Incentive Regulation

  • Project Overview

All forms of regulation are likely to impact on incentives but the term ‘incentive regulation’ has evolved to describe a form of regulation that attempts to address two key problems with economic regulation: (i) the incentive for a regulated firm to hide its true cost profile; and (ii) the lack of incentive for the regulated firm to operate and invest efficiently.

This project investigates the conceptual framework of incentive regulation and experience with its implementation in other jurisdictions.

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