What is the X-Factor in the German Electricity Industry?

Andreas Kuhlmann

No Ifo Working Papers No. 34, Ifo Working Paper Series from Ifo Institute for Economic Research at the University of Munich

Abstract: 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.

Keywords: Electricity; productivity analysis; price cap regulation (search for similar items in EconPapers)
JEL-codes: D24 G38 L43 L51 (search for similar items in EconPapers)
Date: 2006

Downloads: (external link)
http://www.cesifo-group.de/DocDL/IfoWorkingPaper-34.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ces:ifowps:_34

Access Statistics for this paper

More papers in Ifo Working Paper Series from Ifo Institute for Economic Research at the University of Munich
Address: Poschingerstrasse 5, 81679 Munich
Contact information at EDIRC.
Series data maintained by Julio Saavedra ().