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Establishing an efficient regulatory mechanism—Prerequisite for successful energy activities regulation

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  • Banovac, Eraldo
  • Glavić, Mevludin
  • Tešnjak, Sejid

Abstract

An analytic approach to determine appropriate regulatory strategies for the energy sector is proposed in this paper. A basic model of the regulatory system in the energy sector is defined, and the regulatory mechanism functions in this context are outlined. The basic problem of unknown factors (i.e., system entropy) is highlighted. An original algorithm developed to analyze regulatory background context and regulatory mechanism functions is discussed. A useful method for defining existing level of energy activities regulation is also presented using the Croatian regulatory framework as an example.

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  • Banovac, Eraldo & Glavić, Mevludin & Tešnjak, Sejid, 2009. "Establishing an efficient regulatory mechanism—Prerequisite for successful energy activities regulation," Energy, Elsevier, vol. 34(2), pages 178-189.
    • Handle: RePEc:eee:energy:v:34:y:2009:i:2:p:178-189
    DOI: 10.1016/j.energy.2008.10.002
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    1. Alfred E. Kahn, 1988. "The Economics of Regulation: Principles and Institutions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610523, December.
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