What is the X-Factor in the German Electricity Industry?
A new legislation in the German electricity market requires the implementation of an incentive-based regulation within the next years. In such a regime either prices or revenuesare capped and grow with the inflation rate minus a factor, which accounts for productivitydifferences between the sector and the rest of the economy. This paper derivessuch an X-factor for the German electricity industry using a new productivity databaseand Growth Accounting methodology. Considering that several underlying assumptionsare violated due to market imperfections, the calculated X-factor rises from 0.48 to amodified value of 2.15.
|Date of creation:||2006|
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- Storchmann, Karl, 2005. "The rise and fall of German hard coal subsidies," Energy Policy, Elsevier, vol. 33(11), pages 1469-1492, July.
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"Setting the X Factor in Price-Cap Regulation Plans,"
Journal of Regulatory Economics,
Springer, vol. 16(1), pages 5-25, July.
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- Bernstein, Jeffrey I. & Sappington, David E. M., 2000. "How to determine the X in RPI-X regulation: a user's guide," Telecommunications Policy, Elsevier, vol. 24(1), pages 63-68, February.
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