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Economic determinants of deregulation in the gas distribution market

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  • Vladimír Hlásny

Abstract

Many state public commissions have deregulated their utility markets. However, evidence of welfare or efficiency improvements under deregulation is ambiguous. It is also unclear why different states adopt consumer choice, price caps, sliding-scale plans, or retain rate-of-return regulation. This study evaluates several economic factors behind deregulation in gas distribution markets using a survey of state commissions. Logistic and hazard models show that utilities’ prices and capacity, and states’ stock of own gas wells, prices of competing fuels and the regulatory climate, help explain the pattern of deregulation. Demonstration effects from surrounding markets also contribute. These factors make the propensity to use price caps versus restructuring vary regionally.

Suggested Citation

  • Vladimír Hlásny, 2011. "Economic determinants of deregulation in the gas distribution market," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 14(3), pages 201-213.
    • Handle: RePEc:taf:jecprf:v:14:y:2011:i:3:p:201-213
    DOI: 10.1080/17487870.2011.570089
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    Cited by:

    1. Mizutani, Fumitoshi & Uranishi, Shuji, 2020. "An analysis of the inter-effect of structural reforms and rail mode share," Research in Transportation Economics, Elsevier, vol. 81(C).

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