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Policy Research Supporting Policy Making: The CIDE-CRE Agreement

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  • Rosellon, Juan

Abstract

This 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.

Suggested Citation

  • Rosellon, Juan, 2008. "Policy Research Supporting Policy Making: The CIDE-CRE Agreement," MPRA Paper 22419, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:22419
    as

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    File URL: https://mpra.ub.uni-muenchen.de/22419/1/MPRA_paper_22419.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Dagobert L. Brito & William Laney Littlejohn & Juan Rosellón, 2000. "Pricing Liquid Petroleum Gas in Mexico," Southern Economic Journal, John Wiley & Sons, vol. 66(3), pages 742-753, January.
    4. Jean-Jacques Laffont, 1988. "Fundamentals of Public Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121271, December.
    5. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    natural gas; price regulation; benchmarking; policiy research; Mexico;
    All these keywords.

    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

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