Tarificación de la Transmisión Eléctrica: por qué licitar es (mucho) mejor que regular
AbstractThere are at least two ways of fixing high voltage transmission tolls. One is to regulate them in standard fashion; another is to allocate new transmission lines in competitive auctions to the bidder offering the lowest toll. In this paper we show that expected tolls are considerably lower if lines are auctioned. Auctions dominate regulation for three reasons. First, bidder competition ensures lower expected tolls. Second, they increase the regulator's bargaining power. Third, if, as in Argentina, project users are allowed to bid and build the line, they can induce even more intense competition. We use our theoretical model to analyze the auction for the fourth Comahue line in Argentina. We show that, had the toll been regulated, it would have been at least 61% higher.
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Bibliographic InfoArticle provided by Ilades-Georgetown University, Economics Department in its journal Revista de Analisis Economico.
Volume (Year): 19 (2004)
Issue (Month): 1 (June)
Find related papers by JEL classification:
- L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
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- Juan Pablo Montero & Salvador Valdés, 2004. "Notas para una Regulación Eficiente de la Transmisión Eléctrica," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 41(123), pages 255-283.
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Elsevier, vol. 23(6), pages 697-715, November.
- Chisari, Omar O. & Dal-Bó, Pedro & Romero, Carlos A., 2000. "High-Tension Electricity Network Expansions in Argentina: Decision Mechanisms and Willigness-to-Pay Revelation," UADE Working Papers 9_2000, Instituto de Economía, Universidad Argentina de la Empresa.
- Roger B. Myerson, 1978. "Optimal Auction Design," Discussion Papers 362, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Bulow, Jeremy I & Klemperer, Paul, 1994.
"Auctions vs. Negotiations,"
CEPR Discussion Papers
924, C.E.P.R. Discussion Papers.
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