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- W158529988 abstract "The energy crisis of the 1970s has lead to a demand for increased regulation of the energy sector by certain governments for several reasons. Increased regulation is viewed as a means of assuring access to alternative energy sources for all people. This is the welfare argument. Regulation is also viewed as a means of rationalizing the system of energy delivery. This is the efficiency argument. Under this traditional view of regulation the prices and profits of the regulated energy industry are expected to be lower and the allocation of energy sources more efficient. However, this traditional view of alternative energy source regulation is not without flaw. Firms of the energy producing industry can use several methods to ''capture'' established regulatory agencies and ''force'' them to ''regulate'' the dissatisfaction of the general public rather than the behavior of the firms. As a result, regulatory agencies can formulate decisions that are approximate to what the regulated energy industry desires instead of what the public expects. This paper will apply the arguments of the capture theory and the theory of political-economy for regulatory agencies in the alternative energy sources sector. Further, it will analyze a firm's behavior under uncertainty about demand and costmore » conditions. These conditions make it difficult for regulatory agencies to force a monopoly to make competitive investment and output decisions. Finally, it will discuss some of the problems associated with cost-benefit analysis which is widely used by regulatory agencies in their decision-making process.« less" @default.
- W158529988 created "2016-06-24" @default.
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- W158529988 date "1983-12-01" @default.
- W158529988 modified "2023-09-23" @default.
- W158529988 title "Governmental regulation in the sector of alternative energy sources: some pros and cons" @default.
- W158529988 hasPublicationYear "1983" @default.
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