Incentive Regulation and Network Innovations
Smart Grids require innovations in the electricity networks, mainly on the level of the distributed system operator (DSO). A main objective is to increase the share of distributed generation (DG) connected to that network level, but also to enable load management on the demand side. This paper analyses network innovations in the context of the regulatory framework, namely incentive regulation. It is structured as follows: The first section examines how cost-based and price-based regulatory schemes influence RD&D by regulated companies. This is followed by a discussion of various regulatory instruments to stimulate innovation. The third section provides a more general discussion of the pros and cons of promoting network innovations via network regulation.
|Date of creation:||22 Feb 2011|
|Contact details of provider:|| Postal: Convento, Via delle Fontanelle, 19, 50014 San Domenico di Fiesole (FI) Italy|
Web page: http://www.eui.eu/RSCAS/
More information through EDIRC
References listed on IDEAS
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.:
- Pollitt, M, 2007. "Liberalisation and Regulation in Electricity Systems: How can we get the balance right?," Cambridge Working Papers in Economics 0753, Faculty of Economics, University of Cambridge.
- Bourreau, Marc & Dogan, Pinar, 2001. "Regulation and innovation in the telecommunications industry," Telecommunications Policy, Elsevier, vol. 25(3), pages 167-184, April.
- Joshua Gans & Stephen King, 2003. "Access Holidays for Network Infrastructure Investment," Monash Economics Working Papers archive-39, Monash University, Department of Economics.
- Joshua S. Gans & Stephen P. King, 2004. "Access Holidays and the Timing of Infrastructure Investment," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 89-100, 03.
- Stephen Littlechild, 2007.
in: Utility Regulation in Competitive Markets, chapter 1
Edward Elgar Publishing.
- Mayo, John W & Flynn, Joseph E, 1988. "The Effects of Regulation on Research and Development: Theory and Evidence," The Journal of Business, University of Chicago Press, vol. 61(3), pages 321-36, July.
- Bailey, Elizabeth E., 1974. "Innovation and regulation," Journal of Public Economics, Elsevier, vol. 3(3), pages 285-295, August.
- Jamasb, Tooraj & Pollitt, Michael, 2008. "Liberalisation and R&D in network industries: The case of the electricity industry," Research Policy, Elsevier, vol. 37(6-7), pages 995-1008, July.
- Ai, Chunrong & Sappington, David E M, 2002. "The Impact of State Incentive Regulation on the U.S. Telecommunications Industry," Journal of Regulatory Economics, Springer, vol. 22(2), pages 133-159, September.
- Wesley A. Magat, 1976. "Regulation and the Rate and Direction of Induced Technical Change," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 478-496, Autumn.
- Joskow, P.L., 1989. "Regulatory Failure, Regulatory Reform And Structural Change In The Electric Power Industry," Working papers 516, Massachusetts Institute of Technology (MIT), Department of Economics.
- Kahn, Alfred E. & Tardiff, Timothy J. & Weisman, Dennis L., 1999. "The Telecommunications Act at three years: an economic evaluation of its implementation by the Federal Communications Commission," Information Economics and Policy, Elsevier, vol. 11(4), pages 319-365, December.
- Gerhard CLEMENZ, 1999.
"Optimal Price Cap Regulation,"
Vienna Economics Papers
vie8904, University of Vienna, Department of Economics.
- G. Brunekreeft & E. Ehlers, 2006. "Ownership Unbundling of Electricity Distribution Networks and Distributed Generation," Competition and Regulation in Network Industries, Intersentia, vol. 7(1), pages 63-87, March.
When requesting a correction, please mention this item's handle: RePEc:rsc:rsceui:2011/02. 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: (RSCAS web unit)
If references are entirely missing, you can add them using this form.