Title

The Economic Theory of Regulation Versus Alternative Theories for the Electric Utilities Industry: A Simultaneous Probit Model

Document Type

Article

Publication Date

8-1-1997

Department

Management and International Business

Abstract

This study investigates the effect of regulation on the price of electricity using a simultaneous equation system which is based on the modem theory of regulation. The estimated results show that the probability of the occurrence of regulation of utility prices by the regulatory body is positively related to utility prices. But, regulation remains ineffective in reducing the price of electricity. In all, the evidence presented here adds to, and supports, the body of knowledge regarding the theory of economic regulation. (C) 1997 Elsevier Science B.V.

Publication Title

Resource and Energy Economics

Volume

19

Issue

3

First Page

191

Last Page

202