Reflections on Incentive Regulation

Reflections on Incentive Regulation

This paper reviews in turn the papers in this Symposium on incentive regulation. It adduces the UK experience with incentive regulation, particularly in the electricity sector, to evaluate, amongst other things, the reasons for development and adoption of this approach, the determinants of setting X, and the case for more advanced metering. It suggests, among other things, that price caps can b...

Critical Reflections on Regulation

Incentive Regulation of Multinational Enterprises∗

Sectors with a long regulatory tradition have recently experienced intense activity by multinationals whose international operations and relocation threats represent a new cause for concern for regulators. The present paper analyses a multinational serving two countries and being regulated by two uninformed national authorities. The firm is shown to favor, or cross-subsidize, the country with a...

Reflections on Reflections

The graduate student workshop ''Buddhist Art: Objects and Contexts'' was an unusual event. Like Reflections of the Buddha, the exhibition it addressed, it was in constant dialogue with its physical setting, the singular Tadao Ando ¯ building home to the Pulitzer Foundation for the Arts, as the four sessions moved through the four galleries in changing light. The event was also distinguished by ...

Incentive Regulation: Evidence from German Electricity Networks

We propose a difference-in-differences (DiD) approach to estimate the impact of incentives on cost reduction. We show theoretically, and estimate empirically, that German electricity distribution system operators (DSOs) incur higher costs when subject to a loweredpowered regulation mechanism. The difference is particularly significant (about 7%) for firms in the upper quartile of the efficiency...