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

by Stewart C. Myers, William B. Tye, A. Lawrence Kolbe

Book Overview

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...

• Format: Paperback
• Language: English
• ISBN: 1461364213
• ISBN13: 9781461364214
• Release Date: September 2012
• Publisher: Springer
• Length: 345 Pages
• Weight: 1.12 lbs.
• Dimensions: 0.8" x 6.1" x 9.2"