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Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks

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  • Joskow, P.L.

Abstract

Modern theoretical principles to govern the design of incentive regulation mechanisms are reviewed and discussed. General issues associated with applying these principles in practice are identified. Examples of the actual application of incentive r egulation mechanisms to the regulation of prices and service quality for “unbundled” transmission and distribution networks are presented and discussed. Evidence regarding the performance of incentive regulation in practice for electric distribution and transmission networks is reviewed. Issues for future research are identified.

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Bibliographic Info

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0607.

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Length: 94
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:cam:camdae:0607

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Web page: http://www.econ.cam.ac.uk/index.htm

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Keywords: regulation; incentives; networks; electricity; transmission; distribution;

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