IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/22419.html
   My bibliography  Save this paper

Policy Research Supporting Policy Making: The CIDE-CRE Agreement

Author

Listed:
  • Rosellon, Juan

Abstract

This paper presents a case study of regulation of natural gas pricing in Mexico as a case of “successful” policy research. Studies done under an academic agreement between the Comisión Reguladora de Energía (CRE) and the Centro de Investigación y Docencia Económicas (CIDE) in Mexico City have analyzed the welfare efficiency implications of the netback rule based on the Houston gas price that is used to set the domestic gas price. This rule results from a well structured welfare maximization general model. However, in practice the netback rule has been debated during several North American price spikes. Policy makers relied on CIDE studies to keep the netback rule. This case study examines how and why policy makers did so. The debate within the Mexican government is analyzed, and the actors involved in the policy discussions are described, as well as the relationships between CIDE and CRE that were developed, and that helped in the communication with policymakers. The methods of dissemination of research are also discussed.

Suggested Citation

  • Rosellon, Juan, 2008. "Policy Research Supporting Policy Making: The CIDE-CRE Agreement," MPRA Paper 22419, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:22419
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/22419/1/MPRA_paper_22419.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brito, Dagobert L. & Rosellón, Juan, 2005. "Un modelo de equilibrio general para la fijación de precios del gas natural en México," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(286), pages 391-408, abril-jun.
    2. Dagobert L. Brito & Juan Rosellon, 2002. "Pricing Natural Gas in Mexico: An Application of the Little-Mirrlees Rule," The Energy Journal, , vol. 23(3), pages 81-93, July.
    3. Dagobert L. Brito & William Laney Littlejohn & Juan Rosellón, 2000. "Pricing Liquid Petroleum Gas in Mexico," Southern Economic Journal, John Wiley & Sons, vol. 66(3), pages 742-753, January.
    4. Jean-Jacques Laffont, 1988. "Fundamentals of Public Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121271, April.
    5. Brito Dagobert L. & Rosellón Juan, 2005. "Price Regulation in a Vertically Integrated Natural Gas Industry: The Case of Mexico," Review of Network Economics, De Gruyter, vol. 4(1), pages 1-18, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dagobert Brito & Juan Rosellón, 2011. "Lumpy Investment in Regulated Natural Gas Pipelines: An Application of the Theory of the Second Best," Networks and Spatial Economics, Springer, vol. 11(3), pages 533-553, September.
    2. Guerrero, Daniel & Rosellon, Juan, 2017. "Planeación Óptima de la Red de Transmisión Eléctrica de Baja California Sur [Optimal Planning of the Electricity Transmission Grid of Southern Baja California (Mexico)]," MPRA Paper 83708, University Library of Munich, Germany.
    3. Brito, Dagobert & Rosellon, Juan, 2004. "Implications Of The Elasticity Of Natural Gas In Mexico On Investment In Gas Pipelines And In Setting The Arbitrage Point," MPRA Paper 54115, University Library of Munich, Germany.
    4. Leonardo Felli & Antonio Merlo, 2006. "Endogenous Lobbying," Journal of the European Economic Association, MIT Press, vol. 4(1), pages 180-215, March.
    5. Peter J. Lambert & Helen T. Naughton, 2009. "The Equal Absolute Sacrifice Principle Revisited," Journal of Economic Surveys, Wiley Blackwell, vol. 23(2), pages 328-349, April.
    6. Berliant, Marcus & Gouveia, Miguel, 2022. "On the Political Economy of Nonlinear Income Taxation," MPRA Paper 113140, University Library of Munich, Germany.
    7. Gorkem Celik & Dongsoo Shin & Roland Strausz, 2021. "Public good overprovision by a manipulative provider," RAND Journal of Economics, RAND Corporation, vol. 52(2), pages 314-333, June.
    8. Ferrari, Giorgio & Riedel, Frank & Steg, Jan-Henrik, 2016. "Continuous-Time Public Good Contribution under Uncertainty," Center for Mathematical Economics Working Papers 485, Center for Mathematical Economics, Bielefeld University.
    9. Jean-Marc Bonnisseau & Elena Mercato, 2010. "Externalities, consumption constraints and regular economies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 44(1), pages 123-147, July.
    10. Spiros Bougheas & Panicos Demetriades & Edgar Morgenroth, 2003. "International aspects of public infrastructure investment," Canadian Journal of Economics, Canadian Economics Association, vol. 36(4), pages 884-910, November.
    11. M. Molinari, 2014. "A Second Best Theory of Institutional Quality," Public Organization Review, Springer, vol. 14(4), pages 545-559, December.
    12. Marina Tsygankova, 2008. "Netback pricing as a remedy for the Russian gas deficit," Discussion Papers 554, Statistics Norway, Research Department.
    13. : Eduardo L. Giménez (a) & Miguel Rodríguez, "undated". "Pigou’S Dividend Versus Ramsey’S Dividend In The Double Dividend Literature," Working Papers 2-06 Classification-JEL :, Instituto de Estudios Fiscales.
    14. Ramirez, Jose Carlos & Rosellon, Juan, 2002. "Pricing natural gas distribution in Mexico," Energy Economics, Elsevier, vol. 24(3), pages 231-248, May.
    15. Hellwig, Martin F., 2007. "The provision and pricing of excludable public goods: Ramsey-Boiteux pricing versus bundling," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 511-540, April.
    16. Elena L. Mercato & Vincenzo Platino, 2017. "On the regularity of smooth production economies with externalities: competitive equilibrium à la Nash," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(1), pages 287-307, January.
    17. Snyder, Susan K., 1999. "Testable restrictions of Pareto optimal public good provision," Journal of Public Economics, Elsevier, vol. 71(1), pages 97-119, January.
    18. Heidi Jane Smith & Gabriel Purón Cid & Irving Rosales, 2019. "The Teaching of Public Finance and Budgeting as an Indicator of the Quality of Public Service Education in Mexico," Working Paper Series Sobre México 2019003, Sobre México. Temas en economía.
    19. Landier, Augustin & Ueda, Kenichi, 2009. "True Taxpayer Burden of Bank Restructuring," TSE Working Papers 10-238, Toulouse School of Economics (TSE), revised 16 Dec 2010.
    20. Stephen K. Swallow & Michael P. McGonagle, 2006. "Public Funding of Environmental Amenities: Contingent Choices Using New Taxes or Existing Revenues for Coastal Land Conservation," Land Economics, University of Wisconsin Press, vol. 82(1), pages 56-67.

    More about this item

    Keywords

    natural gas; price regulation; benchmarking; policiy research; Mexico;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:22419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.