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dc.contributor.authorBrucal, A
dc.contributor.authorTarui, N
dc.date.accessioned2021-07-15T12:43:20Z
dc.date.issued2021-07-13
dc.description.abstractRevenue decoupling (RD) is a regulatory mechanism that allows adjustments of retail electricity rates for the regulated utility to recover its required revenue despite fluctuations in its sales volume. The U.S. utility data in 2000-2019 reveals that RD is associated with about a 4-percentage point higher growth rate of residential electricity prices within the first year after RD is implemented relative to carefully matched non-decoupled utilities with similar pre-RD sales trends. Theoretically, unexpected sales declines would lead to higher electricity prices while unexpected sales increases would lead to lower prices. While RD adjustments have reportedly yielded both refunds and surcharges, our analysis indicates that electricity prices demonstrate downward rigidity and statistically significant upward adjustments for the utilities subject to RD. The asymmetric movement in retail prices may be associated with the political economy underlying the adoption and the implementation of RD.en_GB
dc.description.sponsorshipGrantham Foundationen_GB
dc.description.sponsorshipEconomic and Social Research Council (ESRC)en_GB
dc.identifier.citationArticle 105440en_GB
dc.identifier.doi10.1016/j.eneco.2021.105440
dc.identifier.grantnumberJPMJCR15K2en_GB
dc.identifier.urihttp://hdl.handle.net/10871/126434
dc.language.isoenen_GB
dc.publisherElsevieren_GB
dc.rights.embargoreasonUnder embargo until 13 January 2023 in compliance with publisher policyen_GB
dc.rights©2021 Published by Elsevier B.V. This version is made available under the CC-BY-NC-ND 4.0 license: https://creativecommons.org/licenses/by-nc-nd/4.0/  en_GB
dc.subjectUtility regulationen_GB
dc.subjectRevenue decouplingen_GB
dc.subjectElectricity sectoren_GB
dc.titleThe effects of utility revenue decoupling on electricity pricesen_GB
dc.typeArticleen_GB
dc.date.available2021-07-15T12:43:20Z
dc.identifier.issn0140-9883
dc.descriptionThis is the author accepted manuscript. The final version is available from Elsevier via the DOI in this recorden_GB
dc.identifier.journalEnergy Economicsen_GB
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/  en_GB
dcterms.dateAccepted2021-06-30
rioxxterms.versionAMen_GB
rioxxterms.licenseref.startdate2021-07-13
rioxxterms.typeJournal Article/Reviewen_GB
refterms.dateFCD2021-07-15T12:16:08Z
refterms.versionFCDAM
refterms.panelCen_GB


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©2021 Published by Elsevier B.V. This version is made available under the CC-BY-NC-ND 4.0 license: https://creativecommons.org/licenses/by-nc-nd/4.0/  
Except where otherwise noted, this item's licence is described as ©2021 Published by Elsevier B.V. This version is made available under the CC-BY-NC-ND 4.0 license: https://creativecommons.org/licenses/by-nc-nd/4.0/