The Subtraction Rule and its Effects on Pricing in the Electricity Industry

Elberfeld, Walter

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URN: urn:nbn:de:bsz:180-madoc-3402
Document Type: Working paper
Year of publication: 2004
The title of a journal, publication series: ZEW Discussion Papers
Volume: 04-21
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L43 ,
Subject headings (SWD): Deutschland/Energiewirtschaftsgesetz , Energiemarkt
Abstract: The paper deals with the substraction rule, which has been proposed by the "working group security of supply in service of the cartel offices of the federal republic and the states" as an instrument to identify improperly inflated network access charges in the electricity industry. We analyze firms' price responses and adaptions to this rule. The results suggest that the introduction of the subtraction rule would increase prices, regardless of whether network access charges are improperly inflated or not.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.

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