The effects of average norm model regulation: The case of electricity distribution in Sweden
Tooraj Jamasb and
Magnus Söderberg
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Abstract:
Following the reform of energy sectors, some countries have used engineering norm models in incentive regulation of network utilities. In 2003, Sweden adopted this approach to regulation of electricity distribution networks. This paper examines whether the norm models represent the real networks and create incentives for performance improvement. We analyse data from 138 network concession holders between 2000 and 2007. The results show that norm models are not adequate representations of real networks. Also, utilities that perform better than their norm models tend to behave opportunistically. Finally, we find that private utilities respond more strongly to incentives.
Keywords: electricity generation; energy market; energy policy; incentive; modeling; Sweden (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (14)
Published in Review of Industrial Organization, 2010, 36 (3), pp.249-269. ⟨10.1007/s11151-010-9246-8⟩
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Journal Article: The Effects of Average Norm Model Regulation: The Case of Electricity Distribution in Sweden (2010) 
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00841952
DOI: 10.1007/s11151-010-9246-8
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