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Network depreciation and energy market disruption: Options to avoiding passing costs down the line

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  • Crawford, Garth

Abstract

Traditional monopoly regulation as applied to the Australian electricity and gas network sector effectively presumes future consumers will meet a substantial proportion of the capital costs of long-lived network investments made today. Yet changes in demand, technology and cost conditions make this presumption less certain than in the past. These changes are potentially putting current approaches, and effectively the traditional ‘regulatory compact’, under pressure.

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  • Crawford, Garth, 2015. "Network depreciation and energy market disruption: Options to avoiding passing costs down the line," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 163-171.
    • Handle: RePEc:eee:ecanpo:v:48:y:2015:i:c:p:163-171
    DOI: 10.1016/j.eap.2015.11.004
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    References listed on IDEAS

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    Cited by:

    1. Paul Simshauser, 2023. "The regulation of electricity transmission in Australia's national electricity market: user charges, investment and access," Working Papers EPRG2311, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    2. Halkos, George & Managi, Shunsuke & Tsilika, Kyriaki, 2017. "Evaluating a continent-wise situation for capital data," Economic Analysis and Policy, Elsevier, vol. 55(C), pages 57-74.
    3. Tim Nelson & Stephanie Bashir & Eleanor McCracken-Hewson & Michael Pierce, 2017. "The Changing Nature of the Australian Electricity Industry," Economic Papers, The Economic Society of Australia, vol. 36(2), pages 104-120, June.
    4. Tim Nelson, 2017. "Redesigning a 20th century regulatory framework to deliver 21st century energy technology," Journal of Bioeconomics, Springer, vol. 19(1), pages 147-164, April.
    5. Simshauser, Paul & Akimov, Alexandr, 2019. "Regulated electricity networks, investment mistakes in retrospect and stranded assets under uncertainty," Energy Economics, Elsevier, vol. 81(C), pages 117-133.
    6. Guthrie, Graeme, 2020. "Regulation, welfare, and the risk of asset stranding," The Quarterly Review of Economics and Finance, Elsevier, vol. 78(C), pages 273-287.
    7. Simshauser, Paul, 2017. "Monopoly regulation, discontinuity & stranded assets," Energy Economics, Elsevier, vol. 66(C), pages 384-398.

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