Policy Research Supporting Policy Making: The CIDE-CRE Agreement
AbstractThis paper presents a case study of regulation of natural gas pricing in Mexico as a case of “successful” policy research. Studies done under an academic agreement between the Comisión Reguladora de Energía (CRE) and the Centro de Investigación y Docencia Económicas (CIDE) in Mexico City have analyzed the welfare efficiency implications of the netback rule based on the Houston gas price that is used to set the domestic gas price. This rule results from a well structured welfare maximization general model. However, in practice the netback rule has been debated during several North American price spikes. Policy makers relied on CIDE studies to keep the netback rule. This case study examines how and why policy makers did so. The debate within the Mexican government is analyzed, and the actors involved in the policy discussions are described, as well as the relationships between CIDE and CRE that were developed, and that helped in the communication with policymakers. The methods of dissemination of research are also discussed.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 22419.
Date of creation: 2008
Date of revision:
Publication status: Published in Gestion y Politica Publica XVII.1(2008): pp. 71-99
natural gas; price regulation; benchmarking; policiy research; Mexico;
Find related papers by JEL classification:
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
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.:
- Dagobert L. Brito & Juan Rosellon, 2002. "Pricing Natural Gas in Mexico: An Application of the Little-Mirrlees Rule," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 81-93.
- Brito, Dagobert L. & Rosellón, Juan, 2005. "Un modelo de equilibrio general para la fijación de precios del gas natural en México," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(286), pages 391-408, abril-jun.
- Dagobert L. Brito & William Laney Littlejohn & Juan Rosellón, 2000. "Pricing Liquid Petroleum Gas in Mexico," Southern Economic Journal, Southern Economic Association, vol. 66(3), pages 742-753, January.
- Brito Dagobert L. & Rosellón Juan, 2005. "Price Regulation in a Vertically Integrated Natural Gas Industry: The Case of Mexico," Review of Network Economics, De Gruyter, vol. 4(1), pages 1-18, March.
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