Costs, Technology And Ownership Form Of Natural Gas Distribution In Italy
AbstractThe analysis of the technology and costs of the gas distribution networks highlights that the number of customers is more important than the amount of gas delivered, as well as the absence of economies of scale, the presence of economies of density and the significant role of the morphologic and demographic variables. The diversification towards other services, such as water and electricity, provides good opportunities for efficiency. The lower costs for private operators and the constant economies of scale indicate that the privatisation process should continue and confirm the benefits of having many operators (yardstick competition). The control of monopoly rents in efficient conditions requires the use of a tariff system similar to a price-cap, provided that it takes into account the territorial constraints.
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Bibliographic InfoPaper provided by Institute for Economic Research on Firms and Growth - Moncalieri (TO) in its series CERIS Working Paper with number 199713.
Length: 22 pages Keywords : Gas utilities, Costs, Public and private enterprise
Date of creation: Dec 1997
Date of revision:
Find related papers by JEL classification:
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
- L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
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