title Proper | On distributive effects of optimal regulation for power grid expansion |
| Language | ENG |
| Author | Herrera, Luis Angel ; Rosellon, Juan |
| Publication | 2014. |
| Summary / Abstract (Note) | 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). |
| `In' analytical Note | Energy Policy Vol.69, No. ; Jun.2014: p.189-204 |
| Journal Source | Energy Policy Vol.69, No. ; Jun.2014: p.189-204 |
| Key Words | Electricity Transmission ; Incentive Regulation ; Distributive Efficiency ; Cost Theory ; Electricity Transmission Networks - ETN ; Price-Cap Regulation ; Optimal Regulation ; Power Grid Expansion ; Regulation Policy |