Price Caps, Rate-of-Return Regulation, and the Cost of Capital
This Note compares the effects of price cap and rate-of-return regulation on the risk borne by regulated utilities. It present evidence that price cap regulation subjects firms to greater risks and therefore raises their cost of capital. This resul...
| Main Authors: | , |
|---|---|
| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1997/09/694600/price-caps-rate-of-return-regulation-cost-capital http://hdl.handle.net/10986/11575 |
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