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Price Caps, Rate-of-Return Regulation, and the Cost of Capital

This Note compares the effects of price cap and rate-of-return regulation on the risk borne by regulated utilities. It present evidence that price cap regulation subjects firms to greater risks and therefore raises their cost of capital. This resul...

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Bibliographic Details
Main Authors: Alexander, Ian, Irwin, Timothy
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
AFFILIATED ORGANIZATIONS
CAPITAL COSTS
CONSUMERS
COST OF CAPITAL
COST SAVINGS
COSTS OF CAPITAL
DECISIONMAKING
EMPIRICAL EVIDENCE
EQUITY HOLDINGS
INFLATION
INVESTMENT CAPITAL
PORTFOLIO
PRICE CAP
PRICE CAP REGULATION
PRICE CAPS
PRICE OF WATER
PRIVATE SECTOR DEVELOPMENT
PRODUCTIVITY
REGULATORY AGENCIES
UTILITIES CAPITAL COSTS
RATE OF RETURN
REGULATIONS
PRICE POLICY
PRICE CONTROLS
Online Access:http://documents.worldbank.org/curated/en/1997/09/694600/price-caps-rate-of-return-regulation-cost-capital
http://hdl.handle.net/10986/11575

Internet

http://documents.worldbank.org/curated/en/1997/09/694600/price-caps-rate-of-return-regulation-cost-capital
http://hdl.handle.net/10986/11575

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