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|
|Date of revision:|
|Contact details of provider:|| Postal: Poschingerstr. 5, 81679 München|
Web page: http://www.cesifo-group.de
More information through EDIRC
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.:
- Jeffrey I. Bernstein & David E. M. Sappington, 1998.
"Setting the X Factor in Price Cap Regulation Plans,"
NBER Working Papers
6622, National Bureau of Economic Research, Inc.
- Bernstein, Jeffrey I & Sappington, David E M, 1999. "Setting the X Factor in Price-Cap Regulation Plans," Journal of Regulatory Economics, Springer, vol. 16(1), pages 5-25, July.
- Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, December.
- Ingo Vogelsang, 2005. "The German Electricity Sector – Finally on the Move?," CESifo DICE Report, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(2), pages 30-39, 07.
- Storchmann, Karl, 2005. "The rise and fall of German hard coal subsidies," Energy Policy, Elsevier, vol. 33(11), pages 1469-1492, July.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ces:ifowps:_34. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Klaus Wohlrabe)
If references are entirely missing, you can add them using this form.