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Better safe than sorry? Reliability policy in network industries

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CPB ()
Abstract

This report develops a roadmap for reliability policy in network industries. Based on economic theory, we analyse the relationship between reliability and various types of government policy: privatisation, liberalisation, regulation, unbundling, and 'commitment policy'. We let government policy depend on (1) the feasibility of competition between networks, (2) contractibility of reliability, and (3) the relation between profit maximisation and public interests. We test this roadmap on the basis of the empirical literature and case studies on electricity, natural gas, drinking water, wastewater, and railways.

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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Documents with number 73.

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Date of creation: Dec 2004
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Handle: RePEc:cpb:docmnt:73

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Related research
Keywords: reliability network networks network industry network industries government policy privatisation privatization liberalisation liberalization regulation electricity natural gas water railways

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Find related papers by JEL classification:
L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out
L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Anette Boom, 2003. "Investments in Electricity Generating Capacity under Different Market Structures and with Endogenously Fixed Demand," CIG Working Papers SP II 2003-01, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
  2. Affuso, Luisa & Newbery, David M G, 2000. "Investment, Reprocurement and Franchise Contract Length in the British Railway Industry," CEPR Discussion Papers 2619, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Domberger, Simon & Hall, Christine & Li, Eric Ah Lik, 1995. "The Determinants of Price and Quality in Competitively Tendered Contracts," Economic Journal, Royal Economic Society, vol. 105(433), pages 1454-70, November. [Downloadable!] (restricted)
  4. de Fraja, Giovanni & Delbono, Flavio, 1989. "Alternative Strategies of a Public Enterprise in Oligopoly," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 302-11, April. [Downloadable!] (restricted)
  5. William J. Baumol & Alvin K. Klevorick, 1970. "Input Choices and Rate-of Return Regulation: An Overview of the Discussion," Bell Journal of Economics, The RAND Corporation, vol. 1(2), pages 162-190, Autumn. [Downloadable!] (restricted)
  6. Jeroen de Joode & Douwe Kingma & Mark Lijesen & Victoria Shestalova, 2004. "Energy Policies and Risks on Energy Markets; A cost-benefit analysis," CPB Special Publications 51, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  7. Benz, Men-Andri & Bühler, Stefan & Schmutzler, Armin, 2003. "Infrastructure Quality in Deregulated Industries: Is there an Underinvestment Problem?," CEPR Discussion Papers 3836, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Brunekreeft, G. & McDaniel, T., 2005. "Policy uncertainty and supply adaquacy in electric power markets," Discussion Paper 06, Tilburg University, Tilburg Law and Economic Center. [Downloadable!]
  2. Machiel van Dijk & Bert Minne & Machiel Mulder & Joost Poort & Henry van der Wiel, 2005. "Do market failures hamper the perspectives of broadband?," CPB Documents 102, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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This page was last updated on 2008-10-7.

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