COSTS, TECHNOLOGY AND OWNERSHIP FORM OF NATURAL GAS DISTRIBUTION IN ITALY

Giovanni Fraquelli () and Roberto Giandrone
Additional contact information
Giovanni Fraquelli: Ceris - Institute for Economic Research on Firms and Growth,Turin, Italy
Roberto Giandrone: Italgas S.p.A.

CERIS Working Paper from CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY

Abstract: The analysis of the technology and costs of the gas distribution networks highlights that the number of customers is more important than the amount of gas delivered, as well as the absence of economies of scale, the presence of economies of density and the significant role of the morphologic and demographic variables. The diversification towards other services, such as water and electricity, provides good opportunities for efficiency. The lower costs for private operators and the constant economies of scale indicate that the privatisation process should continue and confirm the benefits of having many operators (yardstick competition). The control of monopoly rents in efficient conditions requires the use of a tariff system similar to a price-cap, provided that it takes into account the territorial constraints.

JEL-codes: L33 L95 (search for similar items in EconPapers)
Pages: 22 pages Keywords : Gas utilities, Costs, Public and private enterprise
Date: 1997-12
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.byterfly.eu/islandora/object/librib:372254 (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: https://EconPapers.repec.org/RePEc:csc:cerisp:199713

Access Statistics for this paper

More papers in CERIS Working Paper from CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY Contact information at EDIRC.
Bibliographic data for series maintained by Anna Perin () and Giancarlo Birello ().