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Entry into the Electric Power Industry

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  • Tschirhart, John

Abstract

Entry of new firms into the electric power industry is becoming commonplace. The entrants typically are unregulated firms that compete with regulated electric utilities only in the generation stage of the latter's vertically integrated structure. Because of the asymmetric regulatory treatment of the incumbents and entrants, there is the possibility of biases either against efficient entry or for inefficient entry. A model of a vertical integrated utility subject to rate-of-return regulation is used to illustrate the biases, and several implications for regulatory policy are discussed. Copyright 1991 by Kluwer Academic Publishers

Suggested Citation

  • Tschirhart, John, 1991. "Entry into the Electric Power Industry," Journal of Regulatory Economics, Springer, vol. 3(1), pages 27-43, March.
    • Handle: RePEc:kap:regeco:v:3:y:1991:i:1:p:27-43
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    Cited by:

    1. Tschirhart, John & Wen, Shiow-Ying, 1999. "Tradable Allowances in a Restructuring Electric Industry," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 195-214, September.
    2. Théophile T. Azomahou & Raouf Boucekkine & Phu Nguyen-Vanc, 2009. "Promoting clean technologies under imperfect competition," Working Papers 2009_06, Business School - Economics, University of Glasgow.
    3. Tschirhart, John, 1995. "Monopsony power and the existence of natural monopoly in energy utilities," Resource and Energy Economics, Elsevier, vol. 17(4), pages 327-340, December.
    4. Théophile T. Azomahou & Raouf Boucekkine & Phu Nguyen-Vanc, "undated". "Promoting Clean Technologies: The Energy Market Structure Crucially Matters," Working Papers 2008_13, Business School - Economics, University of Glasgow.

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