EconPapers    
Economics at your fingertips  
 

Designing Price Caps for Gas Distribution Systems

Thomas Lyon () and Michael Toman

Journal of Regulatory Economics, 1991, vol. 3, issue 2, 175-92

Abstract: We examine the applicability of price-cap mechanisms to the regulation of gas distribution company rates for gas supply and transportation services. Although distribution companies will continue to be regulated for the foreseeable future, we argue that a hybrid of price and profit regulation of transportation rates will increase allocative efficiency and provide greater incentives for productive efficiency. The design of incentives for cost minimization in long-term gas supply contracts is more challenging, but an index cap, based on the cost of gas acquired by other distribution companies, merits attention. Copyright 1991 by Kluwer Academic Publishers

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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: https://EconPapers.repec.org/RePEc:kap:regeco:v:3:y:1991:i:2:p:175-92

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11149/PS2

Access Statistics for this article

Journal of Regulatory Economics is currently edited by Michael A. Crew

More articles in Journal of Regulatory Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2020-11-26
Handle: RePEc:kap:regeco:v:3:y:1991:i:2:p:175-92