Designing optimal gain sharing plans to promote energy conservation

Leon Chu () and David Sappington

Journal of Regulatory Economics, 2012, vol. 42, issue 2, 115-134

Abstract: We analyze the optimal design of gain sharing plans to promote energy conservation. We show how the optimal plan varies as industry conditions and the regulator’s information change. We demonstrate the importance of allowing the energy supplier a choice among plans, some of which offer the prospect of both pronounced financial gains for superior performance and substantial losses for inferior performance. Copyright Springer Science+Business Media, LLC 2012

Keywords: Energy conservation; Gain sharing; Asymmetric information; D82; L51; Q38 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (14)

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DOI: 10.1007/s11149-012-9194-3

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