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    The regulatory experience of Italy and the United States with dedicated incentives for strategic electricity transmission investment

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    Publication type
    Journal article with impact factor
    Author
    Keyaerts, Nico
    Meeus, Leonardo
    Publication Year
    2017
    Journal
    Utilities Policy
    Publication Volume
    46
    Publication Issue
    June
    Publication Begin page
    71
    Publication End page
    80
    
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    Abstract
    There is a trend in regulatory practice towards providing dedicated incentives for strategic investments. Italy and the United States have the longest experience with authorizing returns and risk-mitigating incentives that deviate from standard regulatory treatment for policy purposes. In these countries, the regulatory incentives are based on a case-by-case assessment of capital projects. We find that the Italian scheme is simpler, which reduces administrative costs. The U.S. scheme is more advanced in the case-by-case assessment. Even though dedicated incentives may be controversial, our analysis of both experiences shows that, notwithstanding significant learning costs, both schemes have facilitated substantial financial investment in strategically important infrastructure.
    Keyword
    Electricity Transmission, Transmission Grid, Interconnection, Incentive Regulation
    Knowledge Domain/Industry
    Special Industries : Energy
    DOI
    10.1016/j.jup.2017.04.005
    URI
    http://hdl.handle.net/20.500.12127/6054
    ae974a485f413a2113503eed53cd6c53
    10.1016/j.jup.2017.04.005
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