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Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks

In: Economic Regulation and Its Reform: What Have We Learned?

  • Paul L. Joskow

Modern theoretical principles to govern the design of incentive regulation mechanisms are reviewed and discussed. General issues associated with applying these principles in practice are identified. Examples of the actual application of incentive r egulation mechanisms to the regulation of prices and service quality for “unbundled” transmission and distribution networks are presented and discussed. Evidence regarding the performance of incentive regulation in practice for electric distribution and transmission networks is reviewed. Issues for future research are identified.

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This chapter was published in:
  • Nancy L. Rose, 2014. "Economic Regulation and Its Reform: What Have We Learned?," NBER Books, National Bureau of Economic Research, Inc, number rose05-1.
  • This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 12566.
    Handle: RePEc:nbr:nberch:12566
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