Funding for Universal Service Obligations in Electricity Sector : the case of green power development
AbstractThe process of deregulation in network industries, in particular in the electric sector, raises the problem of Þnancing the Universal Service Obligations (USO) corresponding to the production, transport and distribution operations. In this paper, we study three ways of funding for an USO of production, especially the "green" electricity development: the Þnancing with cross-subsidies, the implementation of a fund (financing by a tax) and finally a voluntary funding system by direct subscriptions of consumers. We notably show that this last one Pareto dominates mostly, from a welfare point of view, the other scenarios.
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Bibliographic InfoPaper provided by CREDEN (Centre de Recherche en Economie et Droit de l'Energie), Faculty of Economics, University of Montpellier 1 in its series Cahiers du CREDEN (CREDEN Working Papers) with number 02.07.33.
Length: 36 pages
Date of creation: 2002
Date of revision:
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Postal: Université de Montpellier 1, Faculté des Sciences Economiques, CREDEN, Rue Raymond Dugrand - Espace Richter, CS 79606, 34960 Montpellier Cedex 2, France
Phone: 33 (0)4 67 15 83 60
Fax: 33 (0)4 67 15 84 04
Web page: http://www.creden.univ-montp1.fr
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ELECTRICITY ; ENVIRONMENT ; REGULATION ; NETWORK ; UNIVERSAL SERVICE;
Other versions of this item:
- Favard, P. & Mirabel, F. & Poudou, J.-C., 2002. "Funding for Universal Service Obligations in Electricity Sector: the case of green power development," Cahiers du LASER (LASER Working Papers) 2002.06, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1.
- D4 - Microeconomics - - Market Structure and Pricing
- L5 - Industrial Organization - - Regulation and Industrial Policy
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
- Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
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