Greater than the sum: On regulating innovation in electricity distribution networks with externalities
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/26786 |
Resumo: | To modernise distribution networks and enable the energy transition, we need to understand the most appropriate regulatory approach to incentivise the adoption of technology innovations in the grid. An increasing set of new technologies have positive externalities beyond the provision of basic network activities or improvement of the quality of service. These technologies provide an additional value for the transformation of the grids, challenging traditional regulatory models which tend to overlook the indirect benefits of investments. We develop a decision model to assess firms' incentives to invest in new technologies under different regulatory schemes that consider externality effects. Results show that regulatory schemes, under which companies retain all the losses and gains of achieving (or not) efficiency targets, more effectively promote innovative investments that reduce network costs. However, no one-size-fits-all scheme exist for technologies whose benefits go mostly beyond the network activities, and a case-by-case approach should be preferred. |
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Greater than the sum: On regulating innovation in electricity distribution networks with externalitiesRegulationInnovationExternalitiesTo modernise distribution networks and enable the energy transition, we need to understand the most appropriate regulatory approach to incentivise the adoption of technology innovations in the grid. An increasing set of new technologies have positive externalities beyond the provision of basic network activities or improvement of the quality of service. These technologies provide an additional value for the transformation of the grids, challenging traditional regulatory models which tend to overlook the indirect benefits of investments. We develop a decision model to assess firms' incentives to invest in new technologies under different regulatory schemes that consider externality effects. Results show that regulatory schemes, under which companies retain all the losses and gains of achieving (or not) efficiency targets, more effectively promote innovative investments that reduce network costs. However, no one-size-fits-all scheme exist for technologies whose benefits go mostly beyond the network activities, and a case-by-case approach should be preferred.Elsevier2024-09-07T00:00:00Z2022-01-01T00:00:00Z20222022-12-27T10:50:44Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/26786eng0957-178710.1016/j.jup.2022.101418Marques, V. M.Costa, P. M.Bento, N.info:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:53:19Zoai:repositorio.iscte-iul.pt:10071/26786Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:26:43.807188Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Greater than the sum: On regulating innovation in electricity distribution networks with externalities |
title |
Greater than the sum: On regulating innovation in electricity distribution networks with externalities |
spellingShingle |
Greater than the sum: On regulating innovation in electricity distribution networks with externalities Marques, V. M. Regulation Innovation Externalities |
title_short |
Greater than the sum: On regulating innovation in electricity distribution networks with externalities |
title_full |
Greater than the sum: On regulating innovation in electricity distribution networks with externalities |
title_fullStr |
Greater than the sum: On regulating innovation in electricity distribution networks with externalities |
title_full_unstemmed |
Greater than the sum: On regulating innovation in electricity distribution networks with externalities |
title_sort |
Greater than the sum: On regulating innovation in electricity distribution networks with externalities |
author |
Marques, V. M. |
author_facet |
Marques, V. M. Costa, P. M. Bento, N. |
author_role |
author |
author2 |
Costa, P. M. Bento, N. |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Marques, V. M. Costa, P. M. Bento, N. |
dc.subject.por.fl_str_mv |
Regulation Innovation Externalities |
topic |
Regulation Innovation Externalities |
description |
To modernise distribution networks and enable the energy transition, we need to understand the most appropriate regulatory approach to incentivise the adoption of technology innovations in the grid. An increasing set of new technologies have positive externalities beyond the provision of basic network activities or improvement of the quality of service. These technologies provide an additional value for the transformation of the grids, challenging traditional regulatory models which tend to overlook the indirect benefits of investments. We develop a decision model to assess firms' incentives to invest in new technologies under different regulatory schemes that consider externality effects. Results show that regulatory schemes, under which companies retain all the losses and gains of achieving (or not) efficiency targets, more effectively promote innovative investments that reduce network costs. However, no one-size-fits-all scheme exist for technologies whose benefits go mostly beyond the network activities, and a case-by-case approach should be preferred. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-01-01T00:00:00Z 2022 2022-12-27T10:50:44Z 2024-09-07T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/26786 |
url |
http://hdl.handle.net/10071/26786 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
0957-1787 10.1016/j.jup.2022.101418 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/embargoedAccess |
eu_rights_str_mv |
embargoedAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Elsevier |
publisher.none.fl_str_mv |
Elsevier |
dc.source.none.fl_str_mv |
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instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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