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Regulatory Risk: Economic Principles and Applications to Natural Gas Pipelines and Other Industries

  • A. Lawrence Kolbe
  • William B. Tye
  • Stewart C. Myers

Part of the Topics in Regulatory Economics and Policy Series book series (TREP, volume 14)

Table of contents

  1. Front Matter
    Pages ii-xv
  2. A. Lawrence Kolbe, William B. Tye, Stewart C. Myers
    Pages 1-7
  3. A. Lawrence Kolbe, William B. Tye, Stewart C. Myers
    Pages 9-64
  4. A. Lawrence Kolbe, William B. Tye, Stewart C. Myers
    Pages 65-114
  5. A. Lawrence Kolbe, William B. Tye, Stewart C. Myers
    Pages 115-136
  6. A. Lawrence Kolbe, William B. Tye, Stewart C. Myers
    Pages 137-156
  7. A. Lawrence Kolbe, William B. Tye, Stewart C. Myers
    Pages 157-196
  8. A. Lawrence Kolbe, William B. Tye, Stewart C. Myers
    Pages 197-221
  9. A. Lawrence Kolbe, William B. Tye, Stewart C. Myers
    Pages 223-280
  10. A. Lawrence Kolbe, William B. Tye, Stewart C. Myers
    Pages 281-292
  11. Back Matter
    Pages 327-345

About this book

Introduction

It is common to assert that utility investors are compensated in the allowed rate of return for the risk of large disallowances, such as arise for investments found imprudent or not `used and useful'. However, this book develops a new theory of asymmetric regulatory risk that shows that infallible estimates of the cost of capital are sure to provide downward-biased estimates of the necessary allowed rates of return in the presence of such regulatory risks. The book uses the new theory of regulatory risk to understand recent developments in the risk of natural gas pipelines and other regulated industries.

Keywords

Investment Natural Gas competition development regulation research risk analysis utility

Authors and affiliations

  • A. Lawrence Kolbe
    • 1
  • William B. Tye
    • 1
  • Stewart C. Myers
    • 2
  1. 1.The Brattle GroupUSA
  2. 2.Sloan School of ManagementMassachusetts Institute of Technology and The Brattle GroupUSA

Bibliographic information